Office Submarket Reports

Q1 2022

OVERVIEW

South Park is mall-anchored suburban office submarket located roughly 5 miles southeast of Charlotte's Central Business District. Favored by small and private professional service firms, boots on the ground hubs for national brokerage and wealth management corporations and several local law and medical practices, its convenience and accessibility to South Charlotte’s affluent residential neighborhoods maintains its health and steady demand. Despite its core of smaller private tenants, it also houses headquarters of Fortune 1000 companies such as Nucor, Albemarle, and Coca-Cola Bottling Consolidated.

DATA, TRENDS AND CONSIDERATIONS

Class A properties comprise 60% of total inventory. A tight supply paired with the steady demand nets South Park's market leading $37 psf avg. rental rate. The vacancy rate of 12.2% is its all-time high, though this increase only leaves the number equal to the balance of Charlotte metro market. High rents and a South Parks legacy of demand high-profile has yielded strong investor interest in the submarket. More than $407 million in transactions closed over the past 12 months, amidst virtually no new recent office development as has also been the case for some time in South Park.