The rental market turned a corner this month, with prices rising 0.2% nationwide in February and trending up for the first time in half a year. On an annualized basis, rent growth remains negative at -1%, meaning that on average, new leases remain marginally cheaper than they were one year ago. But we expect the coming months to bring steady, moderate rent growth as housing demand improves but is partially offset by new construction.

• Rents in Charlotte fell 0.2% in February, compared to a 0.2% increase nationwide.
• Year-over-year rent growth in Charlotte now stands at -2.8%, down from +4.4% one year ago. Since the start of the COVID-19 pandemic in March 2020, citywide rents have risen a total of 19%.
• Today the median rent in Charlotte is $1,308 for a one-bedroom unit and $1,426 for a two-bedroom unit. And the citywide apartment vacancy rate stands at 7.9%, up 1.1 percentage points from this time last year.

This morning at 11:49 am, a powerful 1.7 magnitude earthquake shook the North Carolina Mountains near Ashville, about 100 miles west of Charlotte.

According to the USGS, the quake had an epicenter of 35.304°N 82.998°W and a depth of 4.8 km.

Earthquakes have been increasing in frequency around the Charlotte region over the past few years. Last year, we experienced the largest earthquake in over 100 years when a 5.1 magnitude quake hit Sparta, NC, and since then, dozens of aftershocks have continued to rattle our state.

According to USGS.gov, “Moderately damaging earthquakes strike the inland Carolinas every few decades, and smaller earthquakes are felt about once each year or two.”

Have you felt any of the quakes? 

Considerable investments in domestic semiconductor and electric vehicle (EV) production are driving an unprecedented surge in manufacturing construction — and the effects of the boom can already be seen in the 2024 industrial development pipeline.

So, CommercialSearch’s newest report highlights the markets with the most new industrial supply underway, as well as the largest properties scheduled for delivery this year.

Here are some of key highlights:

• Charlotte ranks 8^th for the amount of new industrial space currently under development. Roughly 11.5 million square feet of new industrial space is currently under construction.
• This number translates into 3.7% of Charlotte’s current stock to be added through these new industrial developments.
• The other North Carolina industrial market ranking among those with the largest pipelines this year is Raleigh with 8.1 million square feet under construction representing 7.1% of its current stock.
• At a regional level, there are a total of 5 projects from the Southern region among the top 20 largest industrial deliveries of 2024 – 2 from Georgia, 2 from Texas, and 1 from Florida.
• At a national level, there is currently 463 million square feet of industrial space under construction nationwide, representing 2.4% of current industrial stock.

The Charlotte Hornets have just announced plans to spend upwards of $100 million to build a massive new practice facility in the heart of our city.

In a recent Charlotte City Council meeting, Hornets Sports & Entertainment (HSE) unveiled renderings for a $70 – 100 million state-of-the-art practice facility adjacent to the Spectrum Center. This investment drastically shifts the city’s previously allocated $30 million for the practice facility towards enhancements of the Spectrum Center itself.

“Hornets Sports & Entertainment is dedicated to investing in this community and the City of Charlotte, and the development of the new practice facility site is a key aspect in that process,” the Hornets said in a press release. “HSE is committed to fully funding the practice facility costs above the $30 million provided by the city, and we have teamed with longtime Hornets partner Novant Health to offer a destination for leading-edge sports medicine and orthopedic care as part of the mixed-use practice facility development. The new practice facility is the next step as we work toward our vision of building the premier franchise in the NBA and having world-class facilities.”

Info on the #Hornets practice facility 👇 pic.twitter.com/XiXAxd3n90

— Schuyler Callihan (@Callihan_) February 27, 2024

Scheduled to open in 2026, the proposed facility is part of a broader initiative to upgrade the Spectrum Center, discussions of which have been ongoing for nearly two years. In June 2022, the City Council approved a $275 million proposal aimed at revitalizing the uptown arena, including additional seating, upgraded concession stands, and concourse improvements.

HSE’s new financial plan is expected to save the city approximately $5 million, further aligning with Charlotte’s economic development goals. The Hornets’ renovation strategy, outlined in January, is set to be reviewed by Charlotte’s Economic Development Committee in March, with a city council vote on the new terms to follow. This development marks a significant step forward in enhancing Charlotte’s sports infrastructure and the Hornets’ competitive edge.

Southeastern Freight Lines, the leading provider of regional less-than-truckload (LTL) transportation services, announced the opening of an expanded service center in Charlotte.

The contemporary Charlotte service center, located at 4524 Reagan Drive, consists of 230 dock doors. Upgrades include a complete yard rehabilitation and a new remote trailer parking lot. The best-in-class facility is part of a multi-phase redevelopment project that aims to incorporate Southeastern’s latest design standards, such as signature structural elements and interior finishes in addition to network and security features. The facility will embrace new technological advances, streamline operational costs, and, most notably, provide its dynamic team of associates with a modernized work environment to thrive in their various roles.

“The redevelopments at Reagan Drive will not only serve the local Charlotte market but will also increase the efficiency and bandwidth of freight we can push through this breakbulk, which impacts the entire surrounding region,” said Ryan Smigiel, Vice President of Real Estate. “As the Charlotte area is demonstrating exponential growth, we are looking forward to matching this momentum and expanding our operations to continue improving service to our customers.”

The new Reagan Drive service center will house both Charlotte’s pickup and delivery operation and breakbulk operation on an interim basis while Southeastern works to redevelop its second Queen City facility on Amble Drive – a project that will construct a new service center consisting of 185 dock doors, an appointment warehouse with six additional dock doors, a regional office, and a driver rest facility.

The Reagan Drive facility opened for business in June 1972 with eight dock doors and six associates.

“The new service center not only empowers our company to cultivate lasting relationships with its great customers, partners, and associates in the Charlotte region and beyond, but also instills an opportunity for additional expansion and job growth down the road with its dock door expansion, latest design standards, and efficient yard layout,” said Smigiel.

Southeastern Freight Lines was originally founded in Charlotte in 1950. It now operates 89 service centers in 13 states, Canada and Puerto Rico. For more information, please visit www.sefl.com.