Industrial Submarket Reports

Q1 2022

OVERVIEW

The East Market is one of Charlotte’s urban industrial markets comprised of 8.4 million SF of industrial space and spanning a vast geography bordering Charlotte’s CBD and expanding into Meck county portions of Matthews and Mint Hill. 4.6 million SF (55%) of logistics facilities, 1.7 million SF (20%) of specialized manufacturing space and 2.1m SF (25%) flex comprise the market by product category.

DATA, TRENDS AND CONSIDERATIONS

Vacancies are down (1.7%) to a premium. Net absorption in 2021 is roughly 395,000 SF, but has previously been essentially for the last several years. Mirroring the Charlotte metro, rental rates grew nearly 10%, while the $9.80 PSF rate outpaced the metro avg. Supply Side pressure on vacancy and rental rates remain low via a general lack of new product development, while capital markets activity remained consistent with the generally high level of activity across Charlotte.