The real estate sector in Charlotte is expected to see progress in the coming year. According to a report from real estate brokerage CBRE which has been using the word "Strong" very often in reference to Charlottes real estate sector, Charlotte can expect a boom in the property market. But with this the CBRE warns that this growth can lead to higher rents.
According to the Charlotte Observer, CBRE has reported that the average rent in Charlotte has reached $1000 for the first time this year. And the brokerage expects that the average rent will continue to rise as tenants will likely pay higher for office spaces, retail and industrial locations in the next year.
In addition the brokerage reportedly explains that rising demand is what drives investment in sectors like th real estate. Moreover, CBRE says that institutional investors have also started taking interest in smaller markets as prime real estate locations such as New York see steeper increases in real estate prices.
Charlotte Observer shares was CBRE has written on its report, "Charlotte is benefiting from a lengthy and steady economic recovery. Charlotte is poised to benefit from consistent population and private-sector job growth, industry relocation and expansion within residential markets."
As CBRE has forecasted, Office spaces will see falling vacancy rates and rise in demand which sets the stage for pricier rents. And with tenants expected willing to pay more for these spaces, investments on rental spaces will surge. With this CBRE says that , "More capital will continue to flow into Charlotte."
As for multifamily properties, the brokerage reminds on the possibility of oversupply as Charlotte is already seeing an apartment boom with reportedly 12,300 units being developed. It is said that there will be more to come so CBRE warns on the likelihood of overbuilding. Hopefully the increasing population in Charlotte will keep the demand for these units steady and drive rental rates higher.
