Vacancy rises as market works through recent supply wave
Charlotte’s overall vacancy rate increased to 12.0% in Q1 2026, up from 11.6% one year earlier, continuing its rise from lows near 5.0% in 2022. Net absorption closed the quarter slightly positive while new deliveries added to available space, reflecting a mismatch between occupancies and recently completed supply. Vacancy pressure continues to be concentrated in submarkets with higher levels of speculative development, while select areas are still recording tenant move-ins. Leasing activity remained active across logistics, distribution, food and beverage and manufacturing users, highlighted by major commitments such as Utz’s lease in Gaston County and Domtar Paper’s lease in the State Line submarket. Asking rents increased 4.9% year over year to $8.03 per square foot (psf), with remaining availability concentrated in newly delivered speculative and older product.