Charlotte’s office market entered 2025 with strong momentum, building on a first quarter defined by positive net absorption and a notable rise in multi-market tenant activity. Expansions are outpacing contractions by a three-to-one ratio, reflecting a growing confidence among business leaders across industries.

While some large vacancies still influence overall market statistics, the sentiment on the ground is one of optimism. Companies are steadily bringing employees back to the office, and many that downsized too aggressively after the pandemic are now reassessing their space requirements.

Demand is especially high for Class A office space in this Sun Belt hub. Prime properties in top-tier locations are nearly fully leased, pushing rents upward and reducing landlord concessions—despite national headlines about distress in the office sector. The supply of quality sublease space remains tight, and new development is expected to slow once the final spaces at 110 East and Legacy Union are claimed, likely before year-end.

If 2024’s performance is any indication, Charlotte’s office sector may be poised for sustained growth into 2025 and 2026. CBRE’s leasing team alone closed over 1.4 million square feet of transactions last year, with more than half of those being long-term deals for new or expanding tenants.

One of the most encouraging trends is the rise in average deal size across all asset classes and submarkets. Full-floor leases of roughly 25,000 square feet are becoming routine, signaling a healthy and evolving office market that’s well-positioned for the years ahead.

Source:  RE Business