Charlotte, North Carolina, is in the midst of a construction boom. Projects underway total more than 6 million square feet — a new record for the Queen City. But while some fear developers are overbuilding, the amount of demand for Charlotte’s offerings says otherwise.

Charlotte has been among the most in-demand office markets in the country. Of the 6 million square feet underway, more than 60% of it is preleased and nearly every speculative development has secured an anchor tenant. For instance, Deloitte took 90,000 square feet in Legacy Union Phase II, Honeywell took the entire 280,000-square-foot Legacy Union Phase III, and Ally Financial took the remaining 325,000 square feet in its namesake 740,000-square-foot tower, Ally Charlotte Center.

Many of the projects that do have a considerable amount of space still available aren’t due for completion until 2021 or later, leaving plenty of time for developers to secure tenants and avoid such increases. For perspective, if all of the available space underway were to be completed tomorrow, vacancies would increase about 200 basis points, to 9%. However, that rate is still below both the national index and Charlotte’s historical average.

While Charlotte as a whole should be able to withstand the upcoming wave of supply, certain districts may be impacted disproportionately. The majority of new development is concentrated in Uptown and South End, as these two areas account for roughly 70% of the inventory underway. If developers were unable to secure tenants here, vacancies in these nodes could take a harder hit.

But those locales have seen plenty of leasing momentum as of late, particularly in newer, high-end offices. They also boast robust live-work-play neighborhoods that office tenants and workers gravitate to. The flood of relocations and expansions has largely been centered in these areas, and that trend is expected to continue.