Industrial Submarket Reports

Q1 2022

OVERVIEW

Sugar Creek is one of Charlotte’s urban industrial markets comprised of 10.7 million SF of industrial space and located in close proximity to Charlotte’s Central Business District. Of the 10.7 million SF, it is further comprised of 8.1 million SF (76%) of logistics facilities The 2.1 million SF (20%) of specialized manufacturing space and 550,000 SF (5%) flex. Similar to other urban industrial markets, Sugar Creek is experiencing a lack of supply-side pressures on vacancy or rent as re-development to office and mix used continues, and does not project to subside.

DATA, TRENDS AND CONSIDERATIONS

Vacancies are down (4%). Net absorption in 2021 is roughly 95,000 SF, a favorable indicator for a submarket which had previously seen negative absorption of roughly 500,000 SF over the prior five years. Mirroring the Charlotte metro, rental rates grew nearly 10%, while the $8.40 PSF rate outpaced the metro avg. Capital markets activity remained consistent with the generally high level of activity across Charlotte.