Centene site in University City could shift from corporate campus to mix of uses

CHARLOTTE — A day after Centene Corp. announced it’s nixing plans for a University City regional headquarters, several questions remain. The most obvious: What will happen to the 800,000-square-foot building set to deliver there in just a few weeks — and the 130-acre site that is largely undeveloped.

Fortune 50 health-care giant Centene told the Charlotte Business Journal on Thursday it is not moving forward with its East Coast headquarters and campus in Charlotte. The Missouri-based company announced the project in July 2020, committing to a $1 billion investment and the promise of more than 3,200 employees. The office building was the first of what was to be a multi-phase development in University City.

Patrick Gildea, CBRE vice chairman, said the University City submarket has historically attracted corporate users seeking large blocks of space. Gildea said that, combined with the quality of the new space, should make the building fairly easy to sublease.

“There has been a significant slow down in corporate expansion and relocation activity both locally and nationally as office-using employers attempt to identify their specific space needs post-Covid,” he said. “Once that activity resumes, which is expected to be after Labor Day, the Centene campus will provide a very attractive option in the market, given its quality of design and construction.”

It’s highly unlikely, Gildea said, that the remaining land will be used for more office construction.

“There’s a significant amount of office supply that needs to be absorbed before anyone would make a significant investment,” he said. “I could see it selling for multifamily or some other type of residential use.”

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(WATCH BELOW: CBJ: Centene drops plans for 3,200-job campus in University City)

CBJ: Centene drops plans for 3,200-job campus in University City

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