Booming development continues to generate build-to-suits to satisfy Charlotte’s steep industrial demand
Records were shattered in the fourth quarter of 2022, with more than 21.0 million square feet (msf) of industrial product under construction. That resulted in a 43% increase in construction year over year. The State Line submarket, encompassing the border of North Carolina and South Carolina, contains 4.5 msfof space under construction, making it the submarket with the largest volume of construction. This is a result of large retailers such as Home Depot and Amazon constructing build-to-suits that are each nearly 1.0 msfin the submarket, which offers companies vast interstate connectivity. Further sizable build-to-suit projects kicked off in the fourth quarter, including Sherwin-Williams’ $324 million Statesville expansion to construct an 800,000-square-foot (sf) distribution center and create 200 jobs. In Q4, 2.1 msfwas delivered, which includes the long-anticipated 815,000-sf Stateline77 project in York County. Charlotte experienced a 29% decrease in deliveries compared with Q3. In contrast, year-over-year deliveries increased by 425,000 sf.