AM_Carolinas Discover CLT_Q4 2018 | Page 19

SouthPark Q4 2018 Capitol Towers sale was largest suburban deal of 2018. Quick Stats Inventory (s.f.) (percent of total market) Q4 2018 4,628,886 (9.0%) Total vacancy 12.3% Direct vacancy 11.7% YTD total net absorption (s.f.) 218,090 Under construction 0 YTD completions (s.f.) 0 Overall average asking rent $31.67 Class A average asking rent $33.79 Class B average asking rent $26.86 • Atlanta based Preferred Office Properties purchased the Capitol Towers buildings from Lincoln Harris for a reported $208.8 million. This was the largest suburban office sale in 2018. • Due in large part to Albemarle occupying their new space at Capitol Towers North, SouthPark absorbed the most square footage across Charlotte in Q4. • Publix announced it will anchor The Colony development, which is set to begin construction in Q2 2019. Synco Properties & Schlosser Development have teamed up on this project. The shopping center will feature over 250,000 SF of office, 990 apartment units and 300,000 SF of retail. Rent vs Vacancy $34.00 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% $32.00 $30.00 $28.00 $26.00 $24.00 $22.00 $20.00 2014 2015 2016 Rent 2017 2018 Vacancy Absorption vs Completions 300,000 250,000 200,000 150,000 100,000 50,000 - (50,000) 2014 2015 2016 2017 2018 (100,000) Net absorption Construction Completions 19