Industrial Submarket Reports

Q1 2022

OVERVIEW

Logistics and Flex properties largely comprise the Mecklenburg Line submarket as the 5.6 million SF of total product in this submarket located in NE Charlotte and Mecklenburg County. More specifically, logistics facilities account for over half (54%) of the inventory and the 1.4 million square feet of flex space represents 25% of total product in the Mecklenburg Line submarket.

DATA, TRENDS AND CONSIDERATIONS

An essential lack of new development, contracting inventory and negative absorption contribute to this being one of the least active from an investor and capital markets activity standpoint. Vacancy (2.6%), then not surprisingly was down over the past year while rents in turn grew 9.8%. At $10.50/SF, rents in Mecklenburg Line are considerably above the metro average which is good news for landlords as this trends projects to continue amidst the lack of supply-side pressures on vacancy or rent in the near term, as nothing is underway and this submarket actually contracting in overall supply.