Industrial Submarket Reports

Q1 2022

OVERVIEW

I-277 Remount is one of Charlotte’s urban industrial markets comprised of just 2.3 million SF of industrial space and located in close proximity just to the SW of Charlotte’s Central Business District. Of the 2.3 million SF, it is further comprised of 1.5 million SF (65%) of logistics facilities, 710,000 SF (30%) of specialized manufacturing space and 93,000 SF (4%) flex. Similar to other urban industrial markets, I-277 is experiencing a lack of supply-side pressures on vacancy or rent as re-development of industrial product to office and mix used continues, and does not project to subside.

DATA, TRENDS AND CONSIDERATIONS

Remount vacancies are largely non-existent, down to just 1.6%. Net absorption in the past year was roughly 13,000 SF, a favorable indicator for a submarket which had previously seen negative absorption of roughly 210,000 SF over the prior five years. Mirroring most of the Charlotte metro, rental rates grew nearly 10%, while the $11.70 PSF rate is the highest in the Charlotte Metro. Capital markets activity remained consistent with the generally high level of activity across Charlotte.