Charlotte Office Investment Volume Jumped in Q1

Charlotte’s office market showed signs of improvement in the first quarter of 2026, according to Yardi Matrix data. Thanks to the closing of a single, high-value deal back in February, the metro’s investment volume landed it in the national top 10.

Still, fundamentals were mixed. Charlotte posted the biggest year-over-year drop in average asking rents among tracked metros, while vacancy also climbed compared with March 2025.

Against that uneven backdrop, local and state officials spent 2025 adjusting the rulebook in ways that could shape what happens next—especially for older, vacant buildings. City Council’s mid-year maintenance update to the Unified Development Ordinance widened where multifamily can be allowed in certain office districts, creating more realistic paths for mixed-use redevelopment or office-to-residential reuse.

North Carolina’s 2025 regulatory reform law will also prevent local governments from requiring mandatory waiting periods before developers can resubmit a denied or withdrawn rezoning or development application, helping projects return faster after revisions.

Office sales pick up, average price outpaces most peers

Charlotte’s office investment activity year-to-date as of March totaled $363 million, ranking among the top 10 metros in the U.S. Houston ($390 million) and Dallas ($859 million) are some of the peers that surpassed it, while Orlando ($215 million) and Phoenix ($310 million) lagged.

Charlotte assets traded at an average of $461 per square foot, trailing only gateway metros. San Francisco posted the highest pricing nationally at $868 per square foot, while Houston ($103 per square foot) and Dallas ($222 per square foot) landed at more moderate levels.

In the largest deal in the metro in the first quarter of this year, Cousins Properties paid $317.5 million for 300 South Tyron, a 638,000-square-foot office building. Barings, which is also the tower’s anchor tenant, sold the property. The asset changed hands for almost $498 per square foot.

Charlotte office development remains muted

As of March, Charlotte’s office development pipeline comprised only 204,544 square feet under construction, according to Yardi Matrix. The metro lagged behind most peers, including Philadelphia (547,665 square feet), Phoenix (622,156 square feet) and Dallas (2.3 million square feet), but fared better than Orlando, Fla. (186,925 square feet).

This figure accounted for 0.3 percent of its total office stock, just 10 basis points behind the U.S. average. Nationally, San Diego (1.7 percent) had the largest share out of inventory. When also taking into account projects in planning stages, Charlotte’s index rose to 1.3 percent.

Only one project was under construction at the time, namely The Rebuilders Campus at Brown Mills Commons in Concord, N.C. The project represents the office component of a mixed-use project that will include retail and housing space designated for individuals experiencing homelessness and housing crisis.

In terms of office completions, only one facility came online during the first quarter. Taylor Capital completed the 71,835-square-foot Carolina Sports Medicine Center, which will also have a 30,000-square-foot expansion.

Vacancy moves higher as asking rents drop

Charlotte’s office sector registered a 130-basis-point year-over-year increase in its vacancy rate as of March. The metro’s figure reached 17.9 percent, just 10 basis points above the national average.

Compared to peer markets, Phoenix (16.6 percent) and Tampa (13.7 percent) have less space available, while Houston (19.5 percent) and Dallas (21 percent) still show elevated availability as many employers continue to phase in return-to-office policies.

In terms of average listing rates, however, Charlotte’s office space registered the steepest year-over-year decline among the top 25 metros. The metro’s figure dropped 9.5 percent, reaching $31.96. however, this was less than $1 below the national average.

Coworking share holds near national average

Charlotte’s coworking footprint totaled 1.7 million square feet across 115 locations as of March, according to CoworkingCafe. This figure accounted for 2.1 percent of the metro’s office inventory—slightly below the 2.3 percent national average.

Among peer metros, Charlotte’s share was on par with Austin’s (2.0 percent) and Houston’s (2.0 percent). Nationally, Miami led the country with a 4.1 percent coworking share.

Regus remained Charlotte’s largest flex office provider, with 194,244 square feet across 15 locations. The company was followed by Souder Properties (151,844 square feet), WeWork (96,916 square feet) and Spaces (82,200 square feet).