Charlotte, North Carolina’s apartment market appears to have turned the corner, according to Michelle Accetta, market analyst with Real Data. “Occupancy rates have improved in the last 6 months as development activity slowed,” she says. “Occupancy rates are expected to improve slowly over the next year as employment growth recovers.”

Lowe’s new corporate headquarters has opened in Mooresville, which will create several thousand jobs over the next few years. This will continue to fuel the apartment market’s rapid growth along the Interstate 77 North corridor. The eastern portion of the Interstate 485 beltway, which will expand access in that area, is nearing completion. Downtown Charlotte continues to flourish with the new NBA arena and Johnson & Wales University underway.

Southeast, Northeast and North continue to be active areas of development. In addition, Southwest Charlotte has emerged as a hot area with several new projects coming on line.

Colonial Properties Trust and Continental Communities each have entered the Charlotte market with projects underway in the northeast and southeast parts of the city.

“The most distinct projects are occurring in downtown Charlotte where two new mid-rise apartment communities catering to the upscale urban lifestyle have opened,” notes Accetta. “Charlotte Cotton Mills offers distinct warehouse/loft style apartments. Fifth & Poplar, located a block from the ‘Square,’ offers an amenity package beyond anything Charlotte has seen before, including a full-service grocery store on the ground floor.”

The average monthly rent in Charlotte is $695 with downtown rents topping the market at an average $1,137.

Vacancy rates have improved from 12.7 percent in February to 11.2 percent in August. Downtown has the highest vacancy rate at 18.3 percent due to the completion of more than 600 units in the last 18 months, which increased the area’s inventory by nearly one-third.

“Downtown will be an area to watch for its unique product,” Accetta says. “Other corridors to watch for future development include the I-485 outer loop and the proposed light rail corridors.”

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