Charlotte Industrial & Warehouse Market Report | Q2 2026
Key Takeaways
- Charlotte industrial vacancy fell to 7.4% in Q2 2026, per Cushman & Wakefield, the fifth straight quarterly decline and 130 basis points below the 10-year high of 8.7% set in Q1 2025.
- Overall asking rents held at $8.67/SF/yr NNN, flat on the quarter and up 3.7% on the year. Flex rents reached a record $14.10/SF/yr.
- Net absorption was 1.1 million SF in Q2 and 4.1 million SF year to date, the fifth straight quarter above 1.0 million SF. New leasing topped 4.0 million SF.
- 7.2 million SF is under construction, up 1.6% on the quarter as three projects broke ground. Q2 deliveries added nearly 552,000 SF of vacant speculative space.
Browse warehouse space for rent in Charlotte
7.4%
Overall Vacancy (Q2 2026)
$8.67
Avg. Asking Rent ($/SF/yr NNN)
1.1M
SF Net Absorption (Q2 2026)
7.2M
SF Under Construction
Charlotte’s industrial market kept tightening in Q2 2026. Vacancy fell 20 basis points to 7.4%, occupancy grew by 1.1 million SF, and new leasing passed 4.0 million SF for only the third time in three years. The supply wave of 2023 is being absorbed. Gaston and Rowan Counties, outlying I-85 submarkets that saw a surge of deliveries, have posted sharp vacancy declines since early 2025, and preleasing has started to return.
Figures are from Cushman & Wakefield’s Q2 2026 Charlotte Industrial MarketBeat unless noted. Prior-quarter and year-ago comparisons use the figures as restated in C&W’s Q2 2026 U.S. Industrial MarketBeat tables. Rents are net asking, quoted in $/SF/yr. Other brokers measure Charlotte differently. Matthews, citing CoStar data, puts Q2 vacancy at 9.8%. We do not combine the series.
Market Snapshot: Q2 2026
| Metric | Q2 2026 | Q1 2026 (restated) | YoY or note |
|---|---|---|---|
| Overall vacancy | 7.4% | 7.6% | ↓120 bps YoY (8.6% in Q2 2025) |
| Overall asking rent ($/SF/yr NNN) | $8.67 | $8.67 | +3.7% YoY (from $8.36) |
| Flex asking rent ($/SF/yr) | $14.10 | n/a | Record high; +0.9% QoQ |
| Net absorption | 1.1M SF | 3.0M SF | 4.1M SF year to date |
| New leasing activity | 4.0M+ SF | n/a | 7.3M SF year to date |
| Deliveries | About 552,000 SF | n/a | 2.1M SF year to date |
| Under construction | 7.2M SF | n/a | +1.6% QoQ |
| Inventory | 318.6M SF | n/a | 15 submarkets |
Source: Cushman & Wakefield, Charlotte Industrial MarketBeat Q2 2026. Q1 2026 and Q2 2025 values as restated in C&W’s U.S. Industrial MarketBeat Q2 2026 metro tables; C&W’s Q1 report originally showed 7.7% vacancy. n/a = not restated in the Q2 reports.
Rent Trends: Flat Quarter, Up 3.7% on the Year
Overall asking rents held at $8.67/SF/yr NNN in Q2 2026, unchanged from Q1 and up 3.7% from $8.36 a year earlier. C&W describes a market split by product type. Leasing is concentrated in premium-priced Class A space, while larger bulk warehouse/distribution buildings are still marketed below the market average, which holds the overall figure down. Flex space set a record at $14.10/SF/yr, up 0.9% on the quarter, as limited availability supports pricing.
Charlotte asks less than the national average. The U.S. overall rent in the same C&W release is $10.32/SF/yr NNN. Among the submarkets in the table below, warehouse rents run from $7.60/SF/yr in Rowan County to $9.86/SF/yr at the Airport.
For Tenants
Big-box tenants still have room to negotiate on larger bulk space, which C&W says is marketed below the market average. Modern Class A options are thinning, and two tenants preleased space in Q2, including a building that has not started construction. Tenants that need new Class A space in 2027 should start early. The widest choice is in the North submarket (12.1% vacant), Rowan County (17.1%) and Lincoln County (16.2%). Search Charlotte warehouse listings on WareCRE.
Construction Pipeline: 7.2M SF Underway and Growing Again
Charlotte had 7.2 million SF under construction at the end of Q2 2026, up 1.6% on the quarter after three new projects broke ground. Three buildings delivered in Q2, adding nearly 552,000 SF of vacant speculative Class A space, and year-to-date completions reached 2.1 million SF. C&W credits six quarters of slower construction with letting the market absorb the record deliveries of 2023.
Cabarrus County has the largest pipeline at 2.7 million SF, followed by the Airport (1.2 million SF) and North (1.0 million SF) submarkets. Preleasing, subdued for several years, returned in Q2 with two deals, one in a building under construction and one in a proposed project.
For Operators
Fundamentals favor owners of modern space. Vacancy has fallen five quarters running, and occupancy gains have topped 1.0 million SF in each of them. C&W expects rent growth through the end of 2026 as premium new buildings deliver and discounted large vacancies lease. New speculative space is the risk. Q2’s deliveries arrived vacant, and 7.2 million SF more is coming.
Submarket Breakdown: Airport Leads Core Absorption, Cabarrus Leads Construction
C&W tracks 15 Charlotte submarkets across the core city and surrounding counties in North and South Carolina. The four below are the largest or most active by Q2 2026 leasing, absorption and construction.
Southwest
The largest submarket at 50.9 million SF, 6.6% vacant. It absorbed 443,905 SF year to date, the most of any core submarket after the Airport. Furniture provider VS America preleased a full 245,000 SF building at Logistics 485 @ the River District, a proposed project. Essendant’s 300,000 SF move-out at Withers Cove Business Park was the largest single-tenant vacancy of the year. Warehouse space asks $8.97/SF/yr.
Airport
Charlotte’s main logistics submarket, anchored by Charlotte Douglas International Airport and I-77/I-85 access. Vacancy has fallen 660 bps since Q1 2025 to 7.4%, which C&W attributes to limited new deliveries and proximity to the urban core. It absorbed 1.0 million SF year to date and has 1.2 million SF under construction. Its warehouse rent of $9.86/SF/yr is the highest among Charlotte’s core submarkets.
Cabarrus County
Northeast of the city along I-85, with 24.4 million SF and 6.6% vacancy. Prime Beverage signed the quarter’s largest lease, 933,774 SF at 1000 Stanley Dr, immediately backfilling space vacated by Stanley Black & Decker. The county has the metro’s largest pipeline at 2.7 million SF, and Concord Commerce Center and 85 Exchange delivered 392,040 SF and 301,900 SF this year. Warehouse space asks $8.41/SF/yr.
York County (SC)
On the South Carolina side along I-77, with 32.6 million SF and 8.8% vacancy. Atlas Copco expanded by more than 201,000 SF at Rock Hill Commerce Center, and C&W lists Foundry’s CenterPoint Carolinas (Buildings 1 to 3) among the market’s key completions this year. York County also hosted the quarter’s largest sale, BGO’s $105.0M purchase of Legacy Park East, an 851,500 SF bulk distribution facility. Warehouse space asks $8.93/SF/yr.
| Submarket | Vacancy | W/D Asking Rent ($/SF/yr) | YTD Net Absorption (SF) | Under Construction (SF) |
|---|---|---|---|---|
| Southwest | 6.6% | $8.97 | 443,905 | 388,982 |
| North | 12.1% | $9.20 | 132,240 | 1,011,170 |
| Airport | 7.4% | $9.86 | 1,039,843 | 1,214,329 |
| York County | 8.8% | $8.93 | 206,251 | 0 |
| Gaston County | 9.6% | $7.80 | 880,257 | 767,760 |
| Iredell County | 2.8% | $7.75 | 401,503 | 549,968 |
| Cabarrus County | 6.6% | $8.41 | 620,263 | 2,724,615 |
| Rowan County | 17.1% | $7.60 | 378,818 | 0 |
| Lincoln County | 16.2% | $7.62 | 0 | 0 |
| Charlotte total | 7.4% | $8.67 | 4,131,449 | 7,150,728 |
Source: Cushman & Wakefield, Charlotte Industrial MarketBeat Q2 2026, market statistics table (selected submarkets; totals include all 15). Vacancy is overall vacancy; rents are weighted net asking, $/SF/yr.
Co-Warehousing & Flexible Warehouse Space in Charlotte
Charlotte’s large small-business economy creates steady demand for operating space in smaller increments and on shorter terms. C&W attributes the record flex rent of $14.10/SF/yr to limited availability.
Small-bay space is softer than it was, though. For buildings under 125,000 SF, Matthews, citing CoStar data, reports 5.5% vacancy, asking rents of $12.22/SF (up 3.4% year over year) and negative absorption of 295,000 SF in Q2 2026.
Charlotte’s flex demand starts with e-commerce businesses using the metro’s I-85/I-77 access and building trades serving its residential growth. Financial services firms needing records and fulfillment space, Carolinas food and beverage distributors and manufacturing startups add to it.
Browse available co-warehousing and small-bay warehouse listings on WareCRE’s Charlotte marketplace.
Looking for warehouse space in Charlotte?
Key Trends to Watch
1. Vacancy Has Fallen for Five Straight Quarters
Charlotte’s vacancy peaked at 8.7% in Q1 2025, a 10-year high, and has declined every quarter since, to 7.4%. Some of the sharpest improvements came where new supply surged. Gaston County is down 710 bps and Rowan County 480 bps, as demand in those outlying I-85 submarkets concentrated in new Class A bulk distribution buildings. The Airport submarket improved 660 bps over the same period.
2. Leasing Topped 4.0M SF, and Preleasing Is Back
Q2 leasing passed 4.0 million SF for only the third time in three years, driven by 11 leases over 100,000 SF. Two of them were preleases, which had been rare. C&W reads this as tenants committing earlier because available Class A options are limited. Charlotte’s economy supports the demand. Nonfarm employment rose 1.3% year over year, adding 17,800 jobs, seventh-fastest among the more than 100 markets C&W tracks.
3. Small-Bay and Big-Box Are Moving in Opposite Directions
Big-box space is tightening as bulk deliveries lease up, while small-bay space has softened. Matthews reports negative small-bay absorption in Q2, even though its small-bay vacancy of 5.5% is well below its all-size rate of 9.8%. Owners and tenants should price the two segments separately. Full analysis: Small-Bay vs. Big-Box: What the Vacancy Gap Means in 2026. For broader context: Industrial Real Estate Trends & Outlook 2026.
Outlook: What to Watch in Q4 2026
C&W’s Q3 2026 MarketBeats are due in mid-October, with the year-end release to follow. Together they will show whether Charlotte’s recovery keeps its pace.
Vacancy trend. C&W expects vacancy to keep declining as tenant demand stays healthy and preleasing gradually improves. Watch for a sixth straight decline in Q3, below the current 7.4%.
Rent growth. Rents were flat in Q2, but C&W expects growth through the end of 2026 as premium-priced new buildings deliver and discounted large vacancies lease.
Leasing into occupancy. C&W says the faster leasing of the first half positions the market for strong occupancy gains in the rest of the year. Q3 absorption above 1.0 million SF would extend the streak to six quarters.
Find warehouse space in Charlotte
Browse co-warehousing, small-bay, and distribution listings across the Charlotte metro.
Data sources: Cushman & Wakefield Charlotte Industrial MarketBeat Q2 2026 (headline, submarket and product-type figures; rents net asking, $/SF/yr); Cushman & Wakefield Charlotte Industrial MarketBeat Q1 2026 (as-published Q1 vacancy); Cushman & Wakefield U.S. Industrial MarketBeat Q2 2026 (restated Q1 2026 and Q2 2025 figures and U.S. averages; rents NNN); Matthews Charlotte, NC Industrial Market Report Q2 2026, citing CoStar data (all-size vacancy cross-check, small-bay figures, cap rates and sale pricing only). Each report reflects the most recent vacancy, rental, and construction data available at the time of publication. We refresh our reports as new market data is released, and we’re continually expanding coverage to additional metros.
Related Resources
Frequently Asked Questions
What is the current industrial vacancy rate in Charlotte?
Charlotte industrial vacancy was 7.4% in Q2 2026, according to Cushman & Wakefield, down 20 basis points from Q1 and 120 basis points from a year earlier. It has fallen for five straight quarters from a 10-year high of 8.7% in Q1 2025. Submarket rates range from 0.5% in Cleveland County to 17.1% in Rowan County.
How much does warehouse space cost in Charlotte?
The overall average asking rent was $8.67/SF/yr NNN in Q2 2026, flat on the quarter and up 3.7% year over year. Flex space reached a record $14.10/SF/yr. Across the submarkets profiled on this page, warehouse rents run from $7.60/SF/yr in Rowan County to $9.86/SF/yr at the Airport. For buildings under 125,000 SF, Matthews reports asking rents of $12.22/SF, citing CoStar data.
Which Charlotte submarket is best for warehouse space?
It depends on the requirement. The Airport submarket has the highest warehouse rents among the core submarkets and direct airport and interstate access. Southwest is the largest submarket at 50.9 million SF. Cabarrus County, along I-85, has the largest pipeline at 2.7 million SF. York County (SC) offers I-77 access on the South Carolina side, and Rowan and Lincoln Counties have the highest vacancy rates.
How much industrial space is under construction in Charlotte?
7.2 million SF was under construction at the end of Q2 2026, up 1.6% from Q1 after three projects broke ground. Q2 deliveries added nearly 552,000 SF of vacant speculative space, and year-to-date completions reached 2.1 million SF. Cabarrus County has the largest pipeline at 2.7 million SF.
What are industrial cap rates in Charlotte?
Matthews, citing CoStar data, reported an average industrial cap rate of 7.2% in Q2 2026 and an average sale price of $119 per SF. For buildings under 125,000 SF, it reported a 5.7% cap rate and $165 per SF. Cushman & Wakefield’s MarketBeat does not publish a Charlotte cap rate; the largest Q2 sale it recorded was Legacy Park East in York County, 851,500 SF, for $105.0M.
