Q3 2023 Charlotte Industrial Market Report

Demand for space in the Charlotte industrial market remains strong and the fundamentals continue to outpace pre-pandemic levels, but the balance of supply and demand is beginning to shift in the second half of this year. Leasing activity has moderated as 2023 has progressed, coinciding with a record level of new supply beginning to deliver. While net absorption has remained firmly positive, deliveries have outpaced absorption for the first three quarters of this year. The result has been an uptick in vacancy rates. Deliveries will continue in the market with a majority of the new buildings are 250,000 square feet or larger. Despite an abundance of new supply, year-over-year rent growth has remained one of the most robust in the nation. However, rent growth is slowing from double-digit yearly growth.

Charlotte’s location as a distribution hub has helped soften the blow of a generally cautious economy and accompanying consumer spending. Market participants have noted a divide between smaller 100,000 square foot, infill buildings that have increasingly small availability rates, while larger box buildings 500,000 square feet or larger have begin to take longer to lease.

Download the full report to learn more