Charlotte Industrial Market Report

Leasing trends remain bifurcated. Population and job growth continue to fuel a strong retail environment in Charlotte, driving the need for supply chain expansion and supporting last-mile delivery and warehouse demand. At the same time, vacancy remains well above pre-pandemic norms following a surge in construction, with the metro adding an average of over 10 million square feet of space during the past four years. While demand among larger spaces remained steady in early 2026, churn in pre-2000-built 10,000- to 50,000-square-foot spaces continues to weigh on overall net absorption. This is particularly true for the warehousing segment, where spaces over 50,000 square feet noted a strong rebound in demand in early 2026, while smaller spaces continued to see net relinquishment. Looking ahead, a slowdown in new supply — projected to fall below 4 million square feet in 2026, with few warehouses — may bring relief to small-bay properties. Nevertheless, recent leasing activity suggests that newer spaces over 50,000 square feet are the primary beneficiaries.