Availability remains on the rise despite construction reaching record lows

In the first quarter of 2024, Charlotte's availability rate increased to a record high of 24.9%. This is an increase of 280 basis points (bps) year over year. The availability rate has been steadily rising due to occupiers resizing to match their hybrid work models and new projects delivering over the past 24 months. Despite no new office projects breaking ground in the first quarter, one building did deliver to the market. The Thread, an adaptive reuse building in South Carolina, delivered 400,000 square feet (sf) of office space, of which only 10% had been preleased at completion. The abundance of office space in the Charlotte market has City leaders looking deeper at the opportunity for office-to-residential conversions in Uptown buildings like the Johnston Building and 526 N Church Street. Looking ahead, Charlotte may face a temporary pause in construction starts as construction financing remains difficult without significant preleasing activity.

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