The office space market has been undergoing a significant change: It used to be dominated by traditional office spaces, but now there’s an increasing demand for the use of technology, modernized office spaces, remote and hybrid working environments, and innovation.
Office space in Charlotte has adapted to these changing times quickly.
We’ll analyze the Charlotte, NC, real estate market by looking at market trends, risks, and opportunities for buyers and sellers.
Charlotte Commercial Office Space Highlights
Charlotte is a dynamic city with lots of potential for commercial real estate development. It’s relatively affordable compared to some other markets.
Highlights in this Charlotte, NC Office Space Report includes:
- Charlotte is an expanding city with a 3 percent annual growth rate.
- Midtown commercial office rents average $36.65 per square foot.
- Charlotte’s quarterly rental growth rate was the fourth highest in the nation.
There are many opportunities available for CRE investors who want to get involved in commercial real estate in Charlotte.
Office Space Rent Changes in Charlotte
The current national vacancy rate for office space is 15.4%. The vacancy rate in Charlotte is lower than this:
- The average asking rental rate in Charlotte is $29.23 per square foot.
- The average office rental rate for Class A space in downtown Charlotte is $31.2 per square foot.
- The office occupancy rate in Charlotte is 12 percent.
It’s also a relatively affordable, small town on a growth trajectory. As a result, the vacancy rate should continue to fall.
Long View Rent Outlook in Charlotte
As Charlotte’s downtown continues to grow, so does its need for more offices.
Since the early 2000s, rents in this part of the country have been rising steadily. One of the main reasons why this is happening is because there’s an increase in the number of companies looking to move into the city.
Suppose you’re an investor interested in buying commercial real estate in Charlotte. In that case, you’ll have a better chance of success if you look at investing early and benefiting from your long-term investment over time.
Short-Term View on Office in Charlotte
Many different variables influence the cost of office rentals. These include the availability of space, construction prices, occupancy rates, and the overall state of the local market.
You can usually get better deals if you’re willing to look farther out from downtown.
Over the last few years, in Charlotte, North Carolina, real estate has been experiencing steady growth.
Because of this, office rents have risen dramatically in the area. Moreover, recent employment growth and an expanding technology sector have helped fuel this trend.
Forecast for the Rest of 2022
The future for the Charlotte office space looks bright. This can be attributed to the positive economic climate in the city, which will continue to fuel demand.
Charlotte’s emphasis on innovative ideas and educational opportunities, combined with its significant business and financial hub location, will help drive this growth.
Investors have been very busy in Charlotte, and this activity is expected to continue.
New building construction has been experiencing steady growth. One of the main reasons for this increase in investor attention is Charlotte’s strong economic performance.
Final Thoughts
You need to consider a few factors before deciding whether to invest in an office in Charlotte.
Short-term office rents will remain positive, driven by low vacancies and strong demand. Over time, the overall outlook for office markets is positive.
Investors will likely continue focusing on this sector in Charlotte because of its high growth potential. However, although space needs are rising and tenant demand is high, there still needs to be more suitable commercial property.
The uptown and midtown districts are experiencing above-average rents and potential for growth.
Several factors will influence Charlotte’s need for new offices over the coming years.
The market in Charlotte, North Carolina, is one of the most dynamic in the nation. As residential and commercial property investment booms, Charlotte has become increasingly well-known for its ability to attract real estate investors.
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