New construction taps the brakes

Apartments, retail, industrial and office were all sluggish in Charlotte in 2023, data shows

The following article appeared in the Jan. 31, 2024, edition of The Charlotte Ledger, an e-newsletter with smart and original local news for Charlotte. We offer free and paid subscription plans. More info here.

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From go-go to no-go: 2023 was slower than usual for commercial real in Charlotte, data shows; ‘holding pattern’ seen amid high interest rates

by Tony Mecia

The growth story that has long characterized Charlotte — a fast-changing uptown skyline, omnipresent construction cranes and loads of new apartments — took a different turn last year.

New data shows that 2023 was the slowest year for new commercial construction in at least several years across most major real estate categories, including apartment complexes, industrial space and retail shops. Meanwhile, with just a few exceptions, the start of new construction of office space remained nearly nonexistent.

New apartments and industrial buildings were started at the slowest pace in the Charlotte region in three years, and retail hit its lowest mark in at least 10 years, according to data from real estate information service CoStar Group.

New office construction rose slightly from 2022’s multi-year low, but that’s mostly because of just two office developments that broke ground last year: The Thread in Rock Hill and Commonwealth in Plaza-Midwood.