Data trends indicate Charlotte suburbs a prime location for office space, continued expansion
Increasing asking rents illustrate the growing value of Hwy 51/Ballantyne office space
July 17, 2019
- The Hwy 51/Ballantyne submarket has seen a 21% growth in construction since 2015. Waverly, delivered in 2018, has illuminated the growing demand for mixed-use developments offering a range of amenities. Developments feature creative office space, retail and dining outlets, urban apartments, and walkable paths and parks. Multiple suburban markets are capitalizing on urban office and town center demand while eliminating the need to travel Uptown. Ballantyne Corporate Park will follow in the footsteps of Waverly, featuring 25 acres of walkable, mixed-use space.
- Increasing asking rents illustrate the growing value of Hwy 51/Ballantyne office space. In only four years, the average asking rent in Ballantyne has increased almost 30%, compared to the 22% increase in the CBD. Recently, the gap has closed between CBD rents and leading suburban office rents in SouthPark and Hwy 51/Ballantyne. Suburban office space is a growing asset in the Charlotte market, largely due to new mixed-use developments and proximity to high-quality schools and neighborhoods.
- At only 8.8% vacancy, Ballantyne has the lowest vacancy rates across all Charlotte submarkets, followed by CBD at 10.4% and Southpark with 12.7%. This low vacancy proves that suburban office space is in high demand. Many companies are moving into Hwy 51/Ballantyne to maintain an urban work environment while living a suburban lifestyle.
Source: JLL Research