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December Investment Sales in the Tank as Demand Hits Lowest Level Since 1998

CHARLOTTE-A new CB Richard Ellis Inc. office and industrial sales overview, however, holds out hope for a better Charlotte area performance this year as new construction slows and the markets strengthen.

By Robert Anthony | Updated on February 15, 2001

CHARLOTTE-Over the past year and a half, the real estate markets have seen a rise in interest rates, slowing rent growths and smaller office and industrial investment allocations from institutional investors, according to a new CB Richard Ellis market report on area office and investment sales. The result has been a slackening demand for investment assets, Ryan D. Clutter, the brokerage’s investment associate, tells Globe St.com.

Looking at the remainder of the year, Clutter says, “One thing that’s different is that the amount of construction proposed or under way is about a million sf less than it was at this time last year.” But with new construction moving down and a sublease market moving up, it’s keeping the fundamentals in the marketplace at a good number, says Clutter who compiled the report.

“Markets like Atlanta operate consistently on a 10% vacancy, but that city has a much more aggressive development mindset and has much more speculative development than you have in Charlotte,” the associate says.

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