Charlotte Retail Market Report

Construction pipeline narrows. Heading into the back half of 2025, Charlotte maintained one of the eight lowest vacancy rates among major U.S. metros. While move-outs, primarily in late 2024, placed upward pressure on vacancy over the past year ended in June, positive net absorption was recorded in the second quarter of 2025. Despite a historically low 4.7 months to lease in the second quarter and modest gains in gross absorption over the past year, elevated construction costs and high interest rates have kept speculative developers on the sidelines. As of July, only roughly 250,000 additional square feet of retail space was slated to deliver through year-end — less than one-half of the trailing 10-year semiannual average.