Charlotte Office Figures Q4 2022

January 17, 2023

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  • Over 231,000 sq. ft. of negative net absorption was posted during Q4 2022, bringing the annual 2022 figure to 138,000 sq. ft. The Midtown/South End submarket showed resilience as one of the only submarkets to post positive quarterly activity.
  • Overall average asking rents grew slightly quarter-over-quarter to $32.81/per sq. ft. FSG. Midtown/South End continued to command the highest rates, where Class A average asking rents approached $45.00/per sq. ft., highlighting flight-to-quality as a continued trend.
  • Leasing activity slowed, with nearly 513,000 sq. ft. of volume transacted during the fourth quarter. This brings the annual 2022 volume to 3.6 million sq. ft., an encouraging figure in the face of rising vacancy.
  • The development pipeline remained elevated, with just over 2.6 million sq. ft. of office space underway at the end of the year. Of the total, only 10.4% was pre-leased. Four projects delivered this quarter totaling 1.3 million sq. ft, with 84.4% of the space pre-leased.
  • Despite relatively reduced investment sales activity in Q4 2022, annual sales volume reached over $1.3 billion, which nearly mirrors the rolling ten-year average.