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

Vacancy essentially does not exist, currently at a mere 1.0%. This number has also slightly declined over the past year, thus net absorption flat. Longer term trends points to weak demand and slightly negative absorption over a five year period, largely attributable to reduced inventory amidst substantial adaptive reuse projects of former industrial space. While rents grew 8.4% this is below the market norm of 10% annual increased , but Industrial rents in are slightly above the metro average given the very limited supply and unique proximity to the CBD.