If you’ve been searching for warehouse space under 5,000 SF in Charlotte, you’ve probably noticed something frustrating: listings disappear within days, the spaces that exist are either run-down or overpriced, and everyone keeps talking about all this “available industrial space” that you can’t seem to find.
You’re not imagining it. Charlotte has two distinct warehouse markets operating simultaneously, and small businesses are stuck in the more challenging one.
Charlotte Has 11% Vacancy—So Why Can’t You Find Space?
Charlotte’s overall industrial vacancy hit 11.9% in Q2 2025, the highest level in years. That number sounds like there should be plenty of options.
The problem is that vacancies are almost entirely concentrated in large distribution centers. Five buildings over 500,000 SF account for 15% of the market’s vacant space. These facilities are built for Amazon-scale operations, yet they remain empty as developers determine why their projections were inaccurate.
Small warehouse spaces tell a completely different story. Nationally, spaces under 50,000 SF maintain just 3.4% vacancy. In Charlotte, small-bay availability hovers around 4% compared to 9%+ for spaces over 100,000 SF.
That gap explains your search experience.
You’re not competing in an 11% vacancy market. You’re competing in a 4% vacancy market, where 79% of all Charlotte industrial leases are signed by businesses seeking spaces under 100,000 SF.
This shortage isn’t going away. Developers have almost no financial incentive to build small warehouse space. Construction costs run $140/SF for small multi-tenant buildings versus $80/SF for large logistics centers. Same land, same permits, but the big building generates far more profit. So less than 5% of new construction targets small-bay spaces, even though this segment represents nearly a third of existing inventory.
Meanwhile, Charlotte’s population grows by 157 people daily. More residents mean more businesses serving them, more contractors building their homes, more e-commerce fulfilling their orders. Demand keeps rising while supply stays flat.
Why Small Warehouse Space Stays so Competitive and is in Short Supply
Developers have almost completely stopped building small warehouse space. The economics don’t work.
Building a 50,000 SF multi-tenant warehouse costs roughly $140/SF. Building a 500,000 SF logistics center costs about $80/SF. Same land, same permits, same general contractor headaches, but the big building generates far more profit.
So developers keep building giant warehouses. Fewer than 5% of new construction nationally targets small-bay spaces, even though this segment accounts for nearly a third of the existing inventory.
Charlotte’s construction pipeline has dropped to its lowest level since 2021, with just 5.9-8.2 million SF under development. Almost none of it is small-bay.
Meanwhile, older small warehouse buildings continue to be demolished for apartments and mixed-use developments. Charlotte’s population grows by 157 people daily. That land becomes more valuable for housing than for the small warehouses your business needs.
The supply shortage isn’t temporary. It’s built into how the market works.
What Small Warehouse Space Actually Costs in Charlotte
Forget the $9-10/SF numbers you see in market reports. Those averages include giant logistics facilities that will never fit your operation.
Small warehouse pricing in Charlotte runs significantly higher:
Space Type
Annual Rent (NNN)
Monthly Cost (1,500 SF)
Small warehouse (under 50K SF)
$12-19/SF
$1,500-2,375 + NNN
Flex space (office + warehouse)
$15-16/SF
$1,875-2,000 + NNN
Class A industrial
$10-12/SF
$1,250-1,500 + NNN
Large distribution (100K+ SF)
$7-11/SF
N/A
Most Charlotte industrial leases are triple-net (NNN), meaning you pay base rent plus property taxes, insurance, and building maintenance. Those expenses add $2.50-4.00/SF annually and can fluctuate year to year. A listing at “$15/SF” actually costs $17.50-19/SF all-in before utilities.
Landlords typically expect 3-5 year terms with a personal guarantee. That means a 3-year lease at $2,200/month puts $79,200 of personal liability on you if your business struggles. Shorter terms are possible but usually carry a 5-15% rent premium.
Co-warehousing offers an alternative: month-to-month terms, all-inclusive pricing, and no personal guarantees. You’ll pay more per square foot, but you avoid long-term liability, unpredictable NNN expenses, and the risk of being locked into the wrong size space. For businesses still growing or testing a new market, the premium often makes sense.
Budget for move-in costs:
- First month’s rent: $1,800-2,500
- Security deposit: $1,800-2,500 (typically one month)
- Last month’s rent: Often required
- Utility deposits: $300-500
- Basic setup (shelving, workbenches): $1,000-3,000
For a typical small warehouse running $2,000/month, plan for $7,000-11,000 due at signing.
Where to Look for Small Warehouse Space in Charlotte
Location matters more in a tight market. Some submarkets offer better odds than others.
Southwest Charlotte / State Line
This is Charlotte’s tightest and most sought-after infill submarket, with vacancy at just 4.1% compared to the 8%+ market average. Strategic access to I-77, I-485, and Norfolk Southern’s intermodal terminal drives demand. Multi-tenant buildings exist, but competition for space is intense. Expect to move fast when something becomes available.
Airport / CLT Area
Charlotte’s premier industrial corridor offers multimodal transportation access and modern facilities. This submarket absorbed significant speculative construction in 2024, creating temporary vacancy elevation in larger spaces. Smaller flex options exist along Westinghouse Boulevard at $13-17/SF. Good for businesses that need airport proximity or logistics infrastructure.
Gaston County (Gastonia/Belmont)
Higher overall vacancy but strong recent leasing momentum. Walmart’s announcement of a $300 million, 1.2 million SF fulfillment center in Kings Mountain signals long-term growth. Current rents in Belmont/Gastonia average around $10/SF, offering 35-40% savings versus infill Charlotte. Good for businesses that can handle a 20-30 minute drive to the city center.
North Charlotte (Huntersville/Mooresville)
Approximately 1.3 million SF under construction, including Bryton Commerce Center. Industrial parks and flex spaces serve manufacturing, distribution, and logistics tenants. This submarket is positioned to capture demand spillover as Southwest Charlotte continues to tighten. I-77 access provides decent connectivity.
What to Verify Before Signing Any Lease
Tour spaces with specific questions in mind. The wrong assumptions become expensive problems after you’ve signed.
Loading access. How will you get inventory in and out? Grade-level drive-in doors work for most small operations. If you receive pallet shipments or ship freight, you’ll need dock-high access. Many small Charlotte buildings only have grade-level doors. Don’t assume based on photos.
Electrical capacity. Standard outlets handle computers and lights. If you’re running equipment like compressors, production machinery, or heavy climate control, verify the space has adequate power. Ask about panel capacity and available circuits. Upgrading after you’ve signed can cost $5,000-15,000.
Climate control. Charlotte summers hit the 90s with 70%+ humidity. If you’re storing anything sensitive (electronics, paper, food products, certain materials), you need climate control. Verify the system works and ask about its age. Replacing commercial HVAC costs $15,000-40,000+.
24/7 access. Your business doesn’t run 9-to-5. Some older multi-tenant buildings restrict after-hours access. Get confirmation in writing, not just a verbal assurance from the leasing agent.
Actual usable space. A 1,500 SF unit with columns, awkward layouts, or wasted corners might only give you 1,200 SF of functional space. Tour in person and think through how you’ll actually use it. Bring a tape measure.
NNN expense history. Ask for the past 2-3 years of actual NNN expenses, not just estimates. These costs can spike when property taxes are reassessed or major repairs are needed. Budget for increases, not the current number.
Zoning and permitted uses. Verify your intended use is allowed. Can you store materials outside? Park commercial vehicles overnight? Operate during extended hours? Get answers in writing before you sign.
Looking for small warehouse space in Charlotte?
WareSpace is opening a new location in Charlotte’s NoDa neighborhood at 322 W 32nd Street in early 2026. Units range from 200-2,000 SF with flexible lease terms starting at 6 months, all-inclusive pricing (no NNN surprises), and move-in ready spaces with loading docks, climate control, and 24/7 access.
FAQ
How much does small warehouse space cost in Charlotte?
Small warehouse spaces under 5,000 SF typically run $12-19/SF annually on a NNN basis. Once you add NNN expenses ($2.50-4.00/SF), your all-in cost reaches $14.50-23/SF per year, or roughly $1,800-2,875/month for a 1,500 SF space. Charlotte prices run about 15-20% above national averages due to strong demand and limited small-bay supply. Budget an additional $7,000-11,000 for move-in costs, including deposits and basic setup.
Where should I look for small warehouse space in Charlotte?
Southwest Charlotte/State Line offers the tightest market (4.1% vacancy) but prime positioning near I-77 and I-485. The Airport/CLT corridor provides modern facilities with flex options at $13-17/SF. Gaston County (Gastonia/Belmont) offers 35-40% cost savings at around $10/SF. North Charlotte (Huntersville/Mooresville) has new construction coming online with good I-77 access.
What’s the difference between traditional leases and co-warehousing?
Traditional Charlotte industrial leases run 3-5 years with personal guarantees, NNN pricing (base rent plus variable expenses), and tenant responsibility for interior maintenance. Co-warehousing operators like Souder Properties and FlexEtc offer month-to-month terms starting at $595/month, all-inclusive pricing, no personal guarantees, and shared amenities like loading docks and equipment. You’ll pay more per square foot for co-warehousing, but gain flexibility and predictable costs.
How long are average leases for small warehouse space in Charlotte?
Small warehouse spaces in Charlotte lease within 4-6 months on average. Desirable spaces in tight submarkets like Southwest Charlotte move faster. Once you find a space, the leasing process typically takes 2-4 weeks for traditional leases (credit checks, lease negotiation, buildout if needed) or as little as 1-2 weeks for co-warehousing and flex space operators.
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