Absorption for the first half of 2007 in the Charleston, South Carolina office market remains consistent with recent years. Absorption over the first six months of 2007 totaled 175,000 square feet. The first and second quarters of 2007 brought success to many of the 2006 speculative projects, such as Holder Properties’ 103,000 square foot Ashley Overlook project, which is well on its way to achieving 100% occupancy. The prediction for the second half of the year remains positive with a number of significant lease transactions already in negotiation.
As the market continues to absorb space, we anticipate a shortage of large, contiguous office space in the market. The downtown market has only two spaces in excess of 10,000 square feet available. The suburban markets have large blocks of space still available in Offices at Belle Hall in Mount Pleasant, Daniel Island Executive Center and the Mead Westvaco sublease; the markets should look favorably on these buildings in the third and fourth quarters of 2007.
New office growth has been good in the region with continued activity led by the defense sector, as SPAWAR Systems Center, Charleston, has continued to award contracts for a multitude of defense and infrastructure-related assignments. Manufacturing service and support for many economic developments has also helped the office market growth. Both supply and demand of office product have remained steady, even with the recent addition of new product to the market; good tenant improvement allowance and reasonable rental rates are still available. The office market needs sizable amounts of new product in 2008 in order to keep pace with our normal amount of absorption and not lose sizable transactions to neighboring cities.
Download the full report
For more information, including the market summary statistics, download the full research report.Download report