CHARLOTTE — Charlotte’s overall office vacancy hit a record high of 26% in the second quarter, but industry experts say that figure doesn’t tell the whole story.
The increase is mostly due to Vanguard Group’s move in May from more than 565,000 square feet at Water Ridge Office Park in the airport submarket to its new owner-occupied corporate campus in University, said Kenlie Chap, CBRE associate research director. Because Vanguard owns the campus, it is no longer part of the competitive set of office properties available to lease to another occupier, Chap said.
“Vanguard’s move out was the biggest of the quarter in that they occupied the (former Centene property), which is now owner-occupied,” Chap said. “That removes (the building) from the quarterly statistic report by national data management standards.”
This means that instead of showing positive absorption for the quarter, despite strong leasing activity, total net absorption was negative 488,000 square feet, according to CBRE’s quarterly office report.
The Pennsylvania-based investment management company moved 2,700 employees into the 700,000-square-foot building after acquiring it for $117 million in April 2024. The sale came nearly two years after St. Louis-based Centene Corp. (NYSE: CNC) abandoned plans for an East Coast headquarters there.
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