Patrick Register, Broker, Coldwell Banker Commercial

Invest: spoke with Patrick Register, broker at Coldwell Banker Commercial, about Charlotte’s sustained population growth, shifting investment dynamics across asset classes, and where opportunity still exists for both institutional and entrepreneurial investors. “What used to be an economic driver became people following other people,” Register said, pointing to the demographic momentum shaping long-term commercial real estate demand in the region.

What significant shifts or trends are shaping commercial real estate demand in Charlotte as we look toward 2026?

Charlotte’s story continues to be one of growth, but the reason behind that growth has evolved. Twenty years ago, people relocated primarily for jobs, lower costs, and major employers. Today, many people move here because of quality of life, weather, and family connections. Over time, that initial job-driven migration created a ripple effect, and what used to be an economic driver became people following other people. Parents, siblings, and extended family followed, and that has created momentum that is not strictly tied to one employer or one economic cycle.

That shift matters because it creates resilience. When people move for family or lifestyle reasons, economic shocks tend to have less impact on migration patterns. Even when parts of the economy slow, population growth continues, which supports long-term demand across commercial sectors.

That growth does come with challenges. Housing inventory remains tight, which has pushed retail availability to historic lows. Rents have increased, and finding affordable space has become more difficult. Still, the underlying momentum remains strong. Charlotte has multiple factors smoothing out volatility, which allows for longer-term planning compared to markets that rely more heavily on a single industry or economic driver.

How would you describe the current appetite for investment across asset types such as retail, industrial, office, and multifamily?

It depends on the segment and the type of investor. For smaller, undeveloped land parcels under $1 million, demand has softened compared to a few years ago. Many buyers in that space are small business owners who traditionally like to park excess cash in land. With tighter margins and more caution recently, those buyers are holding back.

That said, when land is usable for specific purposes, demand is still strong. Industrial land, in particular, remains highly sought after. Population growth creates service needs, which means companies need locations closer to their customers. Traffic congestion has also pushed businesses to reconsider where they operate. Companies that once tolerated longer commutes for their fleets are now willing to pay a premium to be closer in.

Retail tells a similar story. Small retail spaces, especially under 5,000 square feet, are in extremely high demand. In many cases, landlords do not need to negotiate on rental rates or concessions because they have multiple tenants competing for the same space. Negotiations now focus more on long-term protections for tenants rather than upfront economics.

Larger retail and big-box spaces can be more challenging, but that nuance often gets lost when people talk broadly about retail. The same applies to industrial. Smaller warehouses are extremely competitive, while larger speculative developments have slowed somewhat as developers become more cautious.

How are higher interest rates and tighter lending conditions influencing investment decisions?

Inside the city, demand remains strong enough that sellers often do not need to offer concessions like seller financing. Outside the core, the picture changes. Higher interest rates have increased required down payments from banks, which has made seller financing more attractive to owners who previously would not have considered it.

When interest rates were low, sellers had little incentive to offer financing because they could not compete with bank terms. Now, with rates higher, sellers can earn attractive returns through financing. That has opened opportunities for smaller buyers who may not qualify with a traditional lender but whom a seller might be comfortable financing.

This environment helps level the playing field. When capital is cheap, large investors dominate. When rates rise and seller financing becomes more common, entrepreneurial buyers have more paths to transact. It allows deals to happen while keeping prices relatively stable.

What makes Charlotte uniquely attractive as a commercial real estate market?

North Carolina remains a business-friendly state with low corporate tax rates, and Charlotte benefits directly from that environment. The city is also intentional about maintaining low property taxes. Even when assessments rise, tax rates are adjusted to soften the impact.

What makes this particularly compelling is the bipartisan consistency behind these policies. Regardless of political leadership, there has been sustained support for keeping taxes competitive. That stability reduces uncertainty for businesses and investors making long-term decisions.

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.

Where do you see the most opportunity over the next few years?

One of the more speculative but potentially rewarding opportunities is office. Investors are becoming more comfortable acquiring office assets at a discount, often with significant vacancy, betting on long-term recovery. In Charlotte, there is confidence that office demand will eventually stabilize as return-to-work policies evolve.

Beyond the city, secondary and tertiary markets offer compelling opportunities. Places like Salisbury, Statesville, Hickory, and similar towns sit within commuting distance of Charlotte but remain significantly more affordable. These markets often fly under the radar for institutional capital, yet they attract residents priced out of larger cities.

When assets do not trade as quickly, buyers can negotiate more creatively. Seller financing, lower entry prices, and repositioning opportunities are more common. For investors willing to put in the work, those markets offer a path to value creation that is increasingly difficult to find in core urban areas.

How does infrastructure, particularly traffic and transit, impact future growth?

Traffic is one of Charlotte’s biggest challenges. Certain interchanges and corridors have become major bottlenecks, and meaningful infrastructure improvements can take years. While public transit and light rail provide amenities and can boost nearby property values, they are unlikely to significantly reduce congestion.

That reality shapes real estate demand. 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.

You’ve spoken about opportunities for entrepreneurial investors. Why is that important to you?

Commercial real estate is no longer limited to a narrow group of insiders. Today’s investors come from diverse backgrounds, and many are building their portfolios from the ground up. Secondary markets provide an entry point where effort, creativity, and persistence can still create meaningful returns.

In some of these towns, owners have grown accustomed to vacancy and lower expectations. Investors willing to actively lease space, improve properties, and engage the community can unlock value others overlook. That shows there is still room for ambition in the market.

How does Coldwell Banker Commercial support that approach?

Coldwell Banker Commercial is a collaborative network comprising nearly 3,500 commercial professionals spanning over 160 markets while working in harmony with its residential network. That structure provides a ground-level view of the market that purely commercial firms often lack.

Residential brokers interact daily with business owners, investors, and families, offering insight into migration patterns and economic sentiment. That information complements traditional market data and helps inform more practical decision-making.

As a result, the firm serves a wide range of clients, from institutional sellers and financial institutions to first-time commercial buyers. That balance creates a deeper understanding of how the market functions beyond headline metrics.

What opportunities are there in Charlotte?

There are fewer obvious bargains in major markets like Charlotte, but opportunities still exist for those willing to look beyond the obvious. Secondary markets, creative deal structures, and hands-on ownership remain viable paths forward.

Commercial real estate is challenging, but it is not inaccessible. With the right perspective, patience, and effort, investors can still find ways to participate meaningfully in the region’s growth.