AM_Carolinas Discover CLT_Q4 2018 | Page 17

Uptown Q4 2018 Honeywell headquarters announcement and capital investment end strong 2018 Stats Rundown Q4 2018 Inventory (s.f.) (percent of total market) 18,651,682 (36%) Total vacancy 12.9% Direct vacancy 12.6% YTD total net absorption (s.f.) Under construction YTD completions (s.f.) • 132,141 1,753,073 0 Overall average asking rent $33.10 Class A average asking rent $33.73 Class B average asking rent $28.17 Uptown, and the city as a whole, had a major economic development win as Honeywell chose Charlotte for its headquarter relocation. • In a year dominated by coworking headlines, 2018 ended with more traditional leasing announcements; KPMG and Deloitte will combine for 148,717 sf at Legacy Union, a Lincoln Harris development. Preleasing of spec projects continues to be a trend market wide. • • Dominion Realty Partners broke ground on a mixed use development at 401 Graham St. that is set to bring 158,000 sf of office to Uptown. First National Bank will be the anchor tenant. Rent vs Vacancy $34.00 14.0% $32.00 12.0% $30.00 10.0% $28.00 8.0% $26.00 6.0% $24.00 4.0% $22.00 2.0% $20.00 2014 2015 2016 Rent Uptown was Charlotte’s most active submarket for capital investment, totaling an estimated $479,000,000 in sales transactions in 2018. 2017 2018 0.0% Vacancy Absorption vs Completions 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 -200,000 2014 2015 Net absorption 2016 2017 Construction Completions 2018