A closer look at how Charlotte's development boom has increased office real estate costs

CHARLOTTE, N.C. — With a development boom and big demand for office space comes higher real estate costs in the city of Charlotte — both leasing space and building it out.

[ALSO READ: Amazon, real estate giant look to disrupt homebuying in Charlotte, elsewhere]

A recent Cushman & Wakefield report found that Charlotte ranked No. 2 nationally in office rental rate increases, second only to the Midtown South Manhattan submarket in New York. At the end of the second quarter, Charlotte saw average rental rates increase 13% year over year, ranking just above other hot markets — Seattle, where rents grew 11.9%; San Jose, California, which saw an 11.8% hike; and pricey San Francisco, which jumped 9.4%.

Asking rents today in Charlotte average $28.81 per square foot — still largely seen as a discount compared to other U.S. metros — with uptown specifically seeing averages of $33.11, but new construction is leasing at rates well above $40 per square foot today.

Read the full story here.