CHARLOTTE-The countywide multi-tenant warehouse vacancy rate hasleveled off. Tenants occupied almost 486,000 sf of new space duringthe third quarter compared with over 411,000 sf in the secondquarter.

With seven warehouses totaling over one million sf underconstruction, the current 10% vacancy rate could increase to the12% range by the end of the year, according to Karnes ResearchCo.'s newest market study.

Another researcher, Real Estate Research Corp., notes strongdemand from telecom and Internet firms for distribution space. Forexample, Muzak has a new high-tech headquarters in a 100,000-sfwarehouse in Lakemont Business Park in York County, SC. BritaxChild Safety Inc. plans to lease a 123,00-sf manufacturing/officebuilding in South Point Business Park at NC 49 and CarowindsBoulevard. Arizona-based Encore Products moved into 80,000 sf ofrenovated warehouse space on North Tryon Street.