Q3 Review: Charlotte suburban office
Class A rents rose in SouthPark to $33.11, while vacancy dropped to 9.5%.
October 30, 2019
- Class A rents rose in SouthPark to $33.11, while vacancy dropped to 9.5%. Major construction projects are underway in SouthPark, highlighted by Apex SouthPark, which will include a 175-room Hyatt Centric hotel with a rooftop restaurant and bar, a 355-unit multi-family development, a new home for SouthPark Church, and over 70,000 s.f. of retail and the City of Charlotte capital improvement plan to make SouthPark more pedestrian-friendly and livable through multiple projects focused on walkability and transportation.
- Highway 51/ Ballantyne experienced an active Q3, adding 198,831 s.f. of new office space with the delivery of Toringdon 7, already 84% leased. Segra, one of the nation’s largest fiber companies, announced their desire to relocate innovation headquarters to a mixed-use development in a walkable, pedestrian-friendly area with an abundance of retail and green space in the submarket. Northwoods Investors plans to add 2,000 multi-housing units, 150,000 s.f. or additional retail space, and 400,000 s.f. or office space.
- Transportation continues to spark interest in the University submarket as rent, absorption, construction, and average lease size are all increasing. Since the close of 2018, rents have increased over $3.00 directly related to the accessibility yet suburban-nature of the submarket. Waters Edge will be the submarket’s first major mixed-use development with office, multi-family, and community gathering space. Allstate Insurance expanded by 40,000 s.f.. As tenant activity increases, and rents rise in core submarkets the draw of the University submarket grows.
Source: JLL Research