Despite flattening leasing activity, the Queen City continues to attract companies

Leasing activity in Charlotte had virtually no year over year change with 741,157 square feet (sf) of office space leased in the third quarter. Despite a spike in leasing activity reported at the beginning of the year, leasing activity again dropped below pre-pandemic levels and is below the 5-year quarterly average of 830,563 sf. With 63% of all leases signed this quarter in Class A buildings, the flight to quality from office occupiers in areas like Uptown and South End continues. For example, The Bank of London leased 39,480 sf to create a technology hub in Uptown Charlotte which was the second largest lease signed in Charlotte's Central Business district over the past two years. As the country continues to recover from the pandemic, sports entertainment has been on the rebound as Charlotte FC and the Atlantic Coast Conference both made Charlotte their new home this quarter. Despite high inflation and increased interest rates causing headwinds in multiple U.S. markets, the southern financial hub proved somewhat resilient as multiple companies in the third quarter chose to anchor their new headquarters in Charlotte.

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