Industrial Market Report: Charlotte
The industrial market ended the year on multiple high notes and is set for a great 2019. All indications point to a strong market poised for additional growth.
• Rent rates are at consistent highs
• Below average vacancy
• Positive absorption each quarter
• High mark for new construction in Q4
Absorption was highest in York County followed by the North, Airport, and South submarkets in order. Average rent rates climbed to a new high at $5.57 PSF, approximately a 35% increase since 2011. Sales remain strong with limited available product and high demand. Vacancy in the 25,000-100,000 SF buildings is much lower than the overall market at 2.8 percent while 1 million SF buildings hold 43% vacancy. Newer construction , increased land values, and demand are pushing sales north of $100 SF. At 12520 General Drive, Lineage Logistics bought 197,623 SF at $103 PSF in Q4. Higher sales prices are squeezing investor cap rates with average sales prices $80 PSF and cap rates averaging 6.4%.
Data source: Colliers International_2018 Q4 Industrial Market Report Charlotte