Charlotte Office Investment Forecast
Uncertainty Not Discouraging Builders or Buyers;
Arrivals and Cutbacks Engender Clashing Effects
Developers amplify speculative construction, noting a plethora of firm relocations. Over the past several years, multiple companies have established regional headquarters in Charlotte, including Centene Corporation and Credit Karma most recently. Restrictions elsewhere are prompting additional firms to consider lower-cost, smaller floorplans in Charlotte, where businesses such as Honeywell are bringing employees back on a hybrid basis. This corporate in-migration is inciting developers to ramp up completions this year, building on last year's sharp rise. The robust construction pipeline will apply upward pressure to vacancy and limit Class A rent growth in the short term despite high levels of employment growth. Aside from the fully leased, 1 million-square-foot Duke Energy Tower, many of the next-largest projects slated for delivery in 2022 are speculative, with the Duke property representing a 60 percent reduction in the company's footprint.