Observations
Charlotte Office
1
Rents continue to rise in growing market
•
Rental rates continue to climb in Midtown/South End, with Class A average asking rates reaching
$34.84 per square foot.
There is 3.3 million square feet of new construction in the market, with 2.5 million concentrated in
the Central Business District.
All eyes are on Midtown/South End as four key development projects move closer to completion.
The Refinery and 300 W Summit topped out, while The RailYard and Dimensional Place progress
further as well.
•
•
2
Coworking, creative space, and conversions are expected to continue into 2019
•
Coworking companies continue to expand their footprint in the Queen City, with Midtown/South End
next in line. Earlier this year Spaces leased 27,400 square feet at 307 W Tremont, and now Serendipity
Labs and WeWork have entered this booming submarket. Serendipity Labs leased 22,941 square
feet at The Refinery, while WeWork added to its footprint and leased two floors at Beacon’s RailYard
development.
WeWork, headquartered in New York, has grown their presence in Uptown, leasing 141,081 across
seven floors at 128 South Tryon.
9315 N. Tryon St. is an 87,730 square foot office conversion located adjacent to the J.W. Clay Blvd light
rail station. This Cambridge Properties owned conversion is one example of the opportunities the
University submarket can expect to see as the Blue Line Extension connects the submarket to the CBD.
•
•
3
Investment moving into the Queen City
• Twelve buildings traded in the CBD in 2018, totaling a combined $603,285,000. Those buildings
include: in Uptown, the 458,158-square-foot Wake Forest University Charlotte Center at 200 N
College St and 129 W Trade St, while in Midtown/South End Beacon Partners sold their asset at 500 E
Market Snapshot
Morehead St.
• Total sales across the market reached $1.3 billion in 2018.
Key
markets
healthy
Key suburban
suburban
markets
healthy
16.0%
14.6%
12.9%
$25.00
14.6%
13.9%
12.0%
14.0%
13.5%
13.3%
12.0%
Class A
11.3%
$20.00
10.0%
12.9%
8.0%
$15.00
6.6%
Class B
66%
66%
6.0%
4.0%
$0.00
2.0%
14
Source: JLL Research
Total Vacancy Rate Q4 2018
Charlotte
13.4%
Class A Rents $30.88
Class B Rents $23.11
Market Snapshot
0.0%
Source: JLL Research
Asking Rate Q4 2018
Total Vacancy
34%
$10.00
$5.00
3,337,970
Class B
34%
$30.00
823,891
13.4% $28.79
18.0%
16.5%
2,514,079
51,003,234
Class A
17.9%
12.0% 14.6% 29,458,380
20.0%
18.7%
$33.29 $25.40 21,544,854
Market snapshot
New product is driving up rental values while vacancies remain stable
$35.00
Under Construction
Suburban
Total
$40.00
Total Vacancy CBD(Uptown and Midtown-
South End)
New product is driving up rental rates while vacancies remain stable
Average Asking
Rent
Inventory
Submarket
Submarket Inventory CBD(Uptown and Midtown-
South End) Average Asking
Rent
21,544,854 Suburban 29,458,380 Total 51,003,234
8
Class A
Class B
Charlotte
Total Vacancy Under Construction
$33.29 12.0% 2,514,079
$25.40 14.6% 823,891
$28.79 13.4% 3,337,970