Charlotte Retail Market Report

Expansions deplete available space in several submarkets. Charlotte tied for the largest drop in vacancy among major U.S. markets in the first half of 2023, compressing the metro’s rate to an all-time low of 3.3 percent. During the span, demand quadrupled supply additions, as retailers absorbed 1.2 million square feet, the largest total among major southeastern markets . Expansions were widespread, with Cabarrus County and Outer Southeast each hosting historic demand, along with 13 of the 18 other submarkets noting positive net absorption. Broad, positive leasing trends bode well for rent growth, following a 4.3 percent gain in the mean marketed rate over the year ended in June. Much of that momentum will come from eight submarkets that reported record-low vacancy rates in the second quarter. This group included Cabarrus County and East Charlotte, the metro’s first- and third-largest areas by inventory.