Construction pipeline levels off while speculative supply continues to outpace demand
Overall construction of industrial product in the Queen City has plateaued. In the final quarter of 2023, the under-construction pipeline totaled 16.9 million square feet (msf). Construction declined steadily by 1.0 msf each quarter of 2023. Speculative development makes up 76% of industrial construction in Charlotte, totaling 10.9 msf. Of that, only 2.0 msf has been preleased. That includes the largest lease signed in Q4, by logistics company DHL, which preleased 713,000 square feet (sf) at Innovation Logistics Center in Rowan County. There is 4.0 msf of build-to-suit projects under construction in Charlotte; the majority involves retailers like Macy’s and Home Depot.