CHARLOTTE, N.C. -- Development firm Stiles Corp and real estate managers JLL have just topped the soon-to-be 3-story, 64-thousand square foot 300 West Summit office building in South End.
- There has been a 35 percent increase in office rental rates in Midtown and South End
- There is a surge of South End office construction
- Development previously slowed down because of the cost of construction
"This is the most in demand market we have in Charlotte as of today,” JLL managing director Charley Leavitt said. He says a new surge of South End office construction is coming off an extended drought.
“Development slowed down because the cost of construction began to rise,” Leavitt said. Rental rates weren't high enough to cover the cost.
Average office rental rates in Midtown and South End have jumped from $24.68 per square foot, to $33.38. A 35-percent increase in 5 years, according to JLL.
“And that rise in the rental rates has allowed us new construction opportunities,” Leavitt said. “We could build ten more [office developments] and I don't think we would satisfy the demand in South End."
Midtown and South End have the lowest office vacancy rate, according to JLL, and the highest average rental rate in the city.
“This area is so desirable because of the multi-family boom that we've experienced over the last ten years, the amenities that have come to the area,” Leavitt said. “For a leasing guy it couldn't be better."
Office construction in Uptown still out paces South End, but total vacancy rates are about 5 percent higher, according to JLL.