First quarter 2011 began with subtle improvements, producing 154,000 square feet of net occupancy gains for Charlotte’s industrial sector and in response, the metro’s vacancy rate fell by 0.1 percentage point, ending the quarter at 14.5 percent. First quarter 2011 saw considerable activity in the ancillary submarkets with several companies announcing expansions, additions, and relocations – reinforcing the positive outlook for the area. Charlotte’s leasing environment continues to be predominantly tenant favorable, but a modest increase in demand is expected in 2011 and the market could see fundamentals begin shifting back toward the landlord’s advantage at the start of 2012.