"We did a 206,000 sf lease with Home Depot," Cherry says. There have been several other deals of 100,000 sf or more. "For some reason, those larger spaces are in demand," he says.
Cherry reports one million sf of leasing activity in the first quarter in Charlotte. "The market is slower," he says. "I'm not trying to say it's on fire but activity is still good." Leasing rates are between the high $2's to the low $4's, he says.
At the end of last year, the Charlotte industrial market included 106.6 million sf of single-and multi-tenant product. The vacancy rate was 6.2%, an improvement from the year before at 7.2%.
Multi-tenant warehouses were setting a pattern of declining vacancies. The average asking gross lease rate was $3.97 per sf.
Distribution activity also continues to drive the market in Charlotte. Trucking companies particularly have chosen to place headquarters at the intersection of Interstates 77 and 85, brokers say.
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