2024 Q4 Charlotte Industrial Market Report
Driven by record supply deliveries and moderating demand, Charlotte region industrial vacancy continued to rise, closing at 8.9% at the end of Q4 2024, up from 8.7% at the end of the previous quarter.
The fourth quarter saw another massive delivery of vacant speculative product. Simultaneously, industrial subleases coming online in 2024 resulted in an overall availability of 11% at the end of the year.
Pull-back in demand has been seen across all sizes and product types. The result is some moderation in rent growth and increases in tenant concessions in the form of rental abatement, improvement allowances and lower annual rent escalators.
Supply pressure should go down in 2025 as projected speculative delivery volume should be materially less than in 2024. That said, we expect vacancy to continue to rise throughout 2025, though at a lower pace. For larger requirements, we expect some landlords will also look at agreeing to rental rates materially discounted from their originally-quoted asking rates.
Download the full report to learn more.