Why Charlotte is winning big in industrial site selection

Key points:

• Charlotte’s industrial market outperformed in 2025, with absorption exceeding deliveries and demand concentrated in newer, high-quality space.
• The region’s logistics advantage is driven by interstate access, freight rail, cargo air capacity, and proximity to major East Coast markets.
• Infrastructure and mobility investments are critical as population growth continues to fuel long-term industrial demand and congestion pressure.

February 2026 — Charlotte’s industrial real estate market is outperforming expectations. With over 6 million square feet of net absorption in 2025 — and a 5.6 million square foot delivery pipeline — the region is proving its long-term value to logistics, distribution, and manufacturing users.

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According to Colliers’ Q4 2025 market report, leasing activity remained robust, particularly in high-quality space. The region recorded over 6 million square feet of positive net absorption in 2025, with 2.23 million square feet absorbed in Q4 alone, outpacing the 5.6 million square feet of new supply. This momentum is expected to continue into 2026, with Colliers projecting absorption to exceed deliveries, which would further compress vacancy. Properties delivered after 2015 captured more than 6.5 million square feet of positive absorption, while older assets saw net losses, confirming a decisive flight to quality among industrial users.

The year closed with several large-scale transactions highlighting this trend. According to Colliers, Walmart acquired the 1.26 million-square-foot Kings Mountain Corporate Center in Gaston County, representing one of the largest owner-user deals of the year. Amazon signed a 449,000-square-foot lease at AXIAL Rapid Commerce Center, while Atrium Health took 318,000 square feet at Meadow Oak — all within facilities delivered after 2020. These moves underscore the preference for recently built, high-quality space. Developers responded with over 34.5 million square feet of new product added since 2022. Meanwhile, asking rents remained stable, closing out 2025 at $9.56 per square foot, based on Colliers market data.

Freight access fuels location advantage

Charlotte’s position at the intersection of I‑85, I‑77, and I‑485 places it within a one‑day trucking radius of much of the Eastern United States. Charlotte’s strategic location—midway between New York and Miami—places over 100 million people within a one-day truck route, making it a natural logistics hub for companies seeking regional reach. The city’s access to major interstates, freight rail, and one of the busiest cargo airports in the U.S. supports fast, multi-modal distribution. Its proximity to Southeastern ports further strengthens its connectivity for national and international supply chains.

According to the Charlotte Regional Business Alliance, the region’s built environment is a key asset, combining infrastructure with affordable, reliable energy. Over half of the power supply now comes from carbon-free sources, making the area increasingly attractive to manufacturers and logistics users pursuing long-term operational and sustainability goals.

During an interview with Invest:, Patrick Register, broker at Coldwell Banker Commercial, noted how these pressures are shifting industrial demand closer to population centers.

“When land is usable for specific purposes, demand is still strong. Industrial land, in particular, remains highly sought after…. companies that once tolerated longer commutes for their fleets are now willing to pay a premium to be closer in.”

This shift is opening up smaller, previously overlooked parcels for industrial development as firms adapt their location strategy.

“As traffic worsens, businesses prioritize proximity. This creates demand for industrial land in unconventional locations, including small or oddly shaped parcels that would have been overlooked in the past. Businesses with fleets or equipment often care more about location efficiency than visibility, which opens new investment opportunities,” Register added.

Infrastructure investment reinforces long‑term growth

Charlotte’s industrial expansion continues, but city leaders warn that transportation infrastructure is struggling to keep pace. In late 2025, officials unveiled a long-range mobility plan centered on a proposed one-cent sales tax that could raise over $25 billion across 30 years. The funding would support road widening, new rail lines, and expanded bus and micro-transit services. 

Officials emphasized that these upgrades must move forward as a unified system — or risk fragmentation and congestion as the city grows. 

In early 2026, Charlotte approved a $569,000 investment to install fiber optic cable in East Charlotte, allowing the city to better manage traffic and prioritize key corridors for public transit and emergency response. Meanwhile, according to RT&S, the North Carolina Department of Transportation committed $16.3 million in freight rail upgrades, including new track serving Mecklenburg County and Charlotte Pipe & Foundry’s $460 million facility. These projects are part of a broader strategy to strengthen freight reliability and intermodal access across the state.

Population growth supports regional scale

Industrial demand is also linked to Charlotte’s continued population expansion, which supports service needs and long‑term space absorption. According to the Charlotte Regional Business Alliance, between July 1, 2023, and July 1, 2024, the 14‑county Charlotte region added 57,300 residents through net migration alone, equal to roughly 157 new people per day — a notable increase from prior years.

This demographic momentum strengthens long‑term demand for industrial space close to growing residential and commercial centers. At the same time, it amplifies pressure on transportation systems and logistics infrastructure as more residents and businesses cluster in the Charlotte area. 

“Charlotte benefits from being the largest market in the Carolinas. When companies consider North Carolina, Charlotte is often the first stop. That scale supports everything from office to retail to industrial demand, and population growth reinforces those fundamentals,” said Register.

Want more? Read the Invest: Charlotte report.