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Five Fast Facts: Charlotte Industrial Q4 2019

Will Propst • 2/13/2020
The Charlotte industrial market reported a year-end average asking rent of $5.60 per square foot (psf) triple net (NNN), up $0.18 psf (3.3% increase) from a year ago.

Charlotte Industrial Fast Five Facts

  • Charlotte’s industrial net absorption totaled just under 1.0 million square feet (msf) in the fourth quarter 2019, bringing the year-end total to over 3.3 msf
  • Direct vacancy for the market finished the fourth quarter at 6.4%, a marginal 110 bps increase over the fourth quarter of 2018, which is explained by deliveries outpacing absorption in the short term
  • The Charlotte industrial market reported a year-end average asking rent of $5.60 per square foot (psf) triple net (NNN), up $0.18 psf (3.3% increase) from a year ago
  • Currently, there is 5.7 msf of warehouse space under construction, most of which is speculative construction
  • Capital markets volume will increase as developers look to monetize their stabilized speculative assets. Additionally, industrial ownership continues to see consolidation due to entity level mergers and acquisitions

Charlotte’s industrial net absorption totaled just under 1.0 million square feet (msf) in the fourth quarter 2019, bringing the year-end total to over 3.3 msf. Over the past five years, Charlotte has averaged an annual total of 3.4 msf of net absorption. This trend is expected to exceed the five-year average as the 5.7 msf of new deliveries in 2019 is absorbed in the coming year. Direct vacancy for the market finished the fourth quarter at 6.4%, a marginal 110 bps increase over the fourth quarter of 2018, which is explained by deliveries outpacing absorption in the short term. This should not cause concern to developers and landlords as tenant demand has been increasingly strong for institutional, Class A buildings.

View Q4 2019 Industrial MarketBeat report

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