Drugmaker Pozen extends lease in Chapel Hill

Posted on February 20, 2009 by - In the News, Office, Triangle

February 20, 2009
The News and Observer
…The Triangle’s office vacancy rate climbed to a three-year high of 14.5 percent at the end of 2008, as companies have cut back or closed down, according to Karnes Research of Raleigh. In the Chapel Hill area, the rate climbed to a five-year high of 15.9 percent, up from 10.5 percent a year earlier….
Read Entire Article

Construction Update: Duke Energy Center

Posted on February 15, 2009 by - Charlotte, Construction Update, Office

Construction Status February 2009

February 2009 Construction Update

February 2009 Construction Update

Despite the economic uncertainty construction continues on the 48-story office tower at 550 S. Tryon St.; however, the signage will change as Duke Energy moves its Charlotte headquarters to the site. The tower, which was first dubbed Wachovia Corporate Center, will now be anchored by the Duke Energy. The Charlotte-based utility company had previously planned to occupy approximately 240,000 square feet, but will now occupy approximately 500,000 square feet of space in the building. In addition to occupying floors 15 to 22, Duke will be taking floors 36 to 48, which were originally planned for Wachovia.

KARNES Perspective: Charlotte Office Market Overview – 4th Quarter 2008

Posted on February 6, 2009 by - Charlotte, KARNES Perspective, Office

By Andrew Jenkins, Managing Partner, Karnes Research Company

A total of 44.2 million square feet in 529 multi-tenant, for lease buildings greater than 15,000 square feet comprised the Karnes Charlotte office inventory during the fourth quarter of 2008. New construction in the office sector yielded 635,000 square feet during the fourth quarter as construction completed on four office projects. Supply-side pressure from new completions totaling 1.99 million square feet during 2008 was nearly three times the level reported during 2007 and was the highest level reported since the 2.15 million reported in 2001. Demand, as measured by net absorption, contracted during the fourth quarter of 2008 by 31,924 square feet, resulting in a 1.3%-point increase in vacancy from the 12.2% reported in the third quarter of 2008. Net absorption totaling 670,794 square feet during 2008 was also outpaced by new supply, resulting in a 2.3%-point increase in the regional office vacancy rate. Despite the increase during 2008, the fourth quarter 2008 office vacancy rate of 13.5% remains below the 14.3% reported in the fourth quarter of 2005 and the 16.5% rate reported at the end of 2004.

Supply-side pressure from new office construction during 2009 will be derived primarily from the Uptown Charlotte office market as nearly 3.2 million square feet was under construction at the end of 2008. With the scheduled completion during 2009 of the 1.5-million-square-foot Wachovia Corporate Center, the 750,000-square-foot 1 Bank of America Center, the 390,000-square-foot NASCAR Plaza, and the 360,342-square-foot 440 South Church building all uptown, the Charlotte market appears poised to challenge its record of 3.6 million square feet of completions set in 1999. After yielding nearly two million square feet of new office space during 2008, the suburban office market will likely experience a reprieve during 2009 as only 222,882 square feet was under construction at the end of 2008. Future supply-side pressure could come from the 3.6 million square feet of office space that remains proposed within Charlotte’s suburban office market; however, significant pre-leasing is likely to be required before construction on any substantial portion of this space would begin. (more…)