Vacancy continued to climb in Q2 2025 as new supply entered the market
The Charlotte industrial market posted an 11.9% vacancy rate in Q2 2025, a 250-basis point (bps) increase from a year ago. This rise aligns with ongoing development that has expanded total inventory to 280.9 million square feet (msf), up from 262.1 msf in Q2 2024. Although construction has slowed, now at 8.2 msf underway compared to 15.5 msf a year earlier, deliveries remain high at 6.0 msf year to date. Among the projects under construction are the 733,830-square-foot (sf) Bryton Commerce Center in the I-77 North submarket and the 594,300-sf Landis Ridge Industrial Park in the Rowan County submarket. Most of this new space has been speculative, adding to the available supply. Despite rising vacancy, asking rents have held firm at $7.93 per square foot (psf), up 6.6% year over year. This suggests landlords remain optimistic on pricing even as overall market conditions soften.