AM_Carolinas Discover CLT_Q4 2018 | Page 22

University Q4 2018 University reaping the benefits of employment growth Quick Stats Inventory (s.f.) (percent of total market) Q4 2018 4,199,978 (8.2%) Total vacancy 17.9% Direct vacancy 17.6% YTD total net absorption (s.f.) 2,174 Under construction 0 YTD completions (s.f.) 0 Overall average asking rent $22.40 Class A average asking rent $21.76 Class B average asking rent $22.92 Rent vs Vacancy • Cognizant, an IT consulting firm, announced plans to add 300 jobs in the next 5 years, first expanding within their current space at 8520 Cliff Cameron Drive. • 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 long term growth the University submarket can expect as the Blue Line Extension connects the submarket to the CBD. 20.0% $23.00 $22.50 $22.00 $21.50 $21.00 $20.50 $20.00 $19.50 $19.00 $18.50 $18.00 $17.50 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 2014 • Class B rents rose to $22.96/SF this quarter, continuing to pace the University submarket. 2015 2016 Rent vs vacancy Rent 2017 2018 Rent vs vacancy Vacancy Absorption vs Completions 250,000 200,000 150,000 100,000 50,000 0 -50,000 2014 2015 Net absorption 22 2016 2017 Construction Completions 2018 0.0%