Charlotte’s hot economy is heating up University City’s office market. The largest multi-tenant office building in University Research Park, Cambridge Corporate Center, just sold for 45% more than what the previous owners paid to buy it just four years ago, the Charlotte Business Journal reports.
And that trend will continue, the Journal article adds.
The Business Journal says that a joint venture by Arch Cos. And Lakestar Properties paid $63 million for the 339,544 square-foot office center and 53 acres at Claude Freeman Drive and West Mallard Creek Church Road.
The previous investment group, Origin Capital Partners, paid $43.5 million in 2014.
In 2016, Origin spent $4.2 million to add a 475-vehicle parking deck.
Originally intended as a single-tenant building for a West Coast financial institution, Cambridge Corporate Center now has numerous tenants including Red Ventures, Web.com and Duke Energy.
Investors turning to suburbs
The Business Journal reports that suburban office centers are becoming much more attractive to investors as central city locations in Charlotte and elsewhere soar in both rent rates and sales prices.
That surge in interest is apparent to the University City Partners staff, which spends much of its time helping market office space in the University City Municipal Service District that includes University Research Park.
Prime space available in University Research Park
The MSD has more than 11 million square feet of offices, including about 4.8 million square feet of leasable space.
University Research Park has large tracts available for additional office buildings, including nearly 52 acres recently put on the market by Electrolux beside its North American headquarters.
Mohr Partners is the exclusive listing agent. Details
“With the trajectory for Uptown rents continuing upward and the availability of parking limited due to companies putting more employees in fewer square feet than ever, suburbs are becoming more attractive,” said UCP Planning Director Tobe Holmes.
“University City is poised to take advantage of this trend by offering the same access to talent as Uptown and quick access between key employment and residential centers via transit,” he added.
- Read the full Business Journal Article
- View graphic – Major Employers / Major Offices in University City
- Read and download UCP’s 2018 Economic Development Report