Q3 2023 Charlotte Office Market Report

A clearer picture of the Charlotte office market is beginning to come into view as the end of the year approaches. The good news is that Charlotte has been riding several years of growth both in terms of population and the economy. Like other Sun Belt markets, the metro has capitalized on tailwinds of a migration of companies and people to the Southeast. The short-term, however, has been painful as a handful of long-anticipated move-outs and consolidations in the first half of 2023.

Charlotte office vacancy rates rose to 12.7 percent which is the highest rate seen in the market since 2012. This large amount of vacancy can be attributed to larger tenants, like Bank of America, Wells Fargo and Duke Energy consolidating their footprint into owned assets around the marketplace.

For the first time since Q1 2023, the total amount of sublease space has decreased below 3 million square feet. The 2.97 million square feet of sublet space is made up of 101 spaces, with the greatest amount, 987594 square feet, found in the Airport submarket.

TTX Railcar’s announcement that it would relocate its headquarters from Chicago to Charlotte have provided some grounds for optimism that the new-to-market companies are beginning to resurface. 

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