Office Submarket Reports

Q1 2022

OVERVIEW

South End is in the midst of a transformation making it one of the hottest office submarkets in the United States. Adaptive reuse of former warehouse and textile mills appear on nearly every corner, while cranes dot the skyline amidst the multiple and ongoing office tower developments currently under construction. Such projects have lured a type of high-profile tenants once exclusive to the CBD such as Grant Thornton, Dimensional Fund Advisors, LendingTree, AllState, and Lowe's. This while a long list of private equity backed startups, technology and creative firms have found the hidden gem loft space that’s help define company culture. Employees enjoy access to the light rail the+ live, play, work environment in this submarket also serving as one of Charlotte’s most active nightlife destinations.

DATA, TRENDS AND CONSIDERATIONS

Despite 1.3 million SF of new product delivering, Southend is on of the few submarkets with positive absorption. With an additional 2.1 (21.4% of total inventory) million SF of office on the way, expect rising vacancy rates and pressure on rent growth, which has already slowed amidst the COVID-19 pandemic. National trends continue to favor Charlotte, while Southend aligns perfectly demographic, labor and occupier trends netting strong investor interest in the submarket remains strong despite broader concerns. A whopping $775 million traded hands over the past 12 months, accounting for more than 20% of all sales volume in Charlotte.