Office Submarket Reports

Q1 2022

OVERVIEW

The Plaza Midwood/NoDa Submarket in Charlotte is a midsized submarket that contains around 3.1 million SF of office space. It sits due east of the Central Business District, a major arts and entertainment district experiencing significant transformation and (re)development. Often looked to as a possible high-growth office market, this hypothesis has yet to materialize, but it may be a matter of time as employers understand the younger labor force values live, play work opportunities.

DATA, TRENDS AND CONSIDERATIONS

The vacancy rate (27%) rose significantly last year amidst new product delivering during the COVID-19 pandemic, resulting in negative net absorption ( -170,000 SF) Pre pandemic numbers posted positive net absorption of about averaging 41,000 sf per year. Avg rental rates ($28 psf) increased by 1.5% over the past year, slightly below Charlotte metro averages and office.