Charlotte Market Reports

Charlotte Office Market Report

The Charlotte office market commenced 2022 with demand outpacing supply at a modest level of 120,000 square feet of positive net absorption. This is the second consecutive quarter of steady positive absorption, signifying a possible shift in market conditions as the office sector begins to recover from the impacts of the pandemic. Class A buildings continued to show a modest and more leveled approach between supply and demand, with 13,360 square feet of absorbed space in the first quarter of 2022. The Class B segment led the market with over 106,000 square feet of net absorption, while lower-tier Class C space saw supply just beat out demand. Overall vacant space increased by 40 basis points to close out the first quarter of 2022 at 18.4% and can be attributed to the new office buildings delivered at the start of the year. Notably, overall vacancy increased 320 basis points from one year ago from the combination of available space from new office buildings delivered, coupled with the increased supply of vacant space added as a result from companies downsizing, consolidating and closing office operations due to employees working from home. Despite the market corrections seen over the past two years, asking rate averages continued to tick upward as the Class A and Class B segments saw year-over-year increases.