When Google leases a large industrial space in North Carolina, it can push the needle of local industrial leasing toward positive absorption.

Google has been named as the new lessee of a massive industrial warehouse in Rowan County and is eyeing an adjacent site as well, the Charlotte Business Journal reported.

The 723K SF building, referred to as KC 100, is located in the Overlook 85 industrial park at 1894 Old Beatty Ford Road. Documents show the company has an 88-month lease term, the Observer reported. Google has two five-year renewal options for the space.

The warehouse was developed by New Jersey-based Hudson Capital Properties.

A 1M SF industrial building is planned for the adjacent site, KC 300, and Google has the first rights to lease it, the CBJ reported.

There is no information yet on how Google will utilize KC 100.

The company has maintained a presence in North Carolina for 15 years and has offices in Durham. Last month, Google announced a $1B investment to expand its data center campus in Caldwell County. It is also building a data center near Charleston, South Carolina.

The single lease makes up a significant portion of the region’s total industrial occupancy gains so far in 2026.

Net absorption in Charlotte surpassed 1M SF in the first quarter this year, the third consecutive quarter the local market has reached this figure, according to a Colliers industrial market report.

The report found that steady leasing demand and moderate supply growth helped to bring vacancy down to 8.13%. That vacancy rate should remain stable in the near term, the report states.

A Q1 CBRE industrial report stated that big-box availability for space over 500K SF remains "notably scarce," causing supply limitations for larger users. The space that Google occupied was one of the few remaining big-box industrial spaces in the area, the CBJ reported.