Calling The Shots on Diversity in Charlotte

The metro’s office development pipeline encompasses 3.1 million square feet, as tight market conditions foster a healthy demand for new projects.
Office-using employment in Charlotte, click to enlarge

A favorable business climate and quality of life, solid population growth and a young workforce have helped Charlotte grow rapidly during the economic cycle. The nation’s third-largest banking center has taken the first steps in diversifying its financial sector reliance, helped by tax incentives for technology businesses. Examples of tech firms expanding in the metro include Apple’s new $5 billion data center and Amazon’s $375 million wind farm. The recently launched LYNX Blue Line extension is also contributing to the growth.

Roughly 3,800 office-using jobs were added in the metro in the 12 months ending in June. Companies such as NN Inc., Dentsply Sirona, Sylem Inc., Sitehands and AXA have moved to the metro due to the high number of well-educated Millennials and affordable housing. The financial activities sector added 2,200 new jobs, as well-established tenants such as RoundPoint Mortgage and Bank of America expanded their presence in the metro. Coworking has been gaining popularity, as an increasing number of companies and employees are keen on flexible working arrangements. WeWork increased its local footprint, while Serendipity Labs and Industrious just entered the market.

Tight market conditions foster healthy demand for office space. The metro’s strong development pipeline encompasses 3.1 million square feet under construction as of July. The 581,000 square feet slated for completion in 2018 will increase office inventory by 7.2 percent.

Read the full Yardi Matrix report.