Charlotte less exposed to sublease surge
Office space re-entering market at rates lower than Sun Belt peers
October 12, 2020
- The ongoing financial and health crisis has led to most office space in the Charlotte market sitting empty until tenants return. However little of that space has entered the market thus far.
- The Charlotte market has only added an additional 263,736 s.f. of vacant sublease office space between the end of Q1 and the end of Q3. This represents an increase of sublease vacancy from 0.5% to 0.9%.
- Sublease space is more clustered in suburban submarkets rather than the CBD. Over 81% of all sublease space is in suburban submarkets (477,391 s.f.).
- The average sublease space in the Charlotte market is 9,317 s.f. (7,830 s.f. in the CBD and 9,742 s.f. in the suburbs).
- A diverse variety of industries have vacated and offered sublease spaces. The Construction, Machinery, & Materials industry leads with 21% of all vacating tenants, followed by Professional and Business Services (18%), and Finance (18%).