McMahon

Charlotte, North Carolina, is a prime warehouse and distribution center due to its location and access to Interstates 77 and 85. “We are seeing some new interest in the Charlotte market from outside firms and companies,” notes Tom McMahon, senior advisor with Sperry Van Ness/McMahon & Associates. “I am also seeing several local firms relocate and expand within the local market.”

He continues, “Due to the soft market I do not see any new significant developments. Building starts have declined and the expectation is that they will remain flat at least for the first half of 2004. This, of course, will help with the decline of vacancy rates.”

The vacancy rate for Charlotte’s industrial market is approximately 11.6 percent. Quoted rental rates, including flex space, range from $3.60 to $8.20.

“Keep an eye on the flex space markets in the Northeast and Southwest submarkets,” says McMahon. “They are seeing a 22 percent vacancy at this time.” The majority of industrial development is taking place in the northeast and southwest areas along with the South Iredell area due to the relocation of Lowe’s Home Improvement Warehouse headquarters and the infiltration of the retailer’s vendors.

“I believe we should start seeing a big decline in vacancy rates in the Northeast and Southwest markets,” McMahon adds.

McMahon was the chairman of the Lake Norman Chamber of Commerce’s economic development committee, which recently headed a 2-year effort to start a regional economic development corporation in North Mecklenburg. “I would watch the North market,” he says. “I think we will start to bear some of the fruits of those efforts.”

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