Infill land at a premium in late stages of cycle in Charlotte
The average cost per acre in 2019 for the combined urban submarkets of Uptown, Midtown and South End is $4.9 million.
May 08, 2019
- The average cost per acre in 2019 for the combined urban submarkets of Uptown, Midtown and South End is $4.9 million. That is a 54% increase compared to 2015 sales. Due to strong tenant demand in for quality space in the urban core, construction activity is red hot in the CBD, where Charlotte ranks fifth national in square footage under construction as a percentage of inventory.
- Over 75% of land sales were within a half mile of a Lynx light rail station, putting a premium on transit-oriented development to support a dynamic and changing demographic and labor base.
- Development has been significant during this cycle. From 2015-2019 the Charlotte CBD has delivered 1.6 million square feet of office and mixed-use product, with another 2.7 million s.f. in the pipeline. This totals 6% of total inventory. The development community has put an emphasis on mixed-use development as these key urban submarkets have successfully become more walkable, amenity-focused and pedestrian friendly. Look for this trend to continue well into 2019-2020.
Source: Real Capital Analytics, JLL Research