Q3 Review: CBD Office
Vacancy rates decrease as construction completes and tenants begin to occupy space at the Legacy Union and The RailYard.
October 23, 2019
- Vacancy rates decrease as construction completes and tenants begin to occupy space at the Legacy Union and The RailYard. Bank of America has only absorbed 2 floors of its 22-floor lease, and will be joined by other tenants like KPMG, Parker Poe, and Gilbane Construction in the new tower. As for The RailYard, large spaces have been absorbed by Allstate, WeWork, and Ernst & Young.
- Uptown sees record high absorption through Q3 as a result of large move ins at Legacy Union II and Charlotte Plaza (Lowe’s Companies 200,728 sf lease). Absorption will continue its trend upward as firms like Honeywell and Ally Financial expand and relocate through 2020.
- Highwoods re-entered the Charlotte market with their $436 purchase of Legacy Union II (620 S Tryon). Bank of America is quickly filling up the tower and Highwoods is looking for more opportunities.
- Midtown / South End Class A rents are on the heels of Uptown, with some Q3 spaces surpassing Uptown rents. Tabbed as a vibrant and livable urban submarket, tenants continue demanding CBD office space while opting for a more amenity-focused and livable submarket.