Commercial Confidential: NorthPointe Executive Park
Editor’s note: “Commercial Confidential” is a Mecklenburg Times profile of a commercial property in the Charlotte area.
In terms of demand for office space, Downtown and SouthPark dwarf the North submarket, which paradoxically pays off for NorthPointe Executive Park.
Northern Mecklenburg County is home to Northpointe, and John Ball, a senior leasing agent with Charlotte-based Trinity Partners, said, “There’s not as much deal velocity in that submarket” as in Downtown and SouthPark. “Landlords (in the North submarket) have to really get in there and make deals happen because you don’t know when the next deal might come through.”
Ball said one reason NorthPointe has been successful in the 12-or-so years since it was developed is that lack of demand, which in turn caused a lack of large Class A office in north Meck.
With little more than “small condominium office space” in the Lake Norman area, Ball said, Pizzagalli Properties, developer of NorthPointe, correctly identified an opening in Huntersville.
Ball said that even though there is not nearly enough demand for developers to build more office space, the office park by the lake lures two types of tenants: people who live on Lake Norman and don’t want to drive all the way into Charlotte for work, and those who wish to take advantage of the proximity to the Lowe’s distribution center and other industrial space north of the city.
“In the Class A, multitenant office market up here,” Ball said, “there isn’t much more than NorthPointe.”
NorthPointe is 96 to 97 percent occupied, with two of the four buildings in the office park completely full. The average occupancy rate in the North submarket is 85 percent, according to Charlotte-based Karnes Co., an area analytics firm.
Ball said his focus remains on keeping rents high, as well as increasing occupancy. He said he is expecting the market to tighten up, and for occupancy to go up a bit, over the remainder of the year.
“I think we’re going to follow the area trend, where the market is tightening up,” he said. “But I’d be lying to you if I said I expect this submarket to be on fire.”
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Center name: NorthPointe Executive Park
Address: Northcross Drive, Huntersville
Square feet: 201,582
Year built: Between 2001 and 2005
Developer: Pizzagalli Properties
Owners: Sentinel Properties
Leasing company: Trinity Partners
Lease rates: $18.50 per square foot, on average
Vacancy rate: 3 or 4 percent
Major tenants (approximate square feet occupied): Newell Rubbermaid (120,000); Everblue (4,500); General Electric (3,000)
Did you know? Newell Rubbermaid is the only occupant of both NorthPointe Three and Four, both of which are 100 percent occupied.