Charlotte Industrial Investment Forecast
Charlotte Emerges as a Southeast Industrial Hub, Generating Robust User Demand for Modern Space
Distributors eagerly expand footprints in North Carolina. Industrial properties in the metro are benefiting from a rising local populace and Charlotte's proximity to other fast-growing Sun Belt cities. Together these factors are bolstering user demand for last-mile distribution centers and larger warehouses. Additionally e-commerce sales in the region are growing rapidly fueled by high-income job growth and the pandemic's effect on consumer behavior. Consequently the metro's construction pipeline is well leased highlighted by Amazon and Home Depot committing to a combined 1.5 million square feet at upcoming buildings near Interstate 77 and the state line. Sparse availability among newly-built facilities will steer more expanding users to vacant existing properties as well as those with upcoming lease expirations during 2022. Heightened competition for these buildings and higher-end space is set to lift asking rents for the 11th consecutive year and trim vacancy to its lowest level since 2018.