2023 Q1 Charlotte Office Market Report

The office sector continues to struggle amid macroeconomic headwinds and decreased demand as occupiers rethink their space needs. The Charlotte market is a tale of two asset types as new Class A, highly-amenitized buildings continue to perform well, while older buildings are struggling to retain a foothold. Charlotte recorded the highest level of vacancy since real estate data has been meaningfully tracked, mostly due to Wells Fargo and Bank of America vacating nearly 730,000 square feet of space in Uptown. Subleases continue to flood the market rising to nearly 1.9 million square feet total. Stories of assets returning to lenders are making headlines, and it is expected that this will continue as struggling assets are difficult to refinance amid the higher interest rate environment and rising vacancy due to lagging demand.