Low vacancy rates are driving distribution center development near Charlotte airport

A real estate company is expanding is warehouse and distribution center space near Charlotte’s airport, developing three new buildings targeting the expanding market of shipping and logistics.

Minneapolis-based Meritex bought the CLT Logistics Center, located just south of Charlotte Douglas International Airport, in 2016 for $46.3 million, along with 14 adjoining acres. The site is also near the intermodal rail yard and Interstate 485.

Now, the company said it plans to develop three new buildings with up to 220,000 square feet of additional space. The first building, totaling almost 80,000 square feet, is planned to be complete in summer 2018. The building is being developed on a speculative basis, with no tenants signed yet.

“With favorable property fundamentals and increasing demand from small- to mid-sized users, we feel the

development will be well-received in the market,” said Matt Wagner, director of acquisitions at Meritex, in a statement.

Foundry Commercial will lease and manage the project. Eric Riddlehoover, a principal at Foundry, said industrial vacancy rates are at about 4 percent. That’s lower than vacancy rates for apartments and office space in Charlotte, partially a consequence of the increasing ubiquity of online shopping.

The area south of Charlotte Douglas around Yorkmount Road is dominated by distribution centers and light industrial buildings.

This story was originally published December 8, 2017 at 7:30 AM with the headline "Low vacancy rates are driving distribution center development near Charlotte airport."