Office Space For Rent Charlotte
Charlotte now leads the nation in annual office rent growth as the North Carolina city has become one of the most in-demand office markets in the nation.
Rent gains of roughly 7.5% over the past year puts the market in front of major technology hubs like Austin, Texas, which posted 6.9% in that same time frame, and San Francisco at 6.8%.
This comes even after years of annual growth north of 5%, with some years reaching 8% rental increases. In fact, since 2014, the average rent for office space in the Queen City has increased by nearly $10 per square foot, a similar increase to that of Austin.
The significant rent increases come as Charlotte emerges as a top-performing office metropolitan area nationwide, which has fueled exceptional growth in its premium office inventory. Companies such as Truist Financial and Bank of America have announced major moves into high-quality towers located in uptown Charlotte. Meanwhile, Honeywell, Lowe’s and LendingTree have signed for space in premium buildings that are still in the process of being developed.
With this uptick in demand for quality office space, it makes sense that the most pronounced rent increases have been in the higher-end four- and five-star properties.
These higher-end properties typically command more than a 20% premium over the market-wide average, putting rents at about $35 per square foot gross. High-end properties have posted annual increases of more than 7% for five consecutive years now.
Office rents at the new South Tryon Street development, Ally Charlotte Center, start at $39.75 per square foot full service gross. The 750,000-square-foot tower is already preleased by Ally Bank, which is expected to move into 400,000 square feet upon completion in 2021.
Although rents are still increasing at a fast pace, rent growth is decelerating. This time last year, annual rent growth was more than 8%. The heightened gains that have been posted in years past are unsustainable long term, and are expected to continue to moderate, albeit slowly.
Great Costar Article by JESSE MCCONNICO on Charlotte Office Space! Thank you Jesse!
