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adamparish

Downtown Vacancy Rate Lowest in Nation

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I was just listening to real estate podcast and heard that Charlotte has the hottest downtown in the country. In addition, the current vacancy rate is 3.1%. This low number is mainly the result of supply and demand. Also, here is a really great web-site that shows all of the public real estate investment trust in North Carolina. Only one of the public REITs are based in Charlotte - Cogdell-Spencer which owns health care buildings.

http://www.reitmedia.com/reit-directory.ph...te&state=NC

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I was just listening to real estate podcast and heard that Charlotte has the hottest downtown in the country. In addition, the current vacancy rate is 3.1%. This low number is mainly the result of supply and demand. Also, here is a really great web-site that shows all of the public real estate investment trust in North Carolina. Only one of the public REITs are based in Charlotte - Cogdell-Spencer which owns health care buildings.

http://www.reitmedia.com/reit-directory.ph...te&state=NC

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The vacancy rate is part of what is driving a few of the new towers that will have large office components and is suposedly one of the reason Trump began looking here. As great as it is to have such a low rate, the downside is it can hold back large relocations or new HQ's here -- no where to go! It's great that a good bit of new office will be done over the next year or two.

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Won't change the percentage a bunch but the unannounced plans for the Uptown Caberet property will have 2 or 3 floors of office space and I think the property across the street at the market will have some as well.

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^ Am I understanding this correctly... Uptown Cabaret is going to be demo'ed? I thought they just put a bunch of money into renovations.

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^ Am I understanding this correctly... Uptown Cabaret is going to be demo'ed? I thought they just put a bunch of money into renovations.

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The CBJ was reporting last Friday that downtown's vacancy rate is expected to drop to 1.7% soon. This is seen as the 3rd lowest vacancy rate ever in the country, since vacancy rates began being tracked in 1985.

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Not to make the dredded ATL comparison but wasn't this the type "hot" market thing that fueled its commercial growth. Now would be the time to get those partners together and put up a couple of towers while the market is hot. I'm guessing the 1.7% takes in to account of all of the condo towers nearing completion. Those people are going to need jobs and not all of them will want to drive or even own cars. Heck if I had the opportunity I would live in Uptown and rely on public transportation for my mobility needs. Of course that includes the vision of retail nearby. Lets just see if any of these spec towers includes retail at street level.

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Not to make the dredded ATL comparison but wasn't this the type "hot" market thing that fueled its commercial growth. Now would be the time to get those partners together and put up a couple of towers while the market is hot. I'm guessing the 1.7% takes in to account of all of the condo towers nearing completion. Those people are going to need jobs and not all of them will want to drive or even own cars. Heck if I had the opportunity I would live in Uptown and rely on public transportation for my mobility needs. Of course that includes the vision of retail nearby. Lets just see if any of these spec towers includes retail at street level.

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I don't see the holdup, where are the announcements for our new office towers????

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The towers are under construction!

With the new Boa tower, Wachovia Tower, Nascar tower, Epicentre, Novare, 300 South Tryon, etc there will be a large amount of new space hitting the market in the next 1-3 years. Even with a large sum of this pre leased there will still be a lot of unleased spec space involved. Some of the towers planned or already u/c are as a result of developers already knowing where the downtown market was headed prior to the latest vacancy #'s being released.

The great thing about this low vacancy is the increase in total downtown office sq ft. Healthy cities with good functioning transit systems have a good ratio of downtown vs suburban office space. Even a 35-40% market share for downtown is considered healthy. Downtown essentially has to keep up with the pace of suburban growth. Places like the triangle area where a vast majority of the office market is suburban will have a tough time implementing rail transit.

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^ Just to throw out some numbers.

According to CBRE, approx. 38% of Charlotte's office space is located Downtown. Of the new office buildings under construction, 70% of the square footage is going downtown. After completion of all buildings currently under construction, downtown will account for 41% of office space.

This does not include proposed buildings. Downtown, this would include 300 S. Tryon and Novare, and in the suburbs, several more buildings at Ballantyne and Whitehall.

Additional buildings for uptown COULD include Trump and Flagship Capital (the old Renaissance Apts site)

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^ Just to throw out some numbers.

According to CBRE, approx. 38% of Charlotte's office space is located Downtown. Of the new office buildings under construction, 70% of the square footage is going downtown. After completion of all buildings currently under construction, downtown will account for 41% of office space.

This does not include proposed buildings. Downtown, this would include 300 S. Tryon and Novare, and in the suburbs, several more buildings at Ballantyne and Whitehall.

Additional buildings for uptown COULD include Trump and Flagship Capital (the old Renaissance Apts site)

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If we had a ~500k SF office tower coming online right now it would be perfect. Too bad no one had this foresight.

I honestly don't think another 30 story purely office building wouldn't oversaturate the market. That's how strong it is.

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