2015 Q4 Office Charleston Report

Download Report

Record-Setting Year for Charleston Office Market

Key Takeaways

  • Vacancy rates in the Charleston, South Carolina office market are at historical lows and rental rates are rising as landlords maintain control of the market.    
  • Office-using employment is growing and is at an all-time high with 70,300 jobs in August 2015. 
  • Demand for office space is strong, contributing to declining vacancy rates, soaring rental rates and capital investments.    
  • Construction activity is gaining momentum with several projects under construction and in the pipeline.

Tightest Market in Over a Decade

Companies are expanding quickly in the Charleston, South Carolina office market, contributing to positive net absorption and the tightest market in over a decade.  Occupancy in the Charleston, South Carolina office market continued along its upward path through 2015, ending the year with a total vacancy rate of 7.8%, the market’s lowest vacancy rate in over 10 years.  The vacancy rate is down from 9.4% the previous quarter and 11.7% one year ago.  

The “flight-to-quality” trend that began several years ago is contributing to significant declines in Class A vacancy.  At the end of the fourth quarter of 2015, the Class A vacancy rate for the market was 6.7%, down from 9.8% one year ago and 14.5% in 2010.  Less than 325,000 square feet of Class A space remain vacant in the market with virtually no large blocks of contiguous space available for lease.  As a result, tenants are finding themselves competing for space and oftentimes limited by the space they occupy.

Downtown Charleston remains the focal point of the market and ended 2015 with a total vacancy rate of 6.4%, down from 8.8% one year ago.  New leasing velocity for Class A Downtown space has been limited given the few available options for quality space.  Less than 60,000 square feet of Class A space remain vacant downtown contributing to a Class A vacancy rate of 5.4%.  Class B and C vacancy rates were 7.8% and 4.9% at year-end. 

Download pdf

Download the full report

For more information, including the market summary statistics, download the full research report.

Download report

Charleston office report

2015 Q4 Office Charleston Report

Download Report