New Construction Breaks Ground
Consistent decreases in Class A vacancy over the past two years in the Charleston office market has developers breaking ground on new projects in both downtown and suburban markets.
New construction is underway in the Charleston office market with two new developments breaking ground in Downtown and North Charleston during the second quarter of 2012. In Downtown, Holder Properties broke ground on a 52,000 SF, Class A building located at 174 Meeting Street. The new project will be the home of CertusBank, which is expanding into the area and will occupy 20,000 SF. Asking lease rates for the development reach a new record high of $37.00 per square foot, full-service.
The second project under construction is Faber Pointe. Located in the Executive Park at Faber Place, Faber Pointe is a speculative development Holder Properties. The Class A, 75,000 SF building broke ground after the successful leasing of Faber Centre, another Class A building in the same office park and developed by Durlach Associates and Holder Properties. Both 174 Meeting and Faber Pointe got off the ground after the market continued to see demand for Class A space and as vacancy for this product type decreased each quarter.
The new construction has already prompted the announcements of several other proposed developments within almost every submarket in the Charleston area. In Summerville, MeadWestvaco announced plans for a new office building. A 100,000 SF, Class A office building will be built in Nexton, a mixed-use development with office, hotel, retail and residential components. Located off of Highway 17A and Interstate 26, construction is expected to begin late this year with delivery in the third quarter of 2013. The building is now pre-leasing with space available from 2,500 SF to 60,000 SF.
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