Q4 2023: Charlotte Office Market Report

In 2023, the office market faced considerable challenges, but there are indications that tenants are once again contemplating their long-term office strategies following the pandemic. Notably, several large leases were announced, including TTX in the South End, Ameriprise Financial in Uptown, and SERC in the South Charlotte area. Additionally, there was a slight decline in sublease availabilities. Charlotte’s office market continues to witness the “flight-to-quality” trend, wherein new assets boasting rich amenities attract tenants, while older commodity buildings raise concerns due to approaching debt maturities and rising vacancies.

The combination of tight credit markets and high construction costs has made new construction projects nearly unfeasible. However, projects initiated during the COVID period, such as Savona Mill and ThePass, have now been completed and offer tenants additional options. These projects are located in emerging office submarkets close to mass transit and high-density neighborhoods, enhancing their appeal to potential occupants.

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