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Rents inching back toward pre-recession highs in Charlotte ‘skyline’ office buildings

Charlotte’s skyline.
Charlotte’s skyline. Getty Images/iStockphoto

If you want to rent office space in Charlotte’s skyline, it’ll cost you: A new report from JLL shows rents for high-profile offices uptown are heading back towards their previous record, set in in 2008.

The commercial brokerage firm’s “Skyline” report covers the two dozen buildings that make up uptown’s skyline. That includes the Bank of America Corporate Center, Hearst Tower, 525 North Tron, the Ally Center, NASCAR Plaza and other similar buildings uptown.

The base rent for those buildings hit $27.82 per square foot in the second quarter this year. That’s up almost 7 percent from the second quarter 2015, when rent averaged $26.04 per square foot in the skyline buildings.

Rents are even higher in new office towers currently under construction uptown, hitting $37 a square foot.

$27.82Skyline office rent average in the second quarter 2016

$26.04Skyline office rent average in the second quarter 2015

$23.42Skyline office rent average in the first quarter 2012 (post-recession low)

$33.45Skyline office rent average in the first quarter 2008 (previous record)

“The Charlotte Skyline has led the resurgence of the city’s office market over the past few years,” said Patrick Byrnes, Charlotte research analyst, in a statement. “Strong leasing, low vacancy, and steadily climbing asking rates have been common themes of Charlotte’s premier group of office buildings.”

Rents for uptown office buildings fell, of course, during the recession and in its aftermath. In the first quarter 2012, Charlotte’s skyline buildings were averaging rents of $23.42 per square foot, according to JLL.

Despite the steady increase, rents at uptown’s skyline buildings still haven’t reached their high water mark. That was set in 2008, when rents peaked at $33.45 per square foot for a piece of the city’s skyline.

Ely Portillo: 704-358-5041, @ESPortillo

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