Professional Documents
Culture Documents
Year-over-Year Change
Healthy demographics support growth in retail sales, boding well for indus-
4%
trial property performance. Strong in-migration and household formation is driving
retail sales considerably above the national average in Charlotte, spurring demand for 0%
industrial space metrowide as companies meet the needs of growing residents through
last-mile distribution. Many firms leased-up space during the first half of 2018, including -4%
Ross and Saddle Creek, a distributor for many large retailers such as Del Monte Foods
and Sam’s Club. Strong tenant demand has driven considerable net absorption, bod- -8%
08 09 10 11 12 13 14 15 16 17 18*
ing well for vacancy improvement over the last several years. The rate has plummeted
more than 850 basis points from the previous cyclical peak and the downward trend will
continue through year end. Tightening vacancy has driven a need for quality space and Industrial Supply and Demand
construction is picking up this year. While many built-to-suit buildings will be placed into Atlanta Completions
Office: Absorption Vacancy Co
service, including a 600,000-square-foot distribution center for Staples, several specu- 8
Michael Fasano First Vice President/Regional Manager 16% Mi
Vacancy Rate
(678) 808-2700 | michael.fasano@marcusmillichap.com (21
Industrial assets in southwestern locales are increasingly targeted. Healthy 0 8%
property performance continues to draw investor interest to Charlotte. The number of
industrial assets changing hands picked up 8 percent during the year ending in the sec- Austin
-4 Office: 4%
ond quarter. Increased bidding for available assets lifted property values roughly 25 per- Da
cent during this same time to $100 per square foot. Properties in southwestern Charlotte Craig-8Swanson Vice President/Regional Manager
0%
9600 North08Mopac
09 10Expressway,
11 12 13 Suite
14 15300
16 17 18* Tim
were popular, with assets near Tyvola Road and in proximity to the airport particularly Austin, TX 78759 500
targeted. Here, transaction velocity picked up considerably from the prior annual period, (512) 338-7800 | craig.swanson@marcusmillichap.com Dal
lifting prices more than 20 percent from the previous year. Buyers also targeted ware- (97
Asking Rent Trends
houses in Union County, with trades picking up in the area during the past 12 months. Baltimore Office:
Metro United States
Fo
Matthew
12% Drane Regional Manager
100 E. Pratt St., Suite 2114
Year-over-Year Change
Ky
Baltimore,
6% MD 21202 300
Tel: (443) 703-5000 | bryn.merrey@marcusmillichap.com (81
Boston
0% Office:
2018 Market Forecast Tim Thompson Regional Manager
De
-6%
Employment Approximately 30,000 workers will be added to staffs in Char- 100 High Street, Suite 1025 Ro
up 2.5% lotte this year after 33,600 jobs were created in 2017. Boston, MA 02110 122
-12%
(617) 896-7200 | tim.thompson@marcusmillichap.com Den
08 09 10 11 12 13 14 15 16 17 18*
(30
Construction Deliveries may reach a cycle high in 2018 as 5.4 million square Charleston Office:
5.4 million sq. ft. feet of industrial space is placed into service. Last year, 4.9 mil- Benjamin Yelm Regional Manager De
lion square feet was completed. * 151 Meeting Street, Suite 450
Forecast
Charleston,
Sources: MarcusSC 29401 Research Services;
& Millichap Ste
Bureau
(843) of952-2222
Labor Statistics; CoStar Group, Inc.; Real Capital Analytics
| benjamin.yelm@marcusmillichap.com
Vacancy Elevated completions will not weigh on vacancy improvement Two
Sou
down 40 bps as the rate ticks down to 5.0 percent amid net absorption of Charlotte Office: (248
6.2 million square feet. Last year, vacancy fell 60 basis points.
Benjamin Yelm Regional Manager
201 South Tryon Street, Suite 1220
Rent Rent growth remains on par with the prior year, reaching $4.38 Charlotte, NC 28202
up 3.8% per square foot in 2018. (704) 831-4600 | benjamin.yelm@marcusmillichap.com
Fo