Q3 2019 CHARLOTTE - f.datasrvr.com · PROPERTY SF OWNER DEVELOPER ESTIMATED COMPLETION Legacy Union...

13
Q3 2019 CHARLOTTE REPORT

Transcript of Q3 2019 CHARLOTTE - f.datasrvr.com · PROPERTY SF OWNER DEVELOPER ESTIMATED COMPLETION Legacy Union...

Page 1: Q3 2019 CHARLOTTE - f.datasrvr.com · PROPERTY SF OWNER DEVELOPER ESTIMATED COMPLETION Legacy Union - Phase II 362,500 Goldman Sachs & Lincoln Harris Q3 2020 Legacy Union - Phase

Q3 2019

CHARLOTTE

REPORT

Page 2: Q3 2019 CHARLOTTE - f.datasrvr.com · PROPERTY SF OWNER DEVELOPER ESTIMATED COMPLETION Legacy Union - Phase II 362,500 Goldman Sachs & Lincoln Harris Q3 2020 Legacy Union - Phase

9.9%INCREASE in

POPULATION in past 5 years

13.6%INCREASE in

JOBS in past 5 years

$64.8KMEDIAN

HOUSEHOLD INCOME

3.7%UNEMPLOYMENT

RATE April 2019

SUBMARKET SNAPSHOT5 YEAR CHANGE

The city of Charlotte is the largest city in North Carolina, the 16th largest city in the country, and the second largest in the Southeast with a population of 889,019 as of 2019.  The 10-county metropolitan statistical area (MSA) consists of approximately 2.59 million people, establishing the MSA as the 23rd largest metropolitan area in the United States.  Considered one of the country’s major financial centers, Charlotte is the second largest banking center in the United States with more than $2.3 trillion in assets and is home to the headquarters of two of the nation’s largest banks, Bank of America and BB&T/SunTrust, and substantial operations of Wells Fargo, Fifth Third, FNB and Ally.

9.0%

9.5%

10.0%

10.5%

11.0%

11.5%

12.0%

12.5%

13.0%

13.5%

14.0%

14.5%

15.0%

15.5%

16.0%

0

250,000

500,000

750,000

1,000,000

1,250,000

1,500,000

1,750,000

2,000,000

2,250,000

2,500,000

2,750,000

3,000,000

3,250,000

3,500,000

2014 2015 2016 2017 2018 YTD 2019

Net Absorption SF Deliveries SF Total Vacancy %

10%

11%

12%

13%

14%

15%

2014 2015 2016 2017 2018 YTD 2019$20.00

$21.00

$22.00

$23.00

$24.00

$25.00

$26.00

$27.00

$28.00

$29.00

$30.00

Average Asking Rate $ Total Vacancy %

FUNDAMENTAL CHARTS

POPULATION2.6M

JOBS1.3MMOST

MILLENIAL GROWTH

#1 #3BEST STATE

TO DOBUSINESS

Page 3: Q3 2019 CHARLOTTE - f.datasrvr.com · PROPERTY SF OWNER DEVELOPER ESTIMATED COMPLETION Legacy Union - Phase II 362,500 Goldman Sachs & Lincoln Harris Q3 2020 Legacy Union - Phase

KEY SALE TRANSACTIONS

PROPERTY SFOWNER

DEVELOPERESTIMATED

COMPLETION

Legacy Union - Phase II 362,500Goldman Sachs &

Lincoln HarrisQ3 2020

Legacy Union - Phase III 287,000Goldman Sachs &

Lincoln HarrisQ3 2020

Ally Charlotte Center 742,000 Crescent Communities Q1 2021

FNB Tower 156,415Dominion Realty

Partners & NY LifeQ2 2021

KEY LEASE TRANSACTIONS

UPTOWN FUNDAMENTAL CHARTS

As the nation’s saecond largest banking and financial center outside of New York City, Charlotte’s Uptown (CBD) submarket has become one of the most significant business, financial, and cultural hubs in the Southeast and one of the top performing office markets in the country. Uptown’s incredibly strong competitive position is accentuated by its active 24/7 environment and dynamic mix of office, residential, retail, and entertainment offerings. Further, recent improvement in metro-wide transportation linkages, especially the widely-heralded and broadly-utilized LYNX Blue Line Light Rail, have bolstered Uptown’s nationally-prominent position as the epicenter of Charlotte’s office market.

N

SIGNIFICANT UNDER CONSTRUCTION

6%

7%

8%

9%

10%

11%

12%

13%

14%

-400,000

-200,000

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

2014 2015 2016 2017 2018 YTD 2019

Net Absorption SF Deliveries SF Total Vacancy %

4%

6%

8%

10%

12%

14%

16%

18%

20%

2014 2015 2016 2017 2018 YTD 2019$20.00

$22.00

$24.00

$26.00

$28.00

$30.00

$32.00

$34.00

$36.00

Average Asking Rate $ Total Vacancy %

SIGN DATE

PROPERTY SF TENANTTRANSACTION

TYPE

Q319Legacy Union Phase III

147,852 Honeywell New

Q319 300 S Tryon St 26,200 Deal Cloud New

Q319 300 S Tryon St 15,537 Dechert Law Firm New

Q319 525 N Tryon 12,451 Dozier Miller New

Q219Legacy Union Phase I

82,659 Parker Poe New

SALE DATE

PROPERTY SFSELLER BUYER

PRICE / $PSF

Q319 Johnson Bldg 172,386Dilweg

Spaulding & Slye$35.3M / $205

Q219 101 N Tryon 526,000LRC Properties & Barrings

Nuveen & Crescent Communities

$132.3M / $252

Q119 Gateway Center 310,745GEM Realty

Hamilton Equity Partners$40.5M / $130

Q318Wake Forest University Charlotte Center

455,749Shidler Group

TPG$54.5M / $120

Q318 129 W Trade 153,498Triangle Capital

Somerset Properties$24M / $147

UPTOWNQ3 2019

SUBMARKET REPORT

19,697,642 $33.41Gross Avg

Rental Rate

92%Occupancy

1,254,933 SFYTD Absorption

Page 4: Q3 2019 CHARLOTTE - f.datasrvr.com · PROPERTY SF OWNER DEVELOPER ESTIMATED COMPLETION Legacy Union - Phase II 362,500 Goldman Sachs & Lincoln Harris Q3 2020 Legacy Union - Phase

PROPERTY SFOWNER

DEVELOPERESTIMATED

COMPLETION

Harding Place 90,438 CitiSculpt Q4 2019

Three30Five - Building C 31,713 Ram Realty Q1 2020

2100 S Tryon 83,000 Vision Ventures Q2 2020

The Square 150,000 Beacon Partners Q4 2020

Spectrum Southend 627,000 Spectrum Companies Q1 2021

MIDTOWN FUNDAMENTAL CHARTS

Historic South End (Midtown) is Charlotte’s urban oasis for young professionals. What was largely a neglected industrial corridor in the 1980’s turned into a haven for artists and creatives in the 1990’s and early 2000’s. The delivery of the light rail in 2007 resulted in an influx of multifamily growth. As a result, South End evolved into Charlotte’s trendiest neighborhood as the city’s millenial hotspot home to craft breweries, creative office, high-end multifamily, and unique retailers. South End’s industrial charm attracts residents and vistors as Charlotte’s most exciting neighborhood to live, shop, dine, work, create, and relax.

N

SIGNIFICANT UNDER CONSTRUCTION

4%

5%

6%

7%

8%

9%

10%

11%

12%

13%

14%

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

2014 2015 2016 2017 2018 YTD 2019

Net Absorption SF Deliveries SF Total Vacancy %

2%

4%

6%

8%

10%

12%

14%

2014 2015 2016 2017 2018 YTD 2019$20.00

$22.00

$24.00

$26.00

$28.00

$30.00

$32.00

$34.00

$36.00

$38.00

$40.00

Average Asking Rate $ Total Vacancy %

RECENT SALE TRANSACTIONS

RECENT LEASE TRANSACTIONSSIGN DATE

PROPERTY SF TENANTTRANSACTION

TYPE

Q319 300 W Summit 10,624 Colliers New

Q219 Design Center Tower 357,526 Lowe's New

Q219 Spectrum South End 176,000 Lending Tree New

Q219 Thrift Rd 38,000 Wray Ward New

Q219 1410 W Morehead St 8,416 Airwavz Solutions New

SALE DATE

PROPERTY SFSELLER BUYER

PRICE / $PSF

Q119Dilworth Artisan Station

46,987Richard & Robert Fuller

White Point Partners$8.7M / $185

Q418 2151 Hawkins St 27,045Southend Ventures Portman Holdings

$12.7M / $470

Q418Charlotte Plastic Surgery

11,356Michael Beasley Peter L Coker

$5.3M / $467

Q318 500 E Morehead 178,336Beacon Partners

Zurich Alternative$88.5M / $473

MIDTOWNQ3 2019

SUBMARKET REPORT

3,262,806 SFSupply

$36.31Gross Avg

Rental Rate

89%Occupancy

812,842 SFYTD Absorption

Page 5: Q3 2019 CHARLOTTE - f.datasrvr.com · PROPERTY SF OWNER DEVELOPER ESTIMATED COMPLETION Legacy Union - Phase II 362,500 Goldman Sachs & Lincoln Harris Q3 2020 Legacy Union - Phase

SouthPark is Charlotte’s most mature live-work-play community that is home to the area’s strongest demographics, extensive executive housing, well-established office parks which attract national and regional tenants, and unmatched retail and dining options. Centrally located within Charlotte, SouthPark is only 15 minutes away from Charlotte’s central business district. At the heart of SouthPark is SouthPark Mall, which encompasses over 1.6 million square feet of retail space and boasts the second highest retail sales per square foot in the Southeast.

6%

8%

10%

12%

14%

16%

18%

20%

22%

-100,000

-50,000

0

50,000

100,000

150,000

200,000

250,000

300,000

2014 2015 2016 2017 2018 YTD 2019

Net Absorption SF Deliveries SF Total Vacancy %

8%

9%

10%

11%

12%

13%

14%

15%

16%

17%

18%

2014 2015 2016 2017 2018 YTD 2019$25.00

$26.00

$27.00

$28.00

$29.00

$30.00

$31.00

$32.00

$33.00

$34.00

Average Asking Rate $ Total Vacancy %

SOUTHPARK FUNDAMENTAL CHARTS

N

RECENT SALE TRANSACTIONS

RECENT LEASE TRANSACTIONS

SIGN DATE

PROPERTY SF TENANTTRANSACTION

TYPE

Q219One Piedmont Town Centre

53,347 PNC Bank Expansion

Q219 One Morrocroft Centre 12,206 RBC Capital Markets New

Q119Two Piedmont Town Center

79,986 AMWINS Expansion

Q119 Capital Towers - South 47,000Discovery

CommunicationsNew

Q119Two Piedmont Town Center

23,175First Horizon / Capital

BankNew

Q119 Rotunda Building 22,500 Precision Lending New

SALE DATE

PROPERTY SFSELLER BUYER

PRICE / $PSF

Q319 SouthPark Center I 147,141"Continental Capital Partners

MB Real Estate"$38.3M / $260

Q319 4525 Sharon Rd 47,547"Wells Fargo

Levine Properties"$13.7M / $287

Q319Fairivew Center I & II

182,758"Bridge CBRE

CapRidge Partners"$39.3M / $215

Q219 Rexford I & II 147,074"Lending Tree

Childress Klein"$24.5M / $166

Q418 Capitol Towers 477,076"Lincoln Harris

Preferred Office Properties"$205.8M / $435

SOUTHPARKQ3 2019

SUBMARKET REPORT

4,551,321 SFSupply

$32.04Gross Avg

Rental Rate

92%Occupancy

128,014 SFYTD Absorption

Page 6: Q3 2019 CHARLOTTE - f.datasrvr.com · PROPERTY SF OWNER DEVELOPER ESTIMATED COMPLETION Legacy Union - Phase II 362,500 Goldman Sachs & Lincoln Harris Q3 2020 Legacy Union - Phase

The South/485 submarket is most known for being home to Ballantyne Corporate Park. The area is ideal for large corporations that are looking for premium suburban Class A office space in the Charlotte market. Ideally located along I-485, I-77 and Hwy 521, this location provides tenants convenient commute options to and from the work place. Also, the submarket is known for its extensive office offerings, substantial retail amenities, a broad range of high quality multi-family and single-family neighborhoods, and superior public and private schools.

6%

7%

8%

9%

10%

11%

12%

13%

14%

15%

16%

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

2014 2015 2016 2017 2018 YTD 2019

Net Absorption SF Deliveries SF Total Vacancy %

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

22%

2014 2015 2016 2017 2018 YTD 2019$24.00

$25.00

$26.00

$27.00

$28.00

$29.00

$30.00

$31.00

$32.00

$33.00

$34.00

Average Asking Rate $ Total Vacancy %

SOUTH485 FUNDAMENTAL CHARTS

N

PROPERTY SFOWNER

DEVELOPERESTIMATED

COMPLETION13146 Ballantyne Corpo-rate Pl

328,000 Northwood Investors Q1 2021

SIGNIFICANT UNDER CONSTRUCTION

RECENT SALE TRANSACTIONS

RECENT LEASE TRANSACTIONS

SIGN DATE

PROPERTY SF TENANTTRANSACTION

TYPE

Q319 Woodward Building 30,735 Segra New

Q319 The Hub at Waverly 28,000 Remi New

Q219 Woodfield II 16,257 Shea Homes Renewal

Q119 The Crawford Building 54,194 Lincoln Financial New

Q119 The Hub at Waverly 28,000 Remi New

SALE DATE

PROPERTY SFSELLER BUYER

PRICE / $PSF

Q119Ballantyne Medical One

37,656The Bissell Companies

Anchor Health Properties$17.1M / $454

Q218 Harper Medical 47,007Bissell & Carolina

Neurosurgery Anchor Health Properties

$19.6M / $416

SOUTH485Q3 2019

SUBMARKET REPORT

5,854,631 SFSupply

$33.51Gross Avg

Rental Rate88%

Occupancy

273,874 SFYTD Absorption

Page 7: Q3 2019 CHARLOTTE - f.datasrvr.com · PROPERTY SF OWNER DEVELOPER ESTIMATED COMPLETION Legacy Union - Phase II 362,500 Goldman Sachs & Lincoln Harris Q3 2020 Legacy Union - Phase

12%

13%

14%

15%

16%

17%

18%

0

100,000

200,000

300,000

400,000

500,000

2014 2015 2016 2017 2018 YTD 2019

Net Absorption SF Deliveries SF Total Vacancy %

11%

12%

13%

14%

15%

16%

17%

18%

2014 2015 2016 2017 2018 YTD 2019$18.00

$19.00

$20.00

$21.00

$22.00

$23.00

$24.00

$25.00

Average Asking Rate $ Total Vacancy %

RECENT SALE TRANSACTIONS

PROPERTY SFOWNER

DEVELOPERESTIMATED

COMPLETION

Arrowood Station 114,469White Oak Real Estate

AdvisorsQ4 2019

RECENT LEASE TRANSACTIONS

AIRPORT FUNDAMENTAL CHARTS

The Charlotte Douglas International Airport is located in the submarket providing unparalleled convenience for Charlotte’s corporations that call the Airport submarket home. Additionally, the submarket is serviced by Charlotte’s two major interstate systems, Interstate 85 and Interstate 77, and Charlotte’s 68 mile beltline, Interstate 485. Located between Lake Wylie and Charlotte’s most prestigious neighborhoods of Myers Park, Dilworth, and SouthPark, the Airport submarket offers a wealth of executive housing within a 15 minute drive.

N

SIGNIFICANT UNDER CONSTRUCTION

SIGN DATE

PROPERTY SF TENANTTRANSACTION

TYPE

Q319 Five Coliseum Centre 28,590 Baker & Taylor New

Q219 LakePointe III 40,000 blu eCigs New

Q219 LakePointe III 15,295 Compass Group New

Q119 Forest Park X 61,151 Charter Communications New

Q119 207 Regency 32,579 Southeastern Institute New

SALE DATE

PROPERTY SFSELLER BUYER

PRICE / $PSF

Q319201 Regency Executive Park Dr

32,956CapRocq

Susquehanna$7M / $213

Q119 AT&T 132,035IPCC

Praelium$17M / $129

Q119 Forest Park VI 69,831Stream Realty

Longvalley II, LLC$12.6M / $180

Q418 Parkway Plaza 368,871Eola & CBREI

Hamilton Equity Partners

Withheld

Q318 Arrowpoint II & III 163,687Accesso

RealOp Investments$10.4M / $64

AIRPORTQ3 2019

SUBMARKET REPORT

10,003,199 SFSupply

$23.81Gross Avg

Rental Rate

86%Occupancy

178,884 SFYTD Absorption

Page 8: Q3 2019 CHARLOTTE - f.datasrvr.com · PROPERTY SF OWNER DEVELOPER ESTIMATED COMPLETION Legacy Union - Phase II 362,500 Goldman Sachs & Lincoln Harris Q3 2020 Legacy Union - Phase

The University submarket has become an obvious destination for corporate headquarter locations, back office users, call center spaces, and innovative, research campuses. Some of the major office parks include Innovation Park, Cambridge, Mallard Creek, University Executive Park, Prosperity Place, and Resource Square. Given its strong amenity base, close proximity to all of the area’s major interstate highways, superior power and fiber infrastructure, and close association with UNC Charlotte, the University submarket is one of Charlotte’s most attractive choices for major corporate facilities.

16%

17%

18%

19%

20%

21%

22%

-100,000

-50,000

0

50,000

100,000

150,000

200,000

250,000

300,000

2014 2015 2016 2017 2018 YTD 2019

Net Absorption SF Deliveries SF Total Vacancy %

15%

16%

17%

18%

19%

20%

21%

22%

23%

24%

25%

2014 2015 2016 2017 2018 YTD 2019$17.00

$18.00

$19.00

$20.00

$21.00

$22.00

$23.00

$24.00

$25.00

$26.00

$27.00

Average Asking Rate $ Total Vacancy %

KEY SALE TRANSACTIONS

KEY LEASE TRANSACTIONS

UNIVERSITY FUNDAMENTAL CHARTS

N

SIGN DATE

PROPERTY SF TENANTTRANSACTION

TYPE

Q219 University Highlands 97,596 United Rentals New

Q219Cambridge Corporate Center

97,000 GoHealth New

Q119 10101 David Taylor Dr 92,740 Centene Corporation New

Q119 One University Place 11,084University Radio

Foundation (WFAE)Renewal

Q119 Four Resource Square 10,257Acuity Healthcare

SolutionsNew

SALE DATE

PROPERTY SFSELLER BUYER

PRICE / $PSF

Q319Resource Square I, II & V

335,772Dilweg

TerraCap Management$59.3M / $177

Q2198601 University East Dr

67,287Marr Development

Tryon Capital Ventures$13.6M / $201

Q418 Cambridge 349,815Origin Investments & Atlantic

Creek & Stream Realty / Arch Companies

$63M / $180

Q418Three Resource Square

124,767Torchlight Investors

CREMAC$18.4M / $148

UNIVERSITYQ3 2019

SUBMARKET REPORT

4,117,874 SFSupply

$24.67Gross Avg

Rental Rate85%

Occupancy

90,190 SFYTD Absorption

Page 9: Q3 2019 CHARLOTTE - f.datasrvr.com · PROPERTY SF OWNER DEVELOPER ESTIMATED COMPLETION Legacy Union - Phase II 362,500 Goldman Sachs & Lincoln Harris Q3 2020 Legacy Union - Phase

RECENT LEASE TRANSACTIONS

SOUTH CHARLOTTE FUNDAMENTAL CHARTS

The South Charlotte submarket has 2.7 million square feet (MSF) of office space that is conveniently located off of Highway 51 and I-485. Tenants choose South Charlotte due to its fantastic amenity base, proximity to executive housing and top rated schools, and its access to major highways and the airport. Situated between SouthPark and Ballantyne, the South Charlotte office market caters to smaller office users desiring more cost-effective rental rates and convenient access to their homes.

The buildings located along Highway 51 in the South Charlotte submarket offer smaller tenants more efficient layouts on smaller floor plates, a higher ratio of windows, and prominent elevator lobby visibility compared to SouthPark and Ballantyne. Most of the office product in the South Charlotte submarket is concentrated to five (5) office parks located along Highway 51 near the Johnston Road and Carmel Road intersections. These five (5) office parks account for nearly 33% of the submarket inventory and include Quail Plaza, Carmel Park, Carmel Crossing, Carmel Executive Park, and Woodfield.

N

4%

6%

8%

10%

12%

14%

16%

18%

20%

22%

24%

-100,000

-50,000

0

50,000

100,000

150,000

2014 2015 2016 2017 2018 YTD 2019

Net Absorption SF Deliveries SF Total Vacancy %

0%

5%

10%

15%

20%

25%

30%

2014 2015 2016 2017 2018 YTD 2019$17.00

$18.00

$19.00

$20.00

$21.00

$22.00

$23.00

$24.00

$25.00

$26.00

Average Asking Rate $ Total Vacancy %

SIGN DATE

PROPERTY SF TENANTTRANSACTION

TYPE

Q219 Carmel Park II 14,016 LeanTass Expansion

Q219 The Davie Building 12,157 Progressive Insurance Expansion

Q219Carmel Executive Park VI

1,270 Genems Systems New

Q219 The Davie Building 1,234 Kitchen LLC Renewal

Q119 Carmel Park I 14,624 Payzer New

SOUTH CHARLOTTEQ3 2019

SUBMARKET REPORT

1,060,386 SFSupply

$25.18Gross Avg

Rental Rate

90%Occupancy

(8,277) SFYTD Absorption

KEY SALE TRANSACTIONSSALE DATE

PROPERTY SFSELLER BUYER

PRICE / $PSF

Q219 Quail Plaza 89,730Trigate Capital

Adler Real Estate Partners$15.9M / $177

Page 10: Q3 2019 CHARLOTTE - f.datasrvr.com · PROPERTY SF OWNER DEVELOPER ESTIMATED COMPLETION Legacy Union - Phase II 362,500 Goldman Sachs & Lincoln Harris Q3 2020 Legacy Union - Phase

2%

3%

4%

5%

6%

7%

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2014 2015 2016 2017 2018 YTD 2019

Net Absorption SF Deliveries SF Total Vacancy %

0%

5%

10%

15%

20%

25%

30%

35%

40%

2014 2015 2016 2017 2018 YTD 2019$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

Average Asking Rate $ Total Vacancy %

PROPERTY SFOWNER

DEVELOPERESTIMATED

COMPLETION

North Graham at Dalton 45,000Tribek Properties

LCRE CapitalQ4 19

Foundation Supply 200,000 Artesia Real Estate Q4 19

Station House 120,000 Anthony Kuhn Q2 20

CAMP02 109,972ATCO

ShorensteinQ2 20

Ford Building 240,000ATCO

ShorensteinQ2 21

PLAZA MIDWOOD/NODA FUNDAMENTAL CHARTS

The Plaza Midwood/NoDa submarket located just north of Charlotte’s CBD is becoming one of the most active commercial and residential development urban submarkets within the Charlotte MSA. In the spring of 2018, the LYNX Blue Line Extension opened creating a 9.3 mile rail line extending from the CBD through the Plaza Midwood/NoDa submarket. Currently there is 500,000 sf of office space under construction. Such development is accompanied by the fact that half of the submarket falls into the designated “Opportunity Zones” that coincide along the light rail line. This will further incentivize investors to develop in the area for the foreseeable future.

N

SIGNIFICANT UNDER CONSTRUCTION

RECENT SALE TRANSACTIONS

RECENT LEASE TRANSACTIONSSIGN DATE

PROPERTY SF TENANTTRANSACTION

TYPE

Q219 436 E 36th St 20,000 Industrious New

Q119 CAMP North End 5,586 704Games Company New

SALE DATE

PROPERTY SFSELLER BUYER

PRICE / $PSF

Q418 1801 N Tryon 195,175Scandura

Artesia Real Estate$8.8M / $45

SUBMARKET REPORT

PLAZA MIDWOOD & NODAQ3 2019

529,151 SFSupply

$34.04Gross Avg

Rental Rate64%

Occupancy

135,765YTD Absorption

Page 11: Q3 2019 CHARLOTTE - f.datasrvr.com · PROPERTY SF OWNER DEVELOPER ESTIMATED COMPLETION Legacy Union - Phase II 362,500 Goldman Sachs & Lincoln Harris Q3 2020 Legacy Union - Phase

6%

10%

14%

18%

22%

0

25,000

50,000

75,000

100,000

2014 2015 2016 2017 2018 YTD 2019

Net Absorption SF Deliveries SF Total Vacancy %

PARK ROAD FUNDAMENTAL CHARTS

The Park Road submarket has become a unique corridor that contains all of the amenities business owners are looking for in a live, work, play environment. The submarket contains Park Road Shopping Center along with Montford entertainment center that are home to some of Charlotte’s top rated shops, restaurants, and new residential developments. Uniquely located in between two of Charlotte’s most desirable submarkets (Midtown and SouthPark), Park Road presents tenants and landlords an extraordinary opportunity to work close to the central business district at a discount while still maintaining all the amenities employees require from a modern day workplace.

N

7%

9%

11%

13%

15%

17%

19%

21%

23%

2014 2015 2016 2017 2018 YTD 2019$14.00

$16.00

$18.00

$20.00

$22.00

$24.00

$26.00

$28.00

$30.00

Average Asking Rate $ Total Vacancy %

RECENT LEASE TRANSACTIONSSIGN DATE

PROPERTY SF TENANTTRANSACTION

TYPE

Q219 1515 Montford Park 12,607 CoCoTiv Expansion

Q418 1515 Montford Park 9,938Cardinal Logistics Man-

agement CorpNew

Q418 1515 Montford Park 5,175Southeast Anesthesi-

ology

Q318 200 Southside Dr 20,035 DPR Construction Renewal

Q318Abbey Place Medical Office

16,781CMHA - Sleep and Oral

HealthRenewal

Q218 1515 Montford Park 13,000 CoCoTiv New

SUBMARKET REPORT

PARK ROADQ3 2019

658,415 SFSupply

$27.37Gross Avg

Rental Rate93%

Occupancy

18,060 SFYTD Absorption

RECENT SALE TRANSACTIONSSALE DATE

PROPERTY SFSELLER BUYER

PRICE / $PSF

Q219 Park Abbey 111,436Dilweg

Foundry$19.5M / $175

Page 12: Q3 2019 CHARLOTTE - f.datasrvr.com · PROPERTY SF OWNER DEVELOPER ESTIMATED COMPLETION Legacy Union - Phase II 362,500 Goldman Sachs & Lincoln Harris Q3 2020 Legacy Union - Phase

12%

13%

14%

15%

16%

17%

18%

19%

20%

-50,000

0

50,000

100,000

150,000

2014 2015 2016 2017 2018 YTD 2019

Net Absorption SF Deliveries SF Total Vacancy %

NORTHEAST/I-77 FUNDAMENTAL CHARTS

The Northeast I-77 submarket is a relatively immature submarket compared to most of Charlotte which offers landlords and tenants unique opportunities. Located Northeast of Charlotte’s CBD, the submarket runs along I-77 and is located east of Lake Norman, Charlotte’s largest lake. The Northeast submarket includes notable office parks such as Harris Corners, The Park at Huntersville and Kenton Circle. These locations among others are highly sought after by tenants due to the nearby desirable communities, affordable cost of occupancy and being located highly accessible office locations.

N

12%

13%

14%

15%

16%

17%

18%

19%

20%

21%

2014 2015 2016 2017 2018 YTD 2019$17.00

$18.00

$19.00

$20.00

$21.00

$22.00

$23.00

$24.00

$25.00

$26.00

Average Asking Rate $ Total Vacancy %

RECENT LEASE TRANSACTIONSSIGN DATE

PROPERTY SF TENANTTRANSACTION

TYPE

Q319 Alexander Building 13,041 Holston Medical Group New

Q319 Storrs Building 9,827 ATD New

Q319 The Linville Building 8,646 Shapiro & Ingle Renewal

Q219 Harris Corners I 11,924 Allscripts New

Q219 The Linville Building 4,865 Hilsmier New

SUBMARKET REPORT

NORTHEAST I-77Q3 2019

1,827,698 SFSupply

$24.11Gross Avg

Rental Rate87%

Occupancy

4,942 SFYTD Absorption

KEY SALE TRANSACTIONSSALE DATE

PROPERTY SFSELLER BUYER

PRICE / $PSF

Q219 705 Griffith St 54,487Canvas Capital

Healthcare Trust of America$10.2M / $187

Q418Jetton Medical Buildings

44,893Flagship Healthcare Montecito Medical

$13.8M / $307

Page 13: Q3 2019 CHARLOTTE - f.datasrvr.com · PROPERTY SF OWNER DEVELOPER ESTIMATED COMPLETION Legacy Union - Phase II 362,500 Goldman Sachs & Lincoln Harris Q3 2020 Legacy Union - Phase

JESSICA BROWNExecutive Director

+1 704 887 3023

[email protected]

DAVID DORSCHSenior Director

+1 704 335 4441

[email protected]

GRANT KEYESSenior Associate

+1 704 887 3021

[email protected]

©2019 Cushman & Wakefield. All rights reserved. The information contained in this communication is strictly confidential. This information has been obtained from sources believed to be reliable but has not been verified. NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, IS MADE AS TO THE CONDITION OF THE PROPERTY (OR PROPERTIES) REFERENCED HEREIN OR AS TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION CONTAINED HEREIN, AND SAME IS SUBMITTED SUBJECT TO ERRORS, OMISSIONS, CHANGE OF PRICE, RENTAL OR OTHER CONDITIONS, WITHDRAWAL WITHOUT NOTICE, AND TO ANY SPECIAL LISTING CONDITIONS IMPOSED BY THE PROPERTY OWNER(S). ANY PROJECTIONS, OPIN-IONS OR ESTIMATES ARE SUBJECT TO UNCERTAINTY AND DO NOT SIGNIFY CURRENT OR FUTURE PROPERTY PERFORMANCE.

Sources: Cushman & Wakefield Research, Dallas Regional Chamber of Commerce, Moody’s Analytics, Real Capital Analytics, Costar, U.S. Chamber of Commerce.

About Cushman & Wakefield

Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers ex-ceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 51,000 employees in 400 offices and 70 countries. In 2018, the firm had revenue of $8.2 billion across core services of property, facilities and proj-ect management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.