On Dec. 10, 2025, ULI Charlotte held its annual Trends in Real Estate luncheon at the Mint Museum Uptown. The event began with a presentation from Chuck DiRocco, Director of Real Estate Research at PwC, which published the 2026 Emerging Trends in Real Estate report in partnership with ULI. 

The theme of the 2026 Emerging Trends in Real Estate was “Navigating the Fog.” Now it its 47th year, the report provides an outlook on real estate investment and development trends, real estate finance and capital markets, property sectors, metropolitan areas and other real estate issues. ULI and PwC researchers interviewed over 500 individuals, and survey responses were received from almost 1,250 individuals.  

DiRocco presented the national report with specific concentration on the Charlotte metro area. Uncertainty about tariffs, interest rates, inflation and migration were primary concerns for respondents.  

Demographics, not business cycles, define the labor supply, which is aging, as fertility and immigration rates have dropped in recent years. Employers continue to compete to attract talent. The difference between the number of U.S. born population turning 20 versus 65 has shrunk and is now nearly one to one. As fertility rates have dropped and women are increasingly dropping out of the workforce, immigration now determines workforce growth – as immigration drops, the workforce will contract. Construction labor in particular relies on foreign-born labor, which represents 24 percent in North Carolina, and as high as 40 percent in states like California, Texas and Florida. The limited labor supply means rising costs for real estate.  

Since the Great Recession, there’s been a divergence between GDP and CRE inventory. Particularly since COVID, there’s been more emphasis on making the right space work for office and fewer physical stores for retail. Housing had been a primary focus of the report for the past eight years but is less so now. The multifamily inventory is now greater than household formation. In Charlotte, new stock is concentrated on urban luxury assets, where returns hinge on the submarket selection.  

Rising inflation and higher tariffs on building materials have driven up both operating costs and capital expenses. Residential demand is closely linked to demographics and migration patterns, with the aging U.S. population creating potential opportunities in senior housing and younger populations driving student housing in certain markets, while self-storage and data centers are also high-growth areas.  

For Markets to Watch, Charlotte placed 14th overall, up from 18th last year. Dallas ranked #1, with Nashville as #6, Raleigh/Durham as #11 and Atlanta as #13. For homebuilding specifically, Charlotte dropped to #20 overall from #17 in 2025. Dallas also ranked #1 in homebuilding with Atlanta at #8, Raleigh/Durham at #37 and Nashville at #39 – all three dropping from last year.  

Following DiRocco’s presentation, the discussion panel took the stage, composed of Rhea Greene, Managing Partner of Office Leasing at Trinity Partners; Emanuel Neuman, Co-Founder of Spandrel Managing Partners, LLC; Tammy Whalen, Economic Development Sr. Manager at Duke Energy; and moderator Tracy Dodson, Chief Operating Officer and Head of Economic Development at the Charlotte Regional Business Alliance. 

Neuman emphasized the abundant supply of Class A apartments, noting that 2025 was tough but a reset and concessions will burn off. Charlotte is a frontrunner of other markets Spandrel is invested in and there’s more demand for high-rise instead of mid-rise due to its differentiation. He cited the 32-story 400 South Tryon building that they recently acquired as an excellent conversion opportunity and they plan to reskin the building, which allowed a 30 percent discount to a full demolition.  

For office space, there’s been a return to the finance sector with larger-scale projects. The COVID hangover is over, and people are coming back to the office. When competing for economic development relocation choices, Charlotte is now competing more with bigger markets like Atlanta and Dallas. In the Carolinas, Greenville, Raleigh and Columbia are rebounding but not as robust as Charlotte. Greene stated that prior to COVID, Class A and B office rents were too close together and Class A rates needed to be higher for Class B to absorb. With the “flight to quality” – as investments have been made in older office buildings, tenant demand and rental rates increase – landlords thave been able to be strategic and drive-up rent growth which has doubled the gap between Class A and Class B rents that existed 5 years ago and is now 28%. There is a desire for heightened amenities and walkability which has fared well for assets like One South. 2026 will be a race to new construction, with many new projects such as Queensbridge being fully leased before it even delivers. Similar to Uptown’s office resurgence, Ballantyne has seen some repositioning due to more placemaking, and York County is also emerging. Suburban office had been considered less desirable, but reinvestment has improved the perception.  

Whalen noted that at Duke Energy is investing at a level they’ve never seen before. Currently, Duke has 100 projects in the pipeline requesting 50 megawatts or more, some in the 300- to 500-megawatt range. Rural areas are seeing major growth due to land affordability. Every day, 157 people move to the Charlotte region, increasing the energy demand. Over the next three years, Duke will be building eight new substations and investing in 18 bank additions or upgrades. In response to the demand, especially for speculative developments, Duke has created new guidelines and processes for developers to pay the cost up front, which can be recouped once they’re up and consuming power at the level predicted. Duke Energy efficiency programs are becoming more robust, with a state mandate to be carbon free by 2050.  

Panelists agreed that the passing of the transit bill was positive for the Charlotte market, noting that it’s important to stay ahead of the curve for large developers to consider Charlotte. Commute times are important when companies compare markets, and parking ratios will go down if transportation options go up.  

To read the full 2026 Emerging Trends in Real Estate report, click here.  

Summary provided by Angela Vogel Daley, VP of Strategy & Operations at Yellow Duck Marketing