Office leasing activity rebounds as tenants explore outer submarkets

The Queen City experienced a resilient third quarter of 2024, as leasing activity reached above average levels. Charlotte's Q3 leasing activity totaled 0 .9 million square feet (msf), a 26.5% increase from the 5-year quarterly average. Notable deals for Q3 2024 included Premier Health Solutions leasing the entirety of the Betsill Building located in the Ballantyne submarket totaling over 140,000 square feet (sf). Also, Clifton Larson Allen leased more than 55,000 sf at the Ballantyne Village in the same submarket. A total of 60% of the top deals leased in the Charlotte office market occurred outside of the popular South End or South Park submarkets, which have retained high leasing activity and low availability post pandemic. In Q3, the Ballantyne / Highway 51 submarket led with the most leasing activity, recording 37.8% of the total volume. Aside from the trophy buildings in South End, newly renovated and highly amenitized buildings in the outer submarkets that offer spec suite options and have great interstate access are expected to remain in high demand.

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