CBRE

FIGURES|CHARLOTTEINDUSTRIAL|Q42025

Blockbusteryearofleasingactivityfosters

stabilizingvacancy

7.5%

TotalVacancyRate

2.3M

Sq.Ft.TotalNetAbsorption

1.5M

Sq.Ft.Completed

r4.2M

Sq.Ft.UnderConstruction

$10.05

NNN/AchievedLeaseRate

Note:Arrowsindicatechangefrompreviousquarter.

KeyTakeaways

-Charlotte’sindustrialvacancydroppedinQ4to7.5%,supportedby2.3millionsq.ft.ofpositivenetabsorption,bringingtotalyear-to-dateabsorptionto9.5millionsq.ft.

-Leasingactivityreached13.2millionsq.ft.year-to-date,settinganewmarketrecord,withlargee-commerceuserscontributingtoelevatedtransactionvolume.

-Developmentactivityincluded4.2millionsq.ft.underconstruction,ledbyprojectssuchasthe898,029-sq.ft.RunwayLogisticsdevelopmentintheWestsubmarketandadditional

buildsinCabarrus,North,andIredellcounties.

-Investmentvolumetotaled$792.9millionforthequarterand$2.0billionyear-to-date,withnotabletransactionsincludingthe$121.5millionacquisitionofKingsMountainCorporateCenter.

-Askingrentsheldsteadyat$10.05persq.ft.,whileavailabilitydeclinedyear-over-year,indicatingconsistenttenantandfurthercreatingscarcityformodern,bigboxfacilities.

FIGURE1:HistoricSupply&Demand

Sq.Ft.(Millions)Vacancy

189%

168%

147%

126%

105%

84%

63%

42%

21%

00%

YTDAbsorptionYTDCompletionsTotalVacancy

Source:CBREResearchQ42025

1CBRERESEARCH?2025CBRE,INC.

FIGURES|CHARLOTTEINDUSTRIAL|Q42025

2CBRERESEARCH?2025CBRE,INC.

MarketFundamentals

Totalvacancydecreasedto7.5%,a150-basispoint(bps)dropyear-over-year.Quarterlynet

absorptionreached2,289,604sq.ft.,up13.6%fromthepriorquarter,bringingyear-to-date

absorptionto9,450,265sq.ft.,an82.5%increasecomparedtolastyear.PositiveabsorptionwasconcentratedintheGaston,Northwest,andIredellsubmarketsthisquarter,ledbya1,256,278sq.ft.occupancyatKingsMountainCorporateCenter.Offsettingoccupancygains,Bosch

vacated312,200sq.ft.at519LincolnCountyParkwayinLincolnCounty.

Overallavailabilitydeclinedby68bpsyear-over-year,ledbya50.8%decreasetoGastonCountyspecifically,causedbythetakedownofKingsMountainCorporateCenter.Subleasevacancy

standsat1,223,111sq.ft.,upslightlyby2.2%sinceQ42024butindicatingnominalchangeinsecondgenerationspaceavailability.

Achievedrentsremainedunchangedquarter-over-quarterat$10.05persq.ft.,postingamodest1.8%annualincrease.Rentalratesareexperiencingorganicgrowth,drivenbylandlord

confidenceandcontinuedsuccessfulleasingoftop-tierassets.

LeasingTrends

Thisquarter,themarketachieved3,594,993sq.ft.ofleasingactivity,bringingtheyear-to-datetotalto13,232,706sq.ft.,anewrecordyearforleasing,surpassingthepriorrecordyearof2022.The449,069sq.ft.leaseatAXIALRapidCommerceintheNorthwestsubmarketwasakey

transaction,reinforcingdemandfrombigboxusers,particularlyinthee-commercesector.

Leasingactivityremainselevatedoverall,drivenbyactivityinthetransportationandwarehousing,manufacturing,andretailindustries.

Tenantsinthemarketarecurrentlyseeking10.9millionsq.ft.ofactiverequirements,withconsumergoods,e-commerce,andmanufacturingaccountingfor46.8%ofthattotal.Thisdemandhasincreasedincrementallythroughouttheyear,despitegeopoliticalshiftsanduncertaintyaroundtariffsandonshoring.

FIGURE2:NotableProjectsUnderConstruction

PropertyNameSubmarketCityDeveloperSize(SF)Est.Completion

RunwayLogistics

Buildings1-7

West

Charlotte

FoundryCommercial

898,029

Q42026

ConcordCommerceCenter

Cabarrus

Concord

HamiltonPropertyCo.

392,040

Q12026

SunPointHuntersvilleNorthHuntersvilleSunCapPropertyGroup306,450Q12026

77BeltwayBuildingB

North

Huntersville

StrategicCapitalPartners

208,918

Q42026

CrossroadsCommerceCenter

Iredell

Statesville

CollettIndustrial

204,120

Q12027

Source:CBREResearchQ42025

FIGURE3:MarketAvailability,bySubmarket

18.0%

4.7%5.7%

6.0%

13.2%

7.1%

12.3%

8.4%

12.1%

Southwest

North

RowanCounty

IredellCounty

CabarrusCounty

Northwest

East

UnionCounty

GastonCounty

YorkCounty

LincolnCounty

West

Central

Northeast

Southeast

LancasterCounty

Source:CBREResearchQ42025

FIGURES|CHARLOTTEINDUSTRIAL|Q42025

3CBRERESEARCH?2025CBRE,INC.

Development&Investment

InQ4,amajorretaileracquiredtheKingsMountainCorporateCenter,aClassAfacilitybuiltin2023,for$121.5million,equatingto$96.71persq.ft.ThesellerwasTheKeithCorporation.

Overall,salesvolumereached$792.9millionacross29transactions,pushingyear-to-datetotalsto$2.0billion,anall-timehighforthemarket.Foreigncapitalwaslessprominentin2025as

privateandinstitutionalbuyersdominatedthisyear’ssales.

Regardingdevelopment,constructionstartsincludedsevenbuildingsatRunwayLogisticsintheWestsubmarkettotaling898,029sq.ft.,alongwithtwobuildingsatNorthChaseattheParkintheNorthsubmarkettotaling337,216sq.ft.

Q4completionstotaled1,506,280sq.ft.;ofthese,thelargestwasBrytonCommerceCenter

deliveringtwobuildingsintheNorthsubmarket,totaling733,060sq.ft.Overall,development

hasslowedfromrecentyears,duetohighervacancylevelsneedingtostabilizeandmunicipalitypushbackonnewdevelopments.

FIGURE4:InvestmentTrends

$2,500$200$180

SalesVolume(Millions$)PricePerSq.Ft.($)

$1,500.--'$120

$2,000$160$140

$100

$1,000$80$60

$500$40$20

$-$0

20152016201720182019202020212022202320242025

InvestmentSalesVolumeOwnerUserSalesVolume

InvestmentPricePerSq.Ft.——OwnerUserPricePerSq.Ft.

Note:Trackedsalesvolumeconsistsoftransactions$5.0mandgreater

Source:CBREResearchQ42025

EconomicOutlook

Charlotte’sindustrialmarketcontinuestobenefitfromsteadyemploymentgrowthandstrongdemandacrosskeysectors.Localunemploymentrateaveraged3.8%thisquarter,upslightlyfrom3.4%inQ42025butbelowtheU.S.averageof4.4%.

Mid-bayinfillpropertiesrangingfrom20ksq.ft.to60ksq.ft.areseeingincreasedinterest,whilebig-boxavailabilityabove700ksq.ft.isbecomingextremelylimited,withonlythreecompetitivespacesremaining.Thisscarcityisexpectedtodrivenewdevelopmentstartsforbig-box

facilitieswithintheyear,aligningwithbroaderexpectationsforconstructiontoaccelerateoverthenext18months.

Absorptioncontinuestooutpacedeliveries,contributingtodecliningvacancyandavailabilityrates.Lookingahead,concessionswillremainafocalpointinnegotiations,butoverallmarketfundamentalssuggestcontinuedstrengthasnewlybuiltspaceisabsorbed,anddemand

persistsacrosscoreindustries.

FIGURE5:Industrial-UsingEmploymentGrowthJobsAdded(000s)

20

15

10

5

0

(5)

(10)

2015201620172018201920202021202220232024YTD2025

ManufacturingTrade,Transportation,andUtilitiesMining,LoggingandConstruction

Source:U.S.BureauofLaborStatistics,November2025

FIGURES|CHARLOTTEINDUSTRIAL|Q42025

4CBRERESEARCH?2025CBRE,INC.

Submarket

Inventory

(Sq.Ft.)

TotalVacancyRate

(%)

TotalAvailabilityRate

(%)

UnderConstruction

(Sq.Ft.)

Q42025NetAbsorption

(Sq.Ft.)

YTD2025NetAbsorption

(Sq.Ft.)

CabarrusCounty

24,063,840

5.6

5.6

694,334

141,836

1,244,451

Central

19,235,413

3.7

5.5

-

(53,813)

159,091

East

1,860,791

15.8

22.3

-

-

(10,141)

GastonCounty

34,965,109

11.6

10.7

173,252

1,306,902

1,973,105

IredellCounty

31,960,445

2.8

5.3

504,120

380,373

1,001,782

LancasterCounty

5,482,559

1.7

1.8

-

-

(45,564)

LincolnCounty

12,317,953

10.7

16.5

-

(306,200)

(104,000)

North

29,145,248

11.9

11.9

1,103,584

(262,379)

525,200

Northeast

3,151,746

20.1

22.6

-

(10,633)

(14,419)

Northwest

11,460,957

3.7

6.3

-

562,106

585,521

RowanCounty

20,623,461

13.8

11.5

199,268

59,776

1,408,844

Southeast

4,047,802

3.2

7.0

-

(1,198)

67,395

Southwest

49,271,802

6.4

10.4

491,658

54,066

350,369

UnionCounty

14,754,543

1.4

1.7

-

4,064

119,267

West

11,926,972

6.9

13.6

898,029

289,338

1,164,284

YorkCounty

33,795,568

8.0

10.2

144,400

125,366

895,480

TOTAL

308,300,419

7.5%

9.2%

4,208,645

2,289,604

9,450,265

Source:CBREResearchQ42025

FIGURES|CHARLOTTEINDUSTRIAL|Q42025

MarkOverview

CBREOffices

SouthEndCharlotte

1120STryonSt,Suite200

Charlotte,NC28203

SurveyCriteria

Includesallindustrialandflexbuildi