Office Submarket Reports

Q1 2022

OVERVIEW

Back office and call center operation centers, large corporate HQ and regional campuses, a large medical user presence and higher learning / research facilities are the backbone of the University office submarket and bolstered by it’s light rail access and UNCC expansion. 9.4 million square feet of total inventory is relatively dated by Charlotte metro standards, and the result has been slow but steady positive absorption amidst this relative lack of new construction projects over the last 10+ years. Bucking this development trend is Centene’s 780,000 SF regional facility currently under construction, while absorption will be (perhaps adversely) affected by Shorenstein’s redevelopment of a 450,000 former IBM flex space and Escent Research park, which delivered in May of 2021.

DATA, TRENDS AND CONSIDERATIONS

Key market indicators (Vacancy, Avg. Rent) leave University behind Charlotte metro averages. The $27.00 psf average rental rate in University lags behind the market wide number of $30 psf, despite it seeing above average rate growth when comparative to metro wide data. market number. The Vacancy rate of 15% is higher than the 11.8% market wide avg. Value add investment players have seen success in University and continue to be the foundation for capital markets activity and transaction volume, which in the past year saw 18 total deals and a $244 avg price PSF.