Charleston, SC – Colliers International | South Carolina has released a snapshot of its fourth quarter preliminary data for the office, industrial and retail markets in Charleston.

Office market

The Charleston suburban office market continues to be in high demand and absorbed 111,900 square feet during the fourth quarter of 2018. In addition, there are currently 11 buildings under construction throughout the market that, when completed, will add 602,972 square feet to the market. Due to high demand, absorption will continue to be positive; however, due to new construction growth, the vacancy rate is expected to rise in the next few quarters.

Market statistics

    Change from Q2 2018
  • Market inventory:
13,185,338 SF --
  • Quarterly absorption:
122,810 SF --
  • Market vacancy rate:
13.10% Higher by 32 basis points
  • Average weighted rental rate:
$23.55 Higher by 0.10%

Charleston CBD statistics

    Change from Q2 2018
  • Quarterly absorption:
10,910 SF --
  • Market vacancy rate:
6.66% Lower by 40 basis points
  • Average weighted rental rate:
$32.29 Lower by 1.37%

Charleston suburban statistics

    Change from Q2 2018
  • Quarterly absorption:
111,900 SF --
  • Market vacancy rate:
14.78% Higher by 48 basis points
  • Average weighted rental rate:
$22.56 Higher by 2.31%

Industrial market

Manufacturing space is in demand throughout South Carolina, and the Charleston region is no exception; the manufacturing sector absorbed 67,600 square feet. The overall market absorption was 26,286 and is expected to continue to be positive in the next few quarters. In addition, since last quarter three new buildings totaling 157,000 square feet were added to the market and Charleston still posted a positive absorption; the Charleston industrial market is booming.

Market statistics

    Change from Q3 2018
  • Market inventory:
52,632,113 SF --
  • Quarterly absorption:
26,286 SF --
  • Market vacancy rate:
9.42% Higher by 22 basis points
  • Average weighted rental rate:
$5.73 Higher by 10.62%

Charleston flex/R&D statistics

    Change from Q3 2018
  • Quarterly absorption:
-21,302 SF --
  • Market vacancy rate:
7.46% Higher by 50 basis points
  • Average weighted rental rate:
$9.26 Lower by 0.43%

Charleston manufacturing statistics

    Change from Q3 2018
  • Quarterly absorption:
67,600 SF --
  • Market vacancy rate:
8.34% Higher by 20 basis points
  • Average weighted rental rate:
$4.03 Higher by 1.77%

Charleston warehouse statistics

    Change from Q3 2018
  • Quarterly absorption:
-20,112 SF --
  • Market vacancy rate:
9.91% Higher by 20 basis points
  • Average weighted rental rate:
$5.89 Higher by 13.49%

Retail market

The Charleston retail market is stable. There were no new retail buildings added to the market during the fourth quarter of 2018 and the activity has remained relatively steady, with little variation in the weighted shop space rental rates.

Market statistics

    Change from Q3 2018
  • Market inventory:
14,324,036 SF --
  • Quarterly absorption:
-27,389 SF --
  • Market vacancy rate:
5.53% Higher by 19 basis points
  • Average weighted rental rate:
$20.40 Higher by 0.84%

Charleston core statistics

    Change from Q3 2018
  • Quarterly absorption:
-28,881 SF --
  • Market vacancy rate:
4.36% Higher by 38 basis points
  • Average weighted rental rate:
$22.12 Higher by 6.65%

Charleston non-core statistics

    Change from Q3 2018
  • Quarterly absorption:
1,492 SF --
  • Market vacancy rate:
6.85% Lower by 2 basis points
  • Average weighted rental rate:
$19.15 Lower by 4.01%

Full market reports will be provided in the coming weeks with extensive, final data and more analysis. To receive these reports automatically via email, sign up here.