Charlotte’s industrial construction boom is accelerating, with activity up roughly 129% from a year ago.
That was the largest year-over-year increase among Southern markets tracked in CommercialCafe’s latest national industrial report.
As of August, developers had 10.17 million square feet of industrial space under construction across Charlotte.
That gave the metro the eighth-largest construction pipeline among major U.S. markets included in the report.
One major project helped push the total higher. Digital Charlotte Moores Chapel Road’s Building 2 added about 1.57 million square feet.
However, Charlotte is also carrying a relatively high industrial vacancy rate.
The metro’s vacancy rate reached 11.1%, compared with 9.3% nationally.
Industrial rents averaged $7.97 per square foot, while newly signed leases averaged $9.09.
Investors also remain active across the region.
Charlotte recorded roughly $1.23 billion in industrial property sales through August.
Properties sold for an average $140.71 per square foot, slightly above the national average.
The numbers show developers remain confident in Charlotte’s long-term growth.
However, the combination of rising construction and an 11.1% vacancy rate will be important to watch as more space opens.
