85 J.T. Williams Lincoln Druid Hills University Heights North Park Oakview Terrace Washington Heights Sugar Creek Lakewood Oaklawn Park Double Druid Hills Oaks South McCorey 85 Heights Tryon Hills Enderly Smallwood Biddleville Greenville North Park Charlotte WEST Lockwood END Seversville Villa Optimist Heights Ashley Park Wesley Heights Park Plaza FOURTH WARD Hills 1 Mile 2 Miles THIRD 3 Miles WARD Belmont Bryant Park UPTOWN FIRST WARD Plaza Midwood Westover West Boulevard Hills SECOND WARD Wilmore 74 MIDTOWN Commonwealth Revolution Brookhill Elizabeth Park SOUTH END Chantilly Cherry Dilworth Coliseum Southside Drive Center City Partners’ Park Focus Area Includes: 74 • Uptown (Charlotte’s Central Business District - CBD) • South End Eastover • West End • Midtown Sedgefield Park Road/ The term Center City Myers Freedom Park refers to the ‘3 Mile Ring’ Park or the neighborhoods within 3 miles of “The Square” at Trade and Tryon streets. Light Rail Streetcar Planned Streetcar OVERVIEW CONTENTS The annual State of the Center City report highlights the growth and development of Charlotte’s urban core. 02 04 06 Development Work This report is prepared by Charlotte Center City Partners (CCCP), Changing a 501(c)4 not-for-profit corporation that envisions and implements Leagues strategies and actions to drive the economic, social and cultural development of Charlotte’s Center City. The vision for Charlotte Center City is a viable, livable, memorable and sustainable place with modern infrastructure, a tapestry of great urban neighborhoods and a diversity of thriving businesses. 12 18 22 As defined in this report, Center City includes Uptown, which is Live Shop Play Charlotte’s Central Business District (CBD), South End and a portion of the Midtown neighborhood. Data associated with the term ‘3 Mile Ring’ pertains to the neighborhoods within 3 miles of “The Square” at Trade and Tryon streets. 28 32 On The Go On The Horizon Changing Leagues Across Charlotte’s Center City you see transformation, growth, renewal and an overall heightening of the city and its national profile. We are more than merely one of America’s “cities to keep an eye on”. Charlotte’s Center City is one of the country’s fastest growing urban centers due to talent in–migration, transportation, investment, our quality of life, affordability and new development. Looking beyond the cranes, and into the statistics, it is clear to see why Charlotte is changing leagues. Charlotte Center City ranks in the top 10 for U.S. downtown office construction, a list that includes Philadelphia, Seattle, Denver, Chicago and Dallas. In 2016, $2 billion in real estate projects were under construction, more than the entire period from 2010-2015. The cycle is far from complete, with another $2.7 billion of planned development. Institutional investors have discovered Charlotte, driving the maturity of our office market. Since 2005, there has been a 72% increase in the amount of institutionally-owned office space in Uptown Charlotte, offering increased asset liquidity. This change has improved market fundamentals, making the city more attractive to a broader spectrum of investors and office developers. As we have changed leagues, we have enjoyed an in-migration of diverse, educated talent that is outpacing our competitors. Professionals are moving here, particularly to our urban neighborhoods, drawn by the overall affordability of the city’s housing, the growing transportation network and our amenities. They stay for the quality of life they find from cycling to whitewater, breweries to ballet, and an opportunity to join us in shaping the city. This talent growth will continue to be strong within the financial services and fintech sectors, with rapid expansion of the professional, scientific and technical services jobs fueling Center City’s 20% employment increases projected over the next five years. The eyes of the nation’s investors, businesses and talent are on Charlotte. Built on a foundation of game changing construction projects, peerless affordability and diverse urban amenities, it is easy to see why Charlotte Center City has changed leagues. Pat Riley Michael J. Smith Chairman, President & CEO Board of Directors 2 2016 Top Trends On The Map For Growing Discovered By Amenities For Well Connected Investors Neighborhoods Retailers Everyone 5.3 Million Square Feet of 27,200 People Estimated 3.4 Million Square 18 Million Annual Visitors 4th Most Connected Office Planned or Under to Live in Center City Feet Leasable Retail in Uptown Airport in the World Construction in Center City 12% Lower Central 11% Increase in Hotel 40% of Charlotte’s $2.7 Billion Investment Business District Rents 6.2% Average Retail Occupancy Since 2010 Population Linked by Planned in Stonewall than Peer City Average Vacancy Rate Public Transportation Corridor 1 in 9 Work in Hospitality to Uptown 19% Increase in Average 847,000 Square Feet 7% Uptown Office Vacancy Home Sale Price Per of Retail Planned 2 Million+ Seats Filled 100,000 Charlotte Workers Square Foot Over 5 Years or Under Construction at Sporting Events can be in Uptown within 39% Lower Office Rent in in Uptown 15 Minutes Charlotte than U.S. Average $73,931 Average Uptown 22,300 Pedestrians Daily 17,500 New Degreed Household Income at Trade and Tryon 22.6 Miles of Light Rail Residents Move to and Streetcar Open Charlotte Each Year $105,305 Average or Under Construction Uptown Wage 3 Development FAST FACTS 5.3M Square Feet of Office Space Planned or Under Construction AN EXPANDING SKYLINE Development grows opportunity in 2016 The development boom continues completed in 2016. Six hotels 777,3 9 2 Square Feet of Retail at a brisk pace across all sectors. will open adding to a market Space Planned or Under In 2017, two new high-rise office with seven consecutive years of Construction towers will open in Uptown increasing occupancy and room adding needed product to the rates. Retail space continues market. Delivering to a market to be built including more than 9,725 where demand continues to 70,000 square feet of ground Housing Units Planned exceed supply, 11 multifamily floor conversions. or Under Construction projects under construction will add to over 2,200 units already 2,671 Hotel Rooms Planned or Under Construction 54% Multifamily Units Planned or Under Construction are in Center City 59% Square Feet of Office Space Under Construction is in Center City PRESENTED BY mvalaw.com 4 DEVELOPMENT Upon completion, planned and under construction projects will yield enough space for 26,500 workers, 16,500 residents, 975,000 yearly overnight visitors and 88 new shops and restaurants. Development in Center City accelerated in the second half of the decade. Driven by a strong economy, a solid talent pool and transportation infrastructure, developers have been eager to take on projects across all classes. OFFICE RESIDENTIAL HOTEL RETAIL 2007 - 2011 2012 - 2016 2016 - 2020 8,432,139 5,937,986 13,429,847 SQUARE FEET SQUARE FEET SQUARE FEET Source: Charlotte Center City Partners 5 Work FAST FACTS 7. 4 % Office Vacancy Rate in Uptown BUSINESS THRIVES Talent, infrastructure and investment come together $29.23 in Center City. Average Rent in Uptown Center City offers a diverse services also play a key role business climate with a mix in Center City’s economy. The 729,000 of international, national and attraction is a high quality work Square Feet of Office regional firms. The financial force, a central location in a Space Planned or Under Construction in South End services industry has been joined robust region, and accessibility by a growing list of energy and and knowledge-sharing among technology firms. Health care, industries and firms. government and educational $22.78 Average Rent Per Square Foot in South End PRESENTED BY cbi-nc.com 6 WORK “Center City Charlotte has been the perfect place for AvidXchange to thrive and develop into the largest software company headquartered in Charlotte. It combines everything we have needed to grow our business: access to talent, proximity to all of the amenities of Center City Charlotte and a unique real estate offering that appeals to our technical and creative workforce. This is why we are so excited about our move into our new corporate campus at the AvidXchange Music Factory.” - Michael S. Praeger, Chief Executive Officer and Co-Founder, AvidXchange, Inc. TALENT INFRASTRUCTURE INVESTMENT 15.6% 4+ 50% of the Jobs in Center City are in STEM Fields Providers Offering 1 GBPS in Uptown Increase in Annual Rate of Venture Capital Funding in Charlotte since 2010 44 49% 300MBS 4 $236M STEM Related Higher Growth in the Number Broadband Upgrade was State-of-the-Art Data of Venture Capital Funding was Invested in Charlotte Education Programs of Residents with Completed in 2015 Centers are Now Open Companies in 2015 Computer and Math in Uptown Degrees Since 2010 11 8 27% 74 40% Staffing Agencies Major Tech Consulting Lower Energy Costs than Wireless Communications of the State’s Top 25 Equity and Capital Firms are in with Concentrated Firms with Over $289 the National Average for Towers within 3 Miles Center City Accounting for Almost $6.7 Billion Focus on IT Million in Sales in 2015 Commercial Electric Rates of Uptown 7 WORK CLASS A OFFICE SPACE IN CHARLOTTE 49% Central Business District Uptown ranks within the top 10 central PERCENT OF OFFICE SPACE UNDER CONSTRUCTION IN CHARLOTTE business districts nationally for new office construction among Chicago, Atlanta, Denver and Seattle. Uptown has almost half of the Class A office space in Mecklenburg 59% County. There are also numerous Class B and C options and nearly Central 100,000 square feet of coworking spaces. In 2016, the Charlotte Business market offered affordable rents, 39% below the national average. District 8 Sources: JLL WORK The central business district commercial real estate market has matured with broad participation from institutional investors.