Office Submarket Reports

Q1 2022

OVERVIEW

With 15 million SF of office inventory, the Airport submarket presents a wide range of product class, size and vintage. Categorized as a suburban market, Airport enjoys some distinct advantages amongst it’s national peer set, given it’s relative proximity to Charlotte’s CBD, desirable residential neighborhoods, I77 and 485 interchanges and ,of course, Charlotte Douglas Airport. The result is a submarket providing value add and flight to quality opportunities for tenants ready willing to operate outside of Charlotte’s primary urban business center. 

DATA, TRENDS AND CONSIDERATIONS

Vacancies have trended up to 18.5% over the last year, in a submarket where double digit vacancies have been the norm for several years, with overall negative absorption. These numbers are more positive in the Class A product, as is the case with most suburban submarkets. Rent growth slowed to 1.6%, consistent with the halt to pre-pandemic escalation seen throughout the metro and again, more positive in the Class A set. The avg. rental rate PSF ($26.99) is below market ($29.82) with even greater delineation in Class A rents between Airport ($29) and the metro avg ($36). Capital markets indicators such as price per square foot ($219) and total transaction volume (31) are positive, despite lagging behind market avg’s and other core submarkets.