Industrial Submarket Reports

Q1 2022

OVERVIEW

By several metrics, the Tyvola Road submarket falls right within the averages represented across the Charlotte Metro industrial markets, and is classified as urban industrial. Total inventory is 10.4 million and logistics facilities comprise the bulk of product class (7 million SF / 70%). However, flex space accounting for roughly 30% is above average for the Charlotte Metro, as is the correlated small percentage of specialty manufacturing.

Vacancy (4%), positive net absorption, rent growth (9.5%) and avg rates PSF ($9.60), again split the goal posts of the Charlotte Metro Industrial market.

DATA, TRENDS AND CONSIDERATIONS

Tyvola road also bucks the trend in Charlotte in terms of new project development and overall market expansion, as inventory has actually contracted over a 10 year period amidst significant demolition. At present there is 180,000 SF (2%) of new product under construction which will expand current market inventory. The forward trend of development will significantly shape, and ultimately define Tyvola Road in the years to come, as this factors drives overall market activity and key indicators such as vacancy, rental rates and capital markets transactions.