Charlotte industrial real estate market reports
2Q21 highlights and trends
Industrial leasing activity has remained overwhelmingly positive throughout the pandemic and into 2021. Activity currently sits at 18.3 percent of the long-term annual average of the last 20 years of historical data.
Industrial leasing activity
+18.3% YTD 2021 vs. prior 20-year annual average leasing activity. Industrial leasing for YTD 2021 of 6.2 MSF is up 165% from this time last year. Amazon's recent lease at Carolina Logistics Park was the largest deal of the second quarter.
Investment dollar volume
$1.4B industrial dollar volume, 2020 to Q2 2021. Charlotte experienced an exceptionally strong 2020, despite a pause in national sales activity for all asset classes due to the risk-pricing crisis of the pandemic. Charlotte hit a record-high of $1B in 2020 and produced $382M in closed deals year to date.
Industrial vacancy rate
The Q2 2021 vacancy rate of 7.5% remains healthy relative to the market's 20-year average of 8.1%, even while ticking up slightly over the last two years.
Asking rents softened slightly in the second quarter, but overall have trended upward since 2018. In the near-term asking rents are expected to continue to increase but at a more moderate pace.
Industrial net absorption
3.4% net absorption as a percentage of inventory, 2020 through Q2 2021. Total net absorption, measured by year-over-year change in physically occupied space, resulted in 775,000 sf at the close of the second quarter. As overall leasing activity continues to trend upward, net absorption will follow suit.
Industrial asset pricing
Pricing for Charlotte industrial assets has continued to increase since the end of 2016, and particularly since the pandemic, as many investors seek exposure to assets that can accommodate the rise of e-commerce distribution.
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