Charlotte Office Market Report
Annual full-service rental rates increased by 2.4% on a yearly basis to $34.06/SF, a new all-time high. Net absorption was negative 157,901 SF, pushing the vacancy rate to increase by 10 basis points quarter over quarter to 27.8%. The under-construction pipeline more than tripled in the first quarter of 2025 to 737,789 SF. The increase is primarily due to Queensbridge Collective, a mixed-use project in the Midtown/Southend submarket. However, under-construction activity remains significantly below the average of 2.2 MSF between 2015 and 2024. Total leasing activity increased by 17.7% quarter over quarter to 1.0 MSF. The quarter鈥檚 leasing volume, however, was 10.8% lower than the first quarter activity reported over the past 16 years at 1.1 MSF.