CHARLOTTE — One of Charlotte’s most challenged office markets is about to see a big change in its fortunes. The University City area, where vacancy rates have risen over the last four years to reach a high of 22.8%, is on the cusp of welcoming a major corporate hub.
Pennsylvania-based The Vanguard Group’s move into a vacant, 700,000-square-foot office campus next year will drop University’s vacancy rate to about 16%, the lowest it’s been since 2021, according to CoStar, an industry data analysis firm. Vanguard plans to move 2,400 of its Charlotte-area employees to that location.
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Brokers and analysts expect it will be a transformative event — for the office market as well as the retail and multifamily sectors and the overall housing market.
Vanguard acquired the sprawling campus off Governor Hunt Road, originally built to be the East Coast headquarters for Missouri-based Centene Corp., in April for $117 million. The company declined to comment for this story.
Sagar Rathie, managing director at Crescent Communities, said Vanguard’s move will not only prompt a significant decrease in office vacancy but also signal its commitment to the submarket to other office users. The combination is certain to draw interest from new tenants, Rathie said.
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