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The Charlotte Commercial Real Estate Market

Category: Markets

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Charlotte's commercial real estate marketplace draws investors and tenants nationwide. The city's steadily growing population and diverse, robust job market make Charlotte an attractive investment option for CRE professionals and developing businesses alike. Charlotte-based brokers and investors utilize Crexi's robust suite of CRE technology tools to discover properties and close more deals.

Using Crexi's powerful search tools, buyers and tenants in Charlotte and beyond can explore thousands of Charlotte-Concord-Gastonia MSA properties. Upon finding the perfect property, searchers can quickly narrow search results and reach out to the relevant Charlotte broker in seconds. 

Similarly, brokers harness Crexi's powerful listing and lead management software to market and close deals across Charlotte and the surrounding cities. Thanks to Crexi's simplified tools, it's easier than ever for Charlotte commercial brokers to connect with high-quality leads. As of this writing, CRE professionals have closed over $615 billion in property transactions and marketed properties at a total valuation above $7 trillion. 

Crexi proudly serves Charlotte, Gastonia, Concord, Mooresville, Matthews, and Mecklenburg County as the region's fastest-growing digital commercial real estate marketplace.

The State of Commercial Real Estate in Charlotte

Charlotte is the largest city in North Carolina, known for its dynamic skyline and diverse economy. It serves as a significant hub for finance, technology, and energy sectors. The city hosts the headquarters of major corporations such as Bank of America and Duke Energy, cementing its status as a financial powerhouse second only to New York City.

The city's infrastructure continues to expand, with numerous commercial and multifamily residential projects underway. Charlotte's blend of historic charm and modern amenities creates a unique living and working environment.

Key neighborhoods like Uptown offer an urban lifestyle with access to cultural attractions, fine dining, and entertainment venues, while areas like South End attract younger professionals with trendy shops and creative spaces.

Charlotte Regional Breakdown

Charlotte and the metropolitan area have seen significant population increases fueled by a booming economy and an expanding job market. Government initiatives like the Capital Investment Plan, which aims to improve infrastructure and public services, are helping to meet the needs of the growing population.

  • Charlotte is the county seat of Mecklenburg County and the most populous city in North Carolina.
  • Over 911,000 reside in Charlotte, with nearly 1.2 million in the county and almost 2.8 million in the metropolitan area.
  • Population in the region has increased by about 25% since 2010, based on the most recent census, and by 4.2% since 2020.
  • The Charlotte Region is projected to grow to nearly 4.6 million in 2050, according to a report from the Charlotte Regional Business Alliance.
  • The median age is 38, a little less than the figure in the US, as cited on CensusReporter.org.
  • DataUSA.io reports that median household income increased by more than 9.5% to $76,177 yearly, while median property values grew by more than 19% over the past year.

Charlotte Job Market

Charlotte's economy is robust and diversified, anchored by major finance, technology, and energy players. The city is home to the headquarters of Bank of America and Truist Financial, making it a significant banking hub. 

Additionally, a burgeoning tech scene and substantial venture capital investment have fostered innovation and startup growth. Prominent employers like Wells Fargo, Honeywell, and Lowe's contribute to the city's strong job market, while government initiatives focus on enhancing infrastructure and fostering business-friendly policies.

  • The total GDP for Charlotte-Concord-Gastonia NC-SC MSA is nearly $229 billion, according to the most recent report by the St. Louis Fed.
  • The Charlotte Region boasts an employment growth of 4.6% year-over-year (December 2022), outpacing North Carolina, South Carolina, and the US.
  • Target industries include advanced manufacturing, financial services, innovation economy, life sciences, and logistics and distribution.
  • The unemployment rate is 3.2%, with an employed population of more than 1.4 million in the metropolitan area, based on data from the US Bureau of Labor Statistics (April 2024).
  • Top employers in Charlotte, NC, include Bank of America, Belk, Duke Energy, Atrium Health, Lending Tree, Wells Fargo, and Amazon, with 13 Fortune 1000 companies headquartered in the metro area.
  • Charlotte continues to attract significant commercial real estate investments, including the start of office projects by Centene Corp. and numerous developments in the South End.
  • The Charlotte area is home to prominent educational institutions such as the University of North Carolina at Charlotte, Queens University of Charlotte, and Johnson C. Smith University, contributing to the region’s academic and research capabilities.
  • Nearly 41% of residents hold a bachelor’s or post-graduate degree, a rate about 10% higher than in the US.
  • Charlotte boasts a well-developed transportation infrastructure, with major interstates like I-77 and I-85, providing easy access to other major metros such as Atlanta and Washington, DC, and proximity to ports in Wilmington and Charleston.
  • The city is also home to the bustling Charlotte Douglas International Airport (CLT), with extensive domestic and international flights.

Charlotte Industrial Market

Charlotte's industrial market is adjusting towards pre-pandemic norms, with vacancy rates rising due to significant new supply delivered over the past five quarters. This increase in available space is largely from more extensive availability outside the 485 Beltway. 

Despite the vacancy rise, the overall rate aligns with pre-pandemic averages, and a robust construction pipeline indicates continued growth. Developers are proceeding cautiously, focusing on build-to-suit projects and phased expansions in successful industrial parks.

Market overview (Cushman & Wakefield Q1 2024 Charlotte Industrial Report

  • Inventory: 302,650,522 SF
  • Vacancy rate: 5.6%
  • Net absorption: 340,157 SF (Q1 2024)
  • Deliveries: 1,795,719 SF
  • Under construction: 13,175,853 SF
  • Key leases by tenant: Exel Inc., Progressive Furniture, Minka Lighting, Ingersol Rand
  • Largest submarkets: Southwest, North, York County, Iredell County

Crexi Insights

These are the most recent lease and sales trends from Crexi Insights (as of June 2024):

For Lease (active)

  • Asking rate/SqFt (median): $14 per year
  • Median SqFt/listing: 8,447
  • Days on market: 202
  • Total listings on Crexi: 195 spaces

For Sale (active)

  • Median asking price: $3.3 million
  • Price/SqFt: $194
  • Asking cap rate: 6.6%
  • Days on market: 59
  • Total listings on Crexi: 38

Sales Comps (past 12 months)

  • Median sold price: $2.32 million
  • Sold price/SqFt: $183
  • Total sales volume: $520 million
  • Sold cap rate: 6.0%
  • Median SqFt sold/transaction: 5,636
  • Total SqFt sold: 2.02 million 
  • Days on market (median): 93


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Charlotte Office Market

The Charlotte office market is showing signs of stabilization, with the pace of negative net absorption easing as demand for quality spaces continues to drive activity. Average asking rates are experiencing modest growth, particularly in Class A properties and prime submarkets such as Midtown. 

Leasing activity remains strong, especially in the Airport and CBD areas, while new construction projects continue to add significant office space to the market. Despite some headwinds in investment sales due to broader economic uncertainties, the market's fundamentals reflect resilience and steady interest in high-quality office property.

Market overview (CBRE Charlotte Office Figures Q1 2024)

  • Inventory: 63,910,528 SF
  • Vacancy rate: 23.1%
  • Net absorption: -74,210 SF (Q1 2024)
  • Leasing activity: Nearly 609,000 SF in Q1 2024
  • Under construction: 1,734,262 SF
  • Notable properties under construction: Legacy Union – Phase IV, East West Station, The Pearl – Education Tower, The Thread 
  • Largest submarkets: Uptown/CBD, I-77/Airport, I-485 South, Midtown

Crexi Insights

For the latest updates on the office market in Charlotte, turn to Crexi Insights. Here is the detailed information on recent sales and leasing trends as of June 2024:

For Lease (active)

  • Asking rate/SqFt (median): $29 per year
  • Median SqFt/listing: 2,208 SF
  • Days on market: 299
  • Total listings on Crexi: 842 spaces

For Sale (active)

  • Median asking price: $1.81 million
  • Price/SqFt: $310 
  • Asking cap rate: 7.0%
  • Days on market: 116
  • Total listings on Crexi: 38

Sales Comps (past 12 months)

  • Median sold price: $610,000
  • Sold price/SqFt: $305
  • Total sales volume: $200 million
  • Sold cap rate: 6.0%
  • Median SqFt sold/transaction: 1,634 SF
  • Days on market (median): 208


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Charlotte Retail Market

Charlotte's retail market is experiencing unprecedented demand, with the availability rate at an all-time low and retail rents rising significantly in multiple submarkets. The opening of new restaurants and stores, including IKEA and several new JP Morgan bank branches, is generating considerable optimism. However, the market faces challenges from big chain store closures and financial difficulties in regional malls, presenting both hurdles and opportunities for investors and businesses.

Market overview (Lee & Associates Q1 2024 Charlotte

  • Inventory: 152,092,085 SF
  • Vacancy rate: 2.7%
  • Net absorption: 1,317,222 SF (12 month through Q1 2024)
  • Under construction: 698,224 SF
  • Top lease transactions by tenant: Where Ya Bin, Burlington, IKEA South Charlotte
  • Top sale transactions by property: Afton Ridge $49.2 million, Toyota North Charlotte $19.8 million, Shopton Square $6.4 million

Crexi Insights

Lease and sales trends from Crexi Insights (as of June 2024):

For Lease (active)

  • Asking rate/SqFt (median): $28 per year
  • Median SqFt/listing: 2,680 SF
  • Days on market: 230
  • Total listings on Crexi: 470 spaces

For Sale (active)

  • Median asking price: $2.68 million
  • Price/SqFt: $423
  • Asking cap rate: 6.0%
  • Days on market: 120
  • Total listings on Crexi: 61 

Sales Comps (past 12 months)

  • Median sold price: $2.52 million
  • Sold price/SqFt: $317
  • Total sales volume: $238 million
  • Sold cap rate: 6.0%
  • Median SqFt sold/transaction: 4,436 SF
  • Days on market (median): 147


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Charlotte Multifamily Market

The Charlotte multifamily market saw some softening in operating conditions towards the end of last year, with a slight rise in vacancy rates and a modest dip in asking rents. Increased completion levels and a robust construction pipeline will create a substantial influx of new units this year. Despite these challenges, net absorption improved significantly yearly, reflecting the ongoing demand for multifamily housing in the area.

Market overview (Northmarq 4Q23 Multifamily Market Insights Report)

  • Total housing units: 1,166,880
  • Multi-unit inventory: 256,714 units
  • Vacancy rate: 7.3%
  • Average asking rent: $1,578
  • Annual rent growth: 0.5%
  • Units delivered: 13,307 (YTD 2023)
  • Under construction: 29,785 units
  • Recent transactions: MAA Optimist Park ($107 million), The Retreat at McAlpine Creek ($81.5 million), Greys Harbor Lake Norman ($72.5 million), The Mason at Six Mile Creek ($69.2 million)

Crexi Insights

Here are the most recent Multifamily Insights from Crexi (as of June 2024):

For Sale (active)

  • Median asking price: $982,000
  • Asking cap rate: 6.0%
  • Days on market: 237
  • Total listings on Crexi: 14

Sales Comps (past 12 months)

  • Median sold price: $350,000
  • Sold price/SqFt: $50
  • Total sales volume: $529 million
  • Sold cap rate: 5.1%
  • Total SqFt sold: 947,000
  • Days on market (median): 236


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Get more in-depth Charlotte market data with Crexi Intelligence.

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