Colliers Charlotte Year-End Report | 2023 Industrial Review
After a slow first quarter, 2023 quickly rebounded and became another positive year for the Charlotte industrial market. Demand for space below 150k SF remained high, leading to consistent rent growth marketwide. New bulk supply and slower bulk leasing activity caused the vacancy rate to climb, although it is still low considering historical trends.
Expect the vacancy rate to fall heading into 2024 as more of the recently delivered bulk product gets absorbed. Several developers took note of the slowdown in bulk demand and changed their designs to feature smaller, more easily divisible spaces. Investor demand continued where it left off from 2022, as four high profile industrial sales closed in the fourth quarter alone. Macroeconomic conditions improved during the fourth quarter, as the 10-year treasury fell 74 basis points from Q3. Financial analysts are predicting multiple rate cuts throughout 2024, which should lead to increased activity across the Charlotte industrial market due to increased confidence amongst investors, developers, and tenants alike.
Read the full report.