.ashx?sc_lang=en&bid=4a2e5ebb5bdb40cab633b8e28e053c66)
Net absorption and development activity picked up in Q4 2020 while, industrial investment continued to remain strong throughout the Charlotte Region.
Key Takeaways
- Industrial net absorption picked up in Q4 after posting negative results in the previous quarter. All submarkets, aside from Cabarrus County showed positive absorption in Q4.
- Industrial deliveries remained slow during Q4 2020 as activity paused due to COVID-19. However, development activity has started to pick up with several large projects in the beginning stages such as Beacon Partners’ Carolinas Logistics Park within the Stateline submarket and Strategic Capitals’ Rock Hill Commerce Center in the York County submarket.
- Notable leases executed within Q4 of 2020 include: FedEx taking 641,550 SF within Metrolina Park, Project Bluegrass leasing 460,800 SF and British electric bus manufacturer, Arrival leasing 192,000 SF at LegacyPark East within the York County submarket.
- Walmart purchased the largest speculative building within the Charlotte market, a 1MM SF facility located within the Iredell County submarket, developed by local developer Kathy Godley.
- Industrial investment continues to remain strong as Clarion Partners purchased Metrolina Pak, an eight building portfolio consisting 1.9MM square feet, for $201,000,000 ($105.78 PSF). Additionally, SunCap Property Group sold a recently delivered 230,000 SF distribution building in Mooresville, NC to a private investor and Scannell Properties sold a recently delivered 129,864 SF building, within LegacyPark East, to STAG Industrial.
Summary Statistics
| Q4 2020 Charlotte Industrial Market | Warehouse | Flex |
| # of Existing Buildings | 3,122 | 726 |
| Total Inventory SF | 208,489,019 SF | 26,253,595 SF |
| Vacancy Rate | 7.00% | 6.60% |
| Absorption SF | 2,597,915 SF | 174,519 SF |
| New Construction | 1,693,056 SF | 72,000 SF |
| Under Construction | 1,935,624 SF | 495,027 SF |
| Asking Rents | $6.11 PSF | $12.27 PSF |
A Note Regarding COVID-19 - As we publish this report, the U.S. and the world at large are facing a tremendous challenge, the scale of which is unprecedented in recent history. The spread of the novel coronavirus (COVID-19) is significantly altering day-today life, impacting society, the economy and, by extension, commercial real estate. The extent, length and severity of this pandemic is unknown and continues to evolve at a rapid pace. The scale of the impact and its timing varies between locations. To better understand trends and emerging adjustments, please subscribe to Colliers’ COVID-19 Knowledge Leader page for resources and recent updates.
