CHARLOTTE-Although not out of the woods yet, the Charlotteapartment market should begin to stabilize or even improve laterthis year, according to a first-quarter 2010 Market Update byMarcus & Millichap. Supply growth and declining demand forrental units increased the vacancy rate for the Charlotte area by260 basis points over the 12-month period ending on March 31, 2010to about 11.5%.

But the vacancy rate rose just 90 basis points during the lastsix months of that period, as job loss moderated. The vacancy forthe metro area is expected to climb to 12% this year, a rise of 70basis points, compared to an increase of 310 basis points in2009.

After climbing nearly 700 basis points from the beginning of2008 through the end of 2009, because of competition from theshadow market as well as rising job losses, vacancies in the Uptownmarket have begun to improve as more apartment leases are signed.The increase in rental activity has also affected vacancies andeffective rental rates in the Carmel submarket in the southern partof the metropolitan area, according to M&M.