CHARLOTTE, N.C. — Brokerages and banks across the nation and really the world are watching as office space becomes somewhat of a novelty.
"In Uptown Charlotte, 30% of commercial mortgages are in default or a foreclosure stage," explained Yongqiang Chu, Director of the Childress Klein Center for Real Estate.
With interest rates stuck above 7.5%, Chu said banks and lenders have significantly reduced commercial lending.
Companies in Charlotte have tried to downsize, or are moving out of Uptown entirely, to areas like Southpark.
"A lot of Uptown office buildings are valued below the replacement costs, meaning it's actually more expensive to build it than to buy it," Chu told WCNC Charlotte.
Chu says that industry leaders have told him that redeveloping a mixed-use space is a huge challenge and also quite costly.
He believes it's very likely we will see more vacancies and foreclosures as banks prepare for what could be a tumultuous time ahead.
Contact Colin Mayfield at cmayfield@wcnc.com or follow him on Facebook, X and Instagram.
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