Q4 2023: Charlotte Industrial Market Report

Driven by record supply deliveries and moderating demand, Charlotte region industrial vacancy continued to rise, closing at 6.9 percent for 2023. The bulk of speculative deliveries have been in larger facilities (250,000 square feet and greater). At the same time, most of the pullback in demand around the region has been from larger tenant requirements. The result is an environment where tenants with larger space requirements (over 100,000 square feet) have more leverage to negotiate favorable terms than has been seen in years.

Conversely, there has been limited delivery of smaller facilities while demand for 50,000 square feet spaces and below remains robust. These occupiers are experiencing the same challenges as the last several years; limited leverage and continued rising rates. We expect these same trends for both larger and smaller tenants to continue well into 2024.

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