Transcription
Q3 2019CHARLOTTEREPORT
SUBMARKET SNAPSHOT5 YEAR CHANGEThe city of Charlotte is the largest city in North Carolina, the 16thlargest city in the country, and the second largest in the Southeastwith a population of 889,019 as of 2019. The 10-county metropolitanstatistical area (MSA) consists of approximately 2.59 million people,establishing the MSA as the 23rd largest metropolitan area in theUnited States. Considered one of the country’s major financialcenters, Charlotte is the second largest banking center in the UnitedStates with more than 2.3 trillion in assets and is home to theheadquarters of two of the nation’s largest banks, Bank of Americaand BB&T/SunTrust, and substantial operations of Wells Fargo, FifthThird, FNB and 250,0009.5%0201420152016Net Absorption SF2017Deliveries SF#12.6MMOSTMILLENIALGROWTHPOPULATION2018YTD 20199.0%9.9%INCREASE inPOPULATION inpast 5 years13.6%INCREASE inJOBS in past 5yearsTotal Vacancy %1.3MJOBS#3BEST STATETO DOBUSINESS 30.0015% 29.00 28.0014% 64.8KMEDIANHOUSEHOLDINCOME 27.00 26.0013% 25.00 24.0012% 23.00 22.0011% 21.00 20.003.7%UNEMPLOYMENTRATEApril 2019201420152016Average Asking Rate 20172018Total Vacancy %YTD 201910%
SUBMARKET REPORTUPTOWNQ3 2019As the nation’s saecond largest banking andfinancial center outside of New York City,Charlotte’s Uptown (CBD) submarket has becomeone of the most significant business, financial,and cultural hubs in the Southeast and one ofthe top performing office markets in the country.Uptown’s incredibly strong competitive positionis accentuated by its active 24/7 environmentand dynamic mix of office, residential, retail,and entertainment offerings. Further, recentimprovement in metro-wide transportation linkages,especially the widely-heralded and broadly-utilizedLYNX Blue Line Light Rail, have bolstered Uptown’snationally-prominent position as the epicenter ofCharlotte’s office market.N19,697,64292%1,254,933 SF 33.41OccupancyYTD AbsorptionGross AvgRental RateKEY LEASE TRANSACTIONSSIGNDATEPROPERTYQ319Legacy UnionPhase III147,852300 S Tryon l CloudNewQ319300 S Tryon St15,537Dechert Law FirmNewQ319525 N Tryon12,451Dozier MillerNewQ219Legacy UnionPhase I82,659Parker PoeNewUPTOWN FUNDAMENTAL 319Johnson Bldg172,386Q219101 N Tryon526,000Q119Gateway Center310,745Q318Wake ForestUniversityCharlotte CenterQ318129 W TradeSELLERBUYER7%-200,000KEY SALE TRANSACTIONS-400,000PRICE / PSFDilwegSpaulding & SlyeLRC Properties & BarringsNuveen & CrescentCommunitiesGEM RealtyHamilton Equity Partners 132.3M / 252455,749Shidler GroupTPG 54.5M / 120153,498Triangle CapitalSomerset Properties 24M / 147 35.3M / 205 40.5M / 130SIGNIFICANT UNDER CONSTRUCTION20142015Net Absorption SF20162017Deliveries SF2018YTD 20196%Total Vacancy % 36.0020% 34.0018% 32.0016% 30.0014% 28.0012% 26.0010%SFOWNERDEVELOPERESTIMATEDCOMPLETION 24.008%Legacy Union - Phase II362,500Goldman Sachs &Lincoln HarrisQ3 2020 22.006%Legacy Union - Phase III287,000Goldman Sachs &Lincoln HarrisQ3 2020Ally Charlotte Center742,000Crescent CommunitiesQ1 2021156,415Dominion RealtyPartners & NY LifeQ2 2021PROPERTYFNB Tower 20.00201420152016Average Asking Rate 20172018Total Vacancy %YTD 20194%
SUBMARKET REPORTMIDTOWNQ3 2019Historic South End (Midtown) is Charlotte’s urbanoasis for young professionals. What was largely aneglected industrial corridor in the 1980’s turnedinto a haven for artists and creatives in the 1990’sand early 2000’s. The delivery of the light rail in2007 resulted in an influx of multifamily growth.As a result, South End evolved into Charlotte’strendiest neighborhood as the city’s millenialhotspot home to craft breweries, creative office,high-end multifamily, and unique retailers. SouthEnd’s industrial charm attracts residents and vistorsas Charlotte’s most exciting neighborhood to live,shop, dine, work, create, and relax.N3,262,806 SF89%812,842 SF 36.31SupplyOccupancyYTD AbsorptionGross AvgRental RateRECENT LEASE TRANSACTIONSSFTENANTTRANSACTIONTYPE300 W Summit10,624ColliersNewDesign Center pectrum South End176,000Lending TreeNewQ219Thrift Rd38,000Wray WardNewQ2191410 W Morehead St8,416Airwavz SolutionsNewMIDTOWN FUNDAMENTAL 05%0RECENT SALE TRANSACTIONSSALEDATEPROPERTYQ119Dilworth ArtisanStationSFSELLERBUYERPRICE / PSF46,987Richard & Robert FullerWhite Point Partners 8.7M / 185 40.0020152016Net Absorption SFQ4182151 Hawkins St27,045Southend VenturesPortman Holdings 12.7M / 470 38.00Q418Charlotte PlasticSurgery11,356Michael BeasleyPeter L Coker 5.3M / 467 36.00Q318500 E Morehead178,336Beacon PartnersZurich Alternative 88.5M / 4732017Deliveries SF20184%YTD 2019Total Vacancy %14%12% 34.0010% 32.00 30.00SIGNIFICANT UNDER ETIONHarding Place90,438CitiSculptQ4 201931,713Ram RealtyQ1 2020Three30Five - Building C20142100 S Tryon83,000Vision VenturesQ2 2020The Square150,000Beacon PartnersQ4 2020Spectrum Southend627,000Spectrum CompaniesQ1 20218% 28.006% 26.00 24.004% 22.00 20.00201420152016Average Asking Rate 20172018Total Vacancy %YTD 20192%
SUBMARKET REPORTSOUTHPARKQ3 2019SouthPark is Charlotte’s most mature live-work-playcommunity that is home to the area’s strongestdemographics, extensive executive housing,well-established office parks which attract nationaland regional tenants, and unmatched retail anddining options. Centrally located within Charlotte,SouthPark is only 15 minutes away from Charlotte’scentral business district. At the heart of SouthPark isSouthPark Mall, which encompasses over 1.6 millionsquare feet of retail space and boasts the secondhighest retail sales per square foot in the Southeast.N4,551,321 SF128,014 SFSupplyYTD Absorption92%OccupancySOUTHPARK FUNDAMENTAL CHARTS300,00022%250,00020%200,00018% 32.04150,00016%Gross AvgRental Rate100,00014%50,00012%010%RECENT LEASE TRANSACTIONS-50,0008%SFTENANTTRANSACTIONTYPEOne Piedmont TownCentre53,347PNC BankExpansionQ219One Morrocroft Centre12,206RBC Capital MarketsNewQ119Two Piedmont TownCenter79,986AMWINSExpansion 34.0018%17%SIGNDATEPROPERTYQ219-100,000Q119Capital Towers - South47,000New 33.00Q119Two Piedmont TownCenter23,175First Horizon / CapitalBankNew 32.00Q119Rotunda Building22,500Precision LendingNew 31.00Q319Q319PROPERTYSouthPark Center I4525 Sharon RdSF147,14147,54720162017Deliveries SF2018YTD 20196%Total Vacancy %16%15%14% 30.00RECENT SALE TRANSACTIONSSELLERBUYER2015Net Absorption SFDiscoveryCommunicationsSALEDATE201413% 29.0012%PRICE / PSF"Continental Capital Partners 38.3M / 260MB Real Estate""Wells FargoLevine Properties" 13.7M / 287 28.0011% 27.0010% 26.00Q319Fairivew CenterI & II182,758"Bridge CBRECapRidge Partners" 39.3M / 215Q219Rexford I & II147,074"Lending TreeChildress Klein" 24.5M / 166Q418Capitol Towers477,076"Lincoln HarrisPreferred Office Properties" 205.8M / 435 25.009%201420152016Average Asking Rate 20172018Total Vacancy %YTD 20198%
SUBMARKET REPORTSOUTH485Q3 2019The South/485 submarket is most known for beinghome to Ballantyne Corporate Park. The area isideal for large corporations that are looking forpremium suburban Class A office space in theCharlotte market. Ideally located along I-485,I-77 and Hwy 521, this location provides tenantsconvenient commute options to and from the workplace. Also, the submarket is known for its extensiveoffice offerings, substantial retail amenities, a broadrange of high quality multi-family and single-familyneighborhoods, and superior public and privateschools.N5,854,631 SF273,874 SFSupplyYTD AbsorptionSOUTH485 FUNDAMENTAL CHARTS500,00016%450,00015%400,00014% 33.51350,00013%Gross AvgRental Rate300,00012%250,00011%RECENT LEASE IONTYPEWoodward Building30,735SegraNewThe Hub at Waverly28,000RemiNew0Q219Woodfield II16,257Shea HomesRenewalQ119The Crawford Building54,194Lincoln FinancialNewQ119The Hub at l One37,656Q218Harper Medical47,007SELLERBUYERThe Bissell CompaniesAnchor Health PropertiesBissell & CarolinaNeurosurgeryAnchor Health Properties13146 Ballantyne Corporate PlNet Absorption SF20162017Deliveries SF2018YTD 20196%Total Vacancy %22% 33.0020% 32.0018% 31.0016% 30.0014% 17.1M / 454 29.0012% 19.6M / 416 28.0010% 27.008% 26.006% 25.004%PRICE / PSFSIGNIFICANT UNDER CONSTRUCTIONPROPERTY2015 34.00RECENT SALE OMPLETION328,000Northwood InvestorsQ1 2021 24.00201420152016Average Asking Rate 20172018Total Vacancy %YTD 20192%
SUBMARKET REPORTAIRPORTQ3 2019The Charlotte Douglas International Airport islocated in the submarket providing unparalleledconvenience for Charlotte’s corporations that callthe Airport submarket home. Additionally, thesubmarket is serviced by Charlotte’s two majorinterstate systems, Interstate 85 and Interstate 77,and Charlotte’s 68 mile beltline, Interstate 485.Located between Lake Wylie and Charlotte’s mostprestigious neighborhoods of Myers Park, Dilworth,and SouthPark, the Airport submarket offers awealth of executive housing within a 15 minute drive.N10,003,199 SF86%178,884 SF 23.81SupplyOccupancyYTD AbsorptionGross AvgRental RateAIRPORT FUNDAMENTAL CHARTS500,000SFTENANTTRANSACTIONTYPEFive Coliseum Centre28,590Baker & TaylorNewLakePointe III40,000blu eCigsNewQ219LakePointe III15,295Compass GroupNewQ119Forest Park X61,151Charter CommunicationsNewQ119207 Regency32,579Southeastern %100,0000RECENT SALE TRANSACTIONSSELLERBUYERPRICE / PSF201 Regency ExecutivePark Dr32,956CapRocqSusquehanna 7M / 213Q119AT&T132,035IPCCPraelium 17M / 129Q119Forest Park VI69,831Q418Parkway Plaza368,871Q318Arrowpoint II & III163,687PROPERTYQ319Stream RealtyLongvalley II, LLCEola & CBREIHamilton EquityPartnersAccessoRealOp InvestmentsArrowood Station2014201520162017Deliveries SF2018YTD 201912%Total Vacancy % 25.0018% 24.0017% 12.6M / 180 23.0016%Withheld 22.0015% 10.4M / 64 21.0014% 20.0013% 19.0012%SIGNIFICANT UNDER CONSTRUCTIONPROPERTY13%Net Absorption SFSFSALEDATE17%400,000RECENT LEASE MPLETION114,469White Oak Real EstateAdvisorsQ4 2019 18.00201420152016Average Asking Rate 20172018Total Vacancy %YTD 201911%
SUBMARKET REPORTUNIVERSITYQ3 2019The University submarket has become an obviousdestination for corporate headquarter locations,back office users, call center spaces, and innovative,research campuses. Some of the major office parksinclude Innovation Park, Cambridge, Mallard Creek,University Executive Park, Prosperity Place, andResource Square. Given its strong amenity base,close proximity to all of the area’s major interstatehighways, superior power and fiber infrastructure,and close association with UNC Charlotte, theUniversity submarket is one of Charlotte’s mostattractive choices for major corporate facilities.N4,117,874 SF90,190 SFSupplyYTD AbsorptionUNIVERSITY FUNDAMENTAL CHARTS300,00022%250,00021%200,00020%150,000100,000 24.6785%50,000Gross AvgRental RateOccupancyTENANTTRANSACTIONTYPEUniversity Highlands97,596United RentalsNewQ219Cambridge CorporateCenter97,000GoHealthNewQ11910101 David Taylor Dr92,740Centene CorporationNewQ21917%-50,000SFPROPERTY18%0KEY LEASE TRANSACTIONSSIGNDATE19%Q119One University Place11,084University RadioFoundation (WFAE)RenewalQ119Four Resource Square10,257Acuity HealthcareSolutionsNewKEY SALE TRANSACTIONS-100,000201420152016Net Absorption SF2017Deliveries SF2018YTD 201916%Total Vacancy % 27.0025% 26.0024% 25.0023% 24.0022% 23.0021% 22.0020% 21.0019% 20.0018%SFSELLERBUYERPRICE / PSF335,772DilwegTerraCap Management 59.3M / 177 19.0017% 13.6M / 201 18.0016% 63M / 180 17.00SALEDATEPROPERTYQ319Resource SquareI, II & VQ2198601 UniversityEast Dr67,287Q418Cambridge349,815Q418Three ResourceSquare124,767Marr DevelopmentTryon Capital VenturesOrigin Investments & AtlanticCreek & Stream Realty /Arch CompaniesTorchlight InvestorsCREMAC 18.4M / 148201420152016Average Asking Rate 20172018Total Vacancy %YTD 201915%
SUBMARKET REPORTSOUTH CHARLOTTEQ3 2019The South Charlotte submarket has 2.7 millionsquare feet (MSF) of office space that isconveniently located off of Highway 51 and I-485.Tenants choose South Charlotte due to its fantasticamenity base, proximity to executive housing andtop rated schools, and its access to major highwaysand the airport. Situated between SouthPark andBallantyne, the South Charlotte office market catersto smaller office users desiring more cost-effectiverental rates and convenient access to their homes.The buildings located along Highway 51 in the SouthCharlotte submarket offer smaller tenants moreefficient layouts on smaller floor plates, a higherratio of windows, and prominent elevator lobbyvisibility compared to SouthPark and Ballantyne.Most of the office product in the South Charlottesubmarket is concentrated to five (5) office parkslocated along Highway 51 near the Johnston Roadand Carmel Road intersections. These five (5) officeparks account for nearly 33% of the submarketinventory and include Quail Plaza, Carmel Park,Carmel Crossing, Carmel Executive Park, andWoodfield.NSOUTH CHARLOTTE FUNDAMENTAL %-50,0001,060,386 SFSupply(8,277) SF90%OccupancyYTD Absorption 25.18Gross AvgRental Rate8%6%-100,00020142015Net Absorption SF20162017Deliveries SF2018YTD 2019Total Vacancy % 26.00RECENT LEASE TRANSACTIONS30% 25.00SIGNDATEPROPERTYSFTENANTTRANSACTIONTYPE 24.00Q219Carmel Park II14,016LeanTassExpansion 23.00Q219The Davie Building12,157Progressive InsuranceExpansion 22.00Q219Carmel ExecutivePark VI1,270Genems SystemsNew 21.00Q219The Davie Building1,234Kitchen LLCRenewal 20.00Q119Carmel Park I14,624PayzerNew 19.00KEY SALE TRANSACTIONS25%20%15%10%5% 18.00SALEDATEPROPERTYSFSELLERBUYERPRICE / PSFQ219Quail Plaza89,730Trigate CapitalAdler Real Estate Partners 15.9M / 177 17.004%201420152016Average Asking Rate 20172018Total Vacancy %YTD 20190%
SUBMARKET REPORTPLAZA MIDWOOD& NODAQ3 2019The Plaza Midwood/NoDa submarket locatedjust north of Charlotte’s CBD is becoming oneof the most active commercial and residentialdevelopment urban submarkets within theCharlotte MSA. In the spring of 2018, the LYNXBlue Line Extension opened creating a 9.3 milerail line extending from the CBD through the PlazaMidwood/NoDa submarket. Currently there is500,000 sf of office space under construction.Such development is accompanied by the factthat half of the submarket falls into the designated“Opportunity Zones” that coincide along the lightrail line. This will further incentivize investors todevelop in the area for the foreseeable future.N529,151 SF135,765SupplyYTD AbsorptionPLAZA MIDWOOD/NODA FUNDAMENTAL CHARTS350,0007%300,0006%250,00064%Occupancy 34.04200,000Gross AvgRental Q219436 E 36th St20,000IndustriousNewCAMP North End5,586704Games CompanyQ418SFSELLERBUYERPRICE / PSF195,175ScanduraArtesia Real Estate 8.8M / 45PROPERTY1801 N TryonNorth Graham at Dalton020162017Deliveries SF2018YTD 2019Total Vacancy %40% 30.0035%30%25% ek PropertiesLCRE CapitalQ4 192% 35.0020% 15.0015% 10.00200,000Artesia Real EstateQ4 19Station House120,000Anthony KuhnQ2 20 5.00109,972ATCOShorensteinQ2 20 0.00240,000ATCOShorensteinQ2 21Ford Building2015Net Absorption SFFoundation SupplyCAMP022014 25.00SIGNIFICANT UNDER CONSTRUCTIONPROPERTY3%50,000NewRECENT SALE TRANSACTIONSSALEDATE4%100,000RECENT LEASE TRANSACTIONSQ1195%10%5%201420152016Average Asking Rate 20172018Total Vacancy %YTD 20190%
SUBMARKET REPORTPARK ROADQ3 2019The Park Road submarket has become a uniquecorridor that contains all of the amenities businessowners are looking for in a live, work, playenvironment. The submarket contains Park RoadShopping Center along with Montford entertainmentcenter that are home to some of Charlotte’s toprated shops, restaurants, and new residentialdevelopments. Uniquely located in between two ofCharlotte’s most desirable submarkets (Midtownand SouthPark), Park Road presents tenants andlandlords an extraordinary opportunity to workclose to the central business district at a discountwhile still maintaining all the amenities employeesrequire from a modern day workplace.NPARK ROAD FUNDAMENTAL CHARTS658,415 SF18,060 SFSupplyYTD Absorption 27.3793%100,00022%75,00018%50,00014%25,00010%Gross AvgRental RateOccupancy02014RECENT LEASE TRANSACTIONS20152016Net Absorption SF2017Deliveries SF2018YTD 20196%Total Vacancy %TENANTTRANSACTIONTYPE 30.0023%12,607CoCoTivExpansion 28.0021%9,938Cardinal Logistics Management CorpNew 26.0019%1515 Montford Park5,175Southeast Anesthesiology 24.0017%Q318200 Southside Dr20,035DPR ConstructionRenewalAbbey Place MedicalOffice15%16,781CMHA - Sleep and OralHealth 22.00Q318Renewal 20.0013%Q2181515 Montford Park13,000CoCoTivNew 18.0011% 16.009%SIGNDATEPROPERTYQ2191515 Montford ParkQ4181515 Montford ParkQ418SFRECENT SALE TRANSACTIONSSALEDATEPROPERTYSFSELLERBUYERPRICE / PSFQ219Park Abbey111,436DilwegFoundry 19.5M / 175 14.00201420152016Average Asking Rate 20172018Total Vacancy %YTD 20197%
SUBMARKET REPORTNORTHEAST I-77Q3 2019The Northeast I-77 submarket is a relativelyimmature submarket compared to most ofCharlotte which offers landlords and tenants uniqueopportunities. Located Northeast of Charlotte’sCBD, the submarket runs along I-77 and is locatedeast of Lake Norman, Charlotte’s largest lake. TheNortheast submarket includes notable office parkssuch as Harris Corners, The Park at Huntersvilleand Kenton Circle. These locations among othersare highly sought after by tenants due to thenearby desirable communities, affordable cost ofoccupancy and being located highly accessibleoffice locations.NNORTHEAST/I-77 FUNDAMENTAL CHARTS1,827,698 SF4,942 SFSupplyYTD Absorption150,00020%19%100,00018%17%50,00015% 24.1187%0Gross AvgRental RateOccupancyRECENT LEASE TRANSACTIONSTENANTTRANSACTIONTYPEAlexander Building13,041Holston Medical GroupNewQ319Storrs Building9,827ATDNewQ319The Linville Building8,646Shapiro & IngleRenewalQ219Harris Corners I11,924AllscriptsNewQ219The Linville Building4,865HilsmierNewQ319KEY SALE TRANSACTIONSSALEDATEPROPERTYFlagship HealthcareMontecito MedicalTotal Vacancy % 23.0018% 22.0017% 21.0016% 20.0015% 19.0014%13% 13.8M / 30744,89312%19% 10.2M / 187Jetton MedicalBuildingsYTD 201920% 17.00Q418Deliveries SF2018 24.00 18.0054,4872017 25.00PRICE / PSF705 Griffith St201621%SFQ2192015 26.00SELLERBUYERCanvas CapitalHealthcare Trust of America2014Net Absorption erage Asking Rate 20172018Total Vacancy %YTD 201912%
About Cushman & WakefieldCushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largestreal estate services firms with approximately 51,000 employees in 400 offices and 70 countries.In 2018, the firm had revenue of 8.2 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.JESSICA BROWNExecutive Director 1 704 887 3023jessica.brown@cushwake.comDAVID DORSCHSenior Director 1 704 335 4441david.dorsch@cushwake.comGRANT KEYESSenior Associate 1 704 887 3021grant.keyes@cushwake.com 2019 Cushman & Wakefield. All rights reserved. The information contained in this communication is strictly confidential. This information has been obtained from sources believed to bereliable but has not been verified. NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, IS MADE AS TO THE CONDITION OF THE PROPERTY (OR PROPERTIES) REFERENCEDHEREIN OR AS TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION CONTAINED HEREIN, AND SAME IS SUBMITTED SUBJECT TO ERRORS, OMISSIONS, CHANGE OF PRICE,RENTAL OR OTHER CONDITIONS, WITHDRAWAL WITHOUT NOTICE, AND TO ANY SPECIAL LISTING CONDITIONS IMPOSED BY THE PROPERTY OWNER(S). ANY PROJECTIONS, OPINIONS OR ESTIMATES ARE SUBJECT TO UNCERTAINTY AND DO NOT SIGNIFY CURRENT OR FUTURE PROPERTY PERFORMANCE.Sources: Cushman & Wakefield Research, Dallas Regional Chamber of Commerce, Moody’s Analytics, Real Capital Analytics, Costar, U.S. Chamber of Commerce.
RECENT SALE TRANSACTIONS RECENT LEASE TRANSACTIONS SIGN DATE PROPERTY SF TENANT TRANSACTION TYPE Q319 300 W Summit 10,624 Colliers New Q219 Design Center Tower 357,526 Lowe's New Q219 Spectrum South End 176,000 Lending Tree New Q219 Thrift Rd 38,000 Wray Ward New Q219 1410 W Morehead St 8,416 Airwavz Solutions New SALE DATE PROPERTY SF SELLER .
