AM_Carolinas Discover CLT_Q4 2018 | Page 18

Midtown/South End Q4 2018 Delivery of investment grade product expected in 2019 Quick Stats Inventory (s.f.) (percent of total market) Q4 2018 2,893,172 (5.7%) Total vacancy 6.6% Direct vacancy 6.1% YTD total net absorption (s.f.) Under construction YTD completions (s.f.) 42,033 761,006 0 Overall average asking rent $34.84 Class A average asking rent $35.27 Class B average asking rent $30.91 • With a slew of projects set to deliver in 2019, vacancy should remain tight as preleasing efforts continue. • 300 W Summit is set to deliver in early January. The Stiles development is the first of what is anticipated to an active year for major projects in South End to be completed with The Railyard, The Refinery and Dimensional Place all nearing the final phases of construction. In Midtown, Selwyn Property group announced they will develop 20,000 sf of office on Lexington Avenue. Rent vs Vacancy $40.00 10.0% 8.0% $35.00 6.0% $30.00 4.0% $25.00 $20.00 2.0% 2014 2015 2016 Rent • Beacon Partners announced a new mixed use project, Common Square, at the corner of S. Tryon & West Blvd. The development will include 130,000 SF of office and potentially a boutique hotel. 2017 2018 0.0% Vacancy Absorption vs Completions 250,000 200,000 150,000 100,000 50,000 - 2014 2015 Net absorption 18 2016 2017 Completions 2018