Industrial Submarket Reports

Q1 2022

OVERVIEW

Freedom Dr is the Charlotte Metro’s smallest industrial submarket, containing just 1.6 million SF of industrial space. Logistics facilities account for 81% of supply, around 1.3 million SF. The local inventory pool is rounded out by 150,000 SF of specialized space and 64,000 SF of flex space.

DATA, TRENDS AND CONSIDERATIONS

I-277 / 30th vacancies have the highest vacancies in the Charlotte Metro at 6.3%, and the only one with vacancy on the rise. Thus the submarket has experienced negative net absorption averaging nearly -70,000 sf per year for the last five. Despite rising vacancy, rental rates grew nearly 9%, while the $8.70 PSF rate is slightly above market avg. Capital markets activity consistent with recent annual performance, with just a handful (5) of trades occurrent in the last year.