In another sign that we’re (finally) maybe free from the long, long shadow of the economic crash and recession, office rents in Charlotte’s premier buildings have pushed past their pre-recession highs.
That’s according to a new report from brokerage firm JLL. In the city’s newest and shiniest office towers, owners are getting higher rates for their scarce space, as vacancy rates stay low.
“In premier submarkets Class A buildings are being marketed and reaching the $35.00-$37.00 per square foot range for the first time since the recession in 2008,” JLL analysts wrote in their quarterly market research report.
That’s bringing the whole market up along with the best new buildings. The average Class A office space rent is $27.61 per square foot, up 28 percent since 2008. Class B building rents in Charlotte are at $19.54 per square foot, up a more modest 20 percent.
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And those increases show why developers are confidently building more skyscrapers. Almost 1 million square feet of new office space has hit the market so far this year, and yet total vacancy, at 12.3 percent, is barely up from 11.9 percent in 2016, and still down from 13.2 percent in 2015.
For comparison: Total vacancy peaked at 17.8 percent in 2010.