Charlotte Commercial Office Space for Rent

Q4 2025

Charlotte Commercial Real Estate Market Report

Focus: Q4 2025 Market Trends

Executive Summary

The Charlotte commercial real estate (CRE) market is demonstrating resilience in late 2025, buoyed by strong demographic tailwinds and a stabilizing economy [2, 3]. The Office sector continues to navigate a bifurcation where high-quality "trophy" assets in Midtown and Uptown attract the bulk of demand, leaving older suburban stock with elevated vacancy [1, 2]. Industrial fundamentals remain healthy, though vacancy has ticked up as the market digests a significant wave of new supply [4, 5]. Retail stands out as a top performer with one of the lowest vacancy rates in the nation, while Multifamily demand has rebounded strongly, absorbing record new inventory [3, 7].

TenantBase Proprietary Data [14] highlights the distribution of active tenant demand over the last 90 days (265 total deals):

  • Retail/Storefront dominated market activity with 61.51% of all searches [14].
  • Warehouse was the second most active sector at 24.91% [14].
  • Office accounted for 14.34% of total search volume [14].

Office Market

Market Overview Charlotte's office market is characterized by a continued "flight to quality," with tenants consolidating into newer, amenity-rich buildings even as overall vacancy remains structurally high [1].

  • Vacancy & Availability: The overall vacancy rate rose to 26.6% in Q3 2025, largely driven by large blocks of available space in suburban submarkets [1]. However, newer vintage assets in Midtown are seeing much tighter conditions [1].
  • Net Absorption: The market recorded positive net absorption of 45,499 SF in Q3, a promising sign of stabilization after previous quarters of contraction [2].
  • Rental Rates: Average asking rents remained steady at $35.12 per SF (Full Service Gross) [1]. Class A assets continued to push pricing higher, reaching $38.57 per SF, reflecting the premium placed on quality [1].
  • Market Drivers: Leasing activity year-to-date has reached 3.4 million SF, with the Midtown submarket emerging as the most sought-after destination for new office tenants [1].

TenantBase Activity [14]

  • Demand Share: Office accounted for 14.34% of total search volume [14].
  • Lease Term Preference: Demand is heavily skewed toward short-term flexibility [14]:
    • Less than one year: 52.94% of deals [14].
    • 2-3 Years: 23.53% of deals [14].
    • 3-5 Years: 8.82% of deals [14].
  • Size Requirements: Tenants seeking shorter commitments prefer slightly larger spaces than typical startup requirements. The average lower SF required for a Less than one year term is 1,222 SF, compared to 1,000 SF for a 3-5 Years term [14].

Industrial & Warehouse Market

Market Overview The Charlotte industrial market remains robust, though it is shifting from a period of hyper-growth to one of sustainable expansion as supply catches up with demand [4, 5].

  • Vacancy & Rent: Vacancy fell to 7.8% in Q3 2025, marking a consistent decrease for three consecutive quarters [4]. Average asking rents increased to $10.04 per SF (NNN), driven by continued demand for modern distribution space [4].
  • Demand & Supply: Positive net absorption totaled 1.9 million SF in Q3, pushing the year-to-date total to over 6.8 million SF—a 63.8% increase over the previous year [4].
  • Construction: Development activity has moderated, with 4.0 million SF currently underway, down 13.3% quarter-over-quarter, which will help keep fundamentals tight in 2026 [4].
  • Investment: Sales volume surged to $652.9 million in Q3, indicating renewed investor confidence in Charlotte's logistics prominence [4].

TenantBase Activity [14]

  • Demand Share: Warehouse accounted for 24.91% of total search volume [14].
  • Lease Term Preference: Demand is well-distributed, with a slight edge for mid-term leases [14]:
    • 3-5 Years: 30.77% of deals [14].
    • 1-2 Years: 26.92% of deals [14].
    • 2-3 Years: 23.08% of deals [14].
  • Size Requirements: The average lower SF required for a 3-5 Years term is 11,625 SF, while the 5+ Years term average requirement is 7,500 SF [14].

Retail Market

Market Overview Retail is currently the tightest asset class in Charlotte, supported by limited new construction and strong consumer spending [3, 6].

  • Vacancy & Availability: Charlotte maintains one of the eight lowest retail vacancy rates among major U.S. metros, hovering near 1.9% in some reports [3, 6].
  • Net Absorption: The market recorded steady positive absorption in Q3 2025 as retailers backfill the few available spaces [3, 6].
  • Rental Rates: Tight conditions have supported rent growth of 2.2% year-over-year [3].
  • Construction: New supply is severely constrained, with less than 250,000 SF expected to deliver through year-end, keeping landlord leverage high [6].

TenantBase Activity [14]

  • Demand Share: Retail/Storefront activity dominated with 61.51% of all search volume [14].
  • Lease Term Preference: Retail tenants show a healthy appetite for stability [14]:
    • 3-5 Years: 34.18% of deals [14].
    • 5+ Years: 22.78% of deals [14].
    • 2-3 Years: 17.72% of deals [14].
  • Top Locations: Tenant interest is highest in the following areas (deal counts) [14]:
    • Charlotte (City): 51 [14].
    • Matthews: 8 [14].
    • Rock Hill: 8 [14].

Multifamily Market

Market Overview The multifamily sector is stabilizing as it digests a historic wave of new unit deliveries, with demand remaining surprisingly strong [7, 8].

  • Vacancy & Occupancy: The vacancy rate rose slightly to 8.2% due to the influx of new supply, but absorption has kept pace [7].
  • Rents: Asking rents dipped 1.3% year-over-year as landlords offered concessions to compete for tenants, though growth is expected to return in 2026 [7, 8].
  • Construction: New unit completions are projected to fall by nearly 30% in 2025 compared to the 2024 peak, which will help rebalance supply and demand [8].
  • Demand: The market absorbed 3,547 units in Q3 2025 alone, marking the 11th consecutive quarter of positive absorption [9].

2026 Outlook

Looking ahead to 2026, the Charlotte market is positioned for steady, moderate growth.

  • Multifamily Rebound: With construction starts down 37%, the supply-demand gap will narrow, supporting a projected rent growth of 2.1% by late 2026 [8].
  • Industrial Strength: Net absorption is expected to pick up further as the logistics sector benefits from eased trade uncertainty [10].
  • Investment Returns: Investors are forecasting single-digit appreciation in the 2-4% range, shifting from a rapid growth mindset to one of sustainable value creation [11].

Sources

  1. CBRE: Charlotte Office Figures Q3 2025
  2. Newmark: Charlotte Office Market Overview Q3 2025
  3. Lee & Associates: 2025 Q3 North America Market Report
  4. CBRE: Charlotte Industrial Figures Q3 2025
  5. Savills: Charlotte Q3 2025 Industrial Market Report
  6. Marcus & Millichap: Charlotte Retail Market Report Q3 2025
  7. Northmarq: Multifamily Absorption Elevated, Closely Tracking Supply Growth in Charlotte
  8. MMG Real Estate Advisors: 2025 Charlotte Forecast
  9. Cushman & Wakefield: Charlotte MarketBeats | US
  10. MetLife Investment Management: 2026 U.S. Commercial Real Estate Outlook
  11. Charlotte Real Estate Source: Charlotte Housing Market Forecast 2026
  12. Rental Beast: Q3 2025 Market Report - Charlotte
  13. JLL: Charlotte Office Market Dynamics Q3 2025
  14. TenantBase Proprietary Market Data (Charlotte - Last 90 Days)

Information in this report is aggregated from various third-party sources and synthesized using artificial intelligence and other research tools. While we believe these sources to be reliable, we cannot guarantee the absolute accuracy or completeness of the data. This report is intended for informational purposes to provide market insight and should be independently verified prior to any use in a real estate transaction or legal commitment.