Strong Market Fundamentals in the Lowcountry Support Continued Investment

Key Takeaways

  • Charleston, South Carolina welcomed significant sales activity throughout the first half of 2015 with a total sales volume of $365 million from January to June 2015.
  • Charleston’s high quality of life, robust job creation and major announcements from Mercedes Benz and Volvo create an ideal environment for investors.
  • Interest in U.S. commercial real estate is strong and increasing over recent years.  Primary markets are becoming saturated and competitive, driving investors to secondary markets such as Charleston.
  • Low interest rates and continued economic recovery offer a positive outlook for the remainder of 2015 and into 2016.

Current Conditions

Improving economies, as well as volatile equity and commodity markets across the globe are driving investment sales in the United States as investors seek stable and secure investments.  2014 was a record year for sales in the U.S. with a total transaction volume of $424 billion, a 17% increase over 2013, according to Real Capital Analytics.  Robust sales activity was also seen in the Charleston, SC market, which ended 2014 with a total sales volume of $866 million.  The strong momentum continued in Charleston through the first half of 2015 with $365.7 million worth of sales at mid-year, a 23% increase over the same time last year.

Various factors are contributing to growing interest in U.S. commercial real estate such as an improving U.S. economy, increased availability of capital and emerging commercial real estate markets.  Additionally, the U.S. offers lower risk than other markets, securing a return of capital for investors.  While primary markets continue to be the focus of a majority of investors, a growing number of institutional and private investors are showing interest in secondary and even tertiary markets.

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