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Market Report

Charlotte Office Market Report

2Q 2023

Development Mostly Omits the CBD as Office
Tenants Look to Suburbs More Frequently

Submarket duo stands out. Midtown and East Charlotte each had more than four straight quarters of positive net absorption up to this April, easing local vacancies amid a rise metrowide. This exemplifies a recent trend of traditional office-using firms relocating from the CBD to more suburban zones. The growing prominence of hybrid work has prompted some companies to better retain and attract local talent by situating closer to residential hubs and entertainment. That holds this year, as a few large law firms leave downtown offices for Midtown. Smaller 2023 pipelines set for here and East Charlotte also aid local, near-term office outlooks. At the same time, Northeast Charlotte hosts the delivery of an 800,000-square-foot untenanted campus. This underscores the volatility that most suburban areas face, offsetting pockets of stronger office metrics. Overall, 80 percent of the suburban pipeline was unleased as of May, with these projects adding upward pressure to vacancy upon completion.

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