Charlotte’s office market showed real momentum in the second quarter of 2025, with leasing activity nearly matching pre-pandemic highs. Per the CoStar Charlotte Office Market Report, roughly 1.06 million square feet of space was leased, the fourth straight quarter of positive absorption, the first time that’s happened since 2019. For tenants, this signals both opportunity and caution as the market shifts.

Vacancy and Availability
The CoStar Charlotte Office Market Report also shows the market vacancy rate is holding at 14.8%, up from historic lows but stable compared to the large jumps of the early 2020s. On paper, this elevated vacancy suggests leverage for tenants, especially in older Uptown towers where vacancy exceeds 40%. But the picture changes when looking at newer buildings in South End or recently renovated trophy spaces, where availability is closer to 10%.

For tenants, this means options abound…but not all options are equal. Organizations looking for high-amenity, modern environments will find more competition and higher rates. On the other hand, businesses open to well-located but older buildings may be able to negotiate stronger concessions.

Leasing Trends
Leasing demand has been fueled by Charlotte’s strong job growth, particularly in professional and financial services, which expanded 5% year-over-year, according to the CoStar report. New-to-market companies are making commitments: Trimont signed for 68,000 square feet at One South, Coinbase leased nearly 59,000 square feet at 110 East, and AssetMark added 48,000 square feet in South End.

These deals illustrate a continued flight to quality, where tenants prioritize new or newly upgraded space even if it means paying more. For tenants still weighing space needs, now is the time to tour and negotiate, before options narrow.

Rents and Concessions
Market-wide asking rent growth is positive but modest at 1.4% year-over-year, CoStar reports. South End trophy towers are pushing into the mid-to-high $50s per square foot, while older Uptown towers have dipped into the low $30s. Many landlords of mid-tier buildings are offering significant tenant improvement allowances, often exceeding $100 per square foot on long-term deals, and several months of free rent.

Tenants should recognize the bifurcated market: while top-tier space will remain pricey and competitive, the broader pool of older supply gives negotiating leverage elsewhere. Companies willing to consider an “A-minus” building — renovated but not brand new — can capture value without sacrificing location.

Limited New Supply
Another factor working in tenants’ favor is an absence of new construction. Deliveries have slowed to a decade-long low, and most proposed projects are on hold until pre-leasing commitments improve. That means today’s vacancy is unlikely to grow much higher. As leasing continues to rebound, the balance could shift back toward landlords in coming years.

Takeaways for Tenants

• Act soon if quality space is a priority. Trophy buildings are limited, and competition is increasing.
• Leverage concessions in older buildings. Landlords are motivated, and deals are favorable.
• Think long-term. With construction stalled, today’s plentiful options may not last if absorption continues.

Overall, Charlotte’s office market is stabilizing, and tenants currently hold more leverage than they may in the near future. The second half of 2025 may be the best window in years to secure favorable terms in the Queen City’s office market.

Interested in finding a spot for your business in a Charlotte NC-area office real estate space? Want to make sure you avoid costly mistakes in the process? Call us at 704.219.0908, email Barrett@FowlerPropertyAdvisors.com, or contact us to schedule an appointment using the button below.