Charlotte’s industrial real estate market has seen a significant surge over recent years, fueled by factors such as increased e-commerce activity, manufacturing demands, and its strategic location along major highways. This growth shows no signs of slowing down, as developers continue to build to meet the needs of businesses looking for modern, high-quality industrial spaces.

One of the key drivers behind this expansion is Charlotte’s position as a logistics hub. The city benefits from its proximity to major interstate highways like I-77 and I-85, along with access to multiple rail lines, the port of Charleston, and the Charlotte Douglas International Airport. These transportation routes make Charlotte an ideal distribution center for companies seeking to serve the Southeast and beyond. This has led to a spike in the construction of distribution centers and warehouses throughout the region.

Several areas around Charlotte are seeing concentrated industrial growth. According to the latest Costar industrial report:
“Small-bay space is in especially high demand in urban submarkets with limited industrial supply and centralized access to the region’s businesses and people. The I-85/Beatties Ford Road submarket, for example, lies adjacent to Charlotte’s fast-growing central business district with quick access to suburban home-building hotspots such as Lincoln County and Lake Norman.

There, the sub-50,000-SF availability rate is 2%, and older spaces are filling rapidly. In July 2024, Lightspeed Construction Group leased the 1971-built, 6,000-SF 439 Lawton Street, which was on the market for less than a month.”

Gaston County, located just west of the city, is another such area. Offering affordable land and quick access to Charlotte’s core, Gastonia has become an attractive spot for companies looking to expand their industrial footprint. With large parcels available for development, the area is positioned to attract more national and regional tenants. As an example, Lynddahl Telecom’s 54,600-SF lease at 408 Brook Street in the Gaston County city of Belmont came at a $10.25/SF NNN asking rate in February 2024.

Southwest Charlotte (extending into Ft Mill and Rock Hill in York County SC) has also emerged as a focal point for industrial activity, particularly along the I-485 corridor. This area has become home to several logistics companies and manufacturing facilities around Lakemont Business Park and Galleria Blvd, thanks to its direct highway connections and proximity to the airport. Additionally, large tracts of land that can accommodate modern industrial complexes have drawn interest from developers and businesses alike.

Another area seeing rapid development is North Charlotte, particularly around the Concord and Kannapolis regions. With access to I-85 and affordable land compared to closer-in locations, these northern areas offer opportunities for companies seeking both manufacturing and distribution space. Developers are working to meet the demand by constructing new facilities designed for flexibility and scalability. For proof of the viability of this area, look no further than Amazon’s 198,000-SF new lease in Concord and Eli Lilly’s 800,000 SF medical device manufacturing facility at The Grounds at Concord.

As the market continues to grow, investors and developers are focusing on offering state-of-the-art industrial properties that meet the specific needs of modern tenants. These properties often feature larger square footage, higher ceilings, and advanced energy efficiency systems, catering to the needs of logistics, e-commerce, and manufacturing businesses.

The industrial boom in Charlotte is being shaped by strategic development in key areas that balance transportation access with the availability of affordable land. With continued investment in these locations, Charlotte is positioning itself as a major player in industrial real estate for years to come.

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