Charlotte Retail Market Report

Low suburban vacancy contrasted by some urban headwinds. Local residential growth has accelerated over the last two years, with much of the in-migration directed to outer suburbs. Retail vacancy is lowest in these areas as a result, with both Stanly and Lincoln counties entering 2025 with sub-1 percent vacancy. Relatively small inventories with few supply additions over the last three years has helped keep these areas almost fully occupied. An escalation of construction may be warranted in the near future to meet local needs. The city center, meanwhile, reported a second year of vacancy expansion that pushed the rate to 11.7 percent last December — the highest level since at least 2007. This upward trend, however, could slow this year. A 90-basis-point reduction in office vacancy during the final quarter of 2024 points to an upcoming improvement in midweek foot traffic. At the same time, net in-migration metrowide could lead to further apartment vacancy compression in the Uptown-South End area, which would further aid demand for nearby retailers.