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Q2 2024 – Office
01
Office-using Employment Growth
Asking Rent and Availability
Leasing ActivityKey Statistics
Outlook
02
03
In Q2 2024, availability in the Charlotte market totaled 24.6%, up 160
basis points (bps) year over year from 23.0%. Despite the increase,
developers continue to bring new office product to the market, such
as 110 East Street in the highly sought after South End submarket
which delivered this quarter. This new Class A building brings
370,000 square feet (sf) of office space to the market, none of which
has been preleased yet. Currently, there is 1.9 million square feet
(msf) of office space under construction, with only 10.0% preleased.
Looking ahead, expect developers to remain reserved on breaking
ground for new office projects as availability remains high and the
economy uncertain during an election year.
Rental rates increase despite the market remaining highly
tenant-favorable
Charlotte’s overall rental rate in Q2 2024 experienced a 3.1% annual
increase to $32.92 per square foot (psf). As the flight to quality trend
continues, tenants look to occupy Class A spaces that offer high-end
finishes and tenant amenities. This has caused the overall Class A
rental rates to increase by 3.3% year over year to reach $35.76 psf.
Despite rising rents, record amounts of concession packages are
being offered to tenants.
Office conversions on the rise in Uptown Charlotte
As office availability rises in the Queen City, many developers and
local leaders seek to find a solution by converting Class B/C older
generation office buildings into mixed use residential and retail
projects. In the second quarter, two major office conversions were
announced in Charlotte’s CBD. The historic 100-year-old Johnson
Building was sold in May for $19.3 million. The once 172,000-square-
foot office building is expected to be converted into a boutique hotel
concept. Another project announced that is expected to begin
construction late this year is the $250 million Brooklyn & Church
development to convert Duke Energy’s 1970s headquarters into
apartments and retail next to the Bank of America Stadium.
Charlotte
Q2 2023 Q2 2024 Y-O-Y
Inventory 66.5 msf 66.2 msf -0.3 msf
Availability Rate 23.0% 24.6% +160 bps
Asking Rental Rate $31.93 $32.92 +3.1%
Class A Asking Rental Rate $34.63 $35.76 +3.3%
Quarterly Leasing Activity 0.5 msf 0.6 msf +0.1 msf
Available Sublease Space 3.1 msf 2.8 msf -0.3 msf
Charlotte is expected to remain a highly
desirable Southeast market with strong
office space demand, driven by its
diverse industry base, lower cost of
living, and growing workforce
Tenant-favorable conditions are likely to
maintain throughout 2024, as space
availability remains heightened and
some landlords face loan distress
Leasing activity of spec suites is
expected to continue to increase as
tenant demand for turnkey space
remains high
Office-using job growth y-o-y Office-using job growth y-o-y (%)
Non-farm job growth y-o-y (%)
Average asking rental rate
Class A average asking rental rate Class A availability rate (%)
Total availability rate (%)
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
-30
-20
-10
0
10
20
30
2019 2020 2021 2022 2023 2024
Number of jobs (thousands)
0.0
0.5
1.0
1.5
2.0
2.5
2019 2020 2021 2022 2023 2024
Square feet (millions)
Availability continues to rise as new Class A
office space delivers
5-year quarterly average
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
$40.00
2019 2020 2021 2022 2023 2024
Unless otherwise noted, all rents quoted throughout this report are average asking gross (full
service) rents per square foot. Statistics are calculated using both direct and sublease information.
Current and historical availability and rent data are subject to change due to changes in inventory.
The information in this report is obtained from sources deemed reliable, but no representation is
made as to the accuracy thereof. Unless otherwise noted, source for data is Savills Research.
Copyright © 2024 Savills
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Savills Charlotte
227 West trade Street,
Suite 1450
Charlotte, NC 28202
+1 704 831 3488
Charlotte Q2 2024 - Office
For more information,
please contact us:
Audra Laskey
Research Associate
alaskey@savills.us
Tucker Shade
Executive Vice President
Branch Manager
tshade@savills.us
Availability Rate Comparison (%)
CHARLOTTE SUBMARKETS
Rental Rate Comparison ($/sf)
CHARLOTTE SUBMARKETS
Top Transactions
Source: Savills Research
*Trophy Building **Sublease
$26.69
$27.22
$28.38
$29.32
$30.06
$32.92
$35.50
$36.91
$37.51
$38.53
$41.69
$0.00 $10.00 $20.00 $30.00 $40.00 $50.00
University / Northeast
South Carolina
Airport / West
Park Road
East Charlotte
Charlotte Overall
Ballantyne / Highway 51
Randolph Rd / Cotswold
CBD
SouthPark
Midtown / South End
30.7%
27.6%
27.0%
26.5%
25.3%
24.6%
22.8%
17.1%
14.4%
9.9%
6.6%
0.0% 10.0% 20.0% 30.0% 40.0%
Airport / West
Ballantyne / Highway 51
CBD
University / Northeast
South Carolina
Charlotte Overall
SouthPark
Park Road
East Charlotte
Midtown / South End
Randolph Rd / Cotswold
TENANT INDUSTRY SUBMARKET ADDRESS SIZE (SF) TRANSACTION TYPE
Quint Events
Personal Services and
Recreation
University / Northeast 9335 Harris Corners Parkway 28,278 Renewal & Expansion
Powers Engineers Inc
Architecture, Engineering
and Construction
South Carolina 1041 Red Ventures Drive 26,045 Renewal
Levine Foundation
Associations & Non-profit
Organizations
Park Road 4600 Park Road 24,134 New Location
CPL
Architecture, Engineering
and Construction
Midtown / South End 3600 South Boulevard 19,925 New Location
Alliance Health Healthcare University / Northeast 8520 Cliff Cameron Drive 18,125 New Location
Brown Brothers Harriman
Financial Services
and Insurance
Midtown / South End 1945 E 7
th
Street 17,500 New Location
Progressive Companies
Architecture, Engineering
and Construction
East Charlotte 1801 N Graham Street 16,500 New Location
Collett & Associates Real Estate Randolph Rd / Cotswold 1111 Metropolitan Avenue 15,888 Renewal
Little Legends ABA Therapy Healthcare East Charlotte 8525 Crown Crescent Court 15,000 New Location
Synechron
Business, Professional
and Consulting Services
CBD 214 N Tryon Street 13,356 New Location
