Charlotte Industrial Figures Q4 2022

January 18, 2023

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  • Quarterly net absorption of 2.5 million sq. ft. was recorded in Q4 2022, pushing the annual total to 8.6 million sq. ft., both record figures.
  • Development activity remained elevated with 12.4 million sq. ft. underway to close the year. Most of the projects consist of bulk warehouse space outside Mecklenburg County or shallow bay buildings located in the core Charlotte market area. Material shortages and long lead times continue to cause delays in construction for base building and interior upfit work.
  • Nearly 2.5 million sq. ft. was completed in the fourth quarter, with 67.6% of the space pre-leased. Of the 12.4 million sq. ft. currently under construction, 42.8% is already pre-leased. Continued build-to-suit activity further supports confidence in Charlotte industrial.
  • The overall average asking rate increased 5.8% quarter-over-quarter to $8.38 per sq. ft. NNN, up 13.7% compared to the figure posted at year-end 2021. Strong rent growth is expected to continue into the new year.
  • Capital markets activity has slowed over the last several months due to interest rate increases and overall uncertainty. However, pricing remains strong for the projects that have traded.