Construction complete, more on the horizon
- Two new buildings totaling 150,000 square feet are added to the suburban markets.
- Overall market rents are higher across all sectors than one year ago.
2017 Market Recap
The Charleston market is vibrant and continues to strengthen due to new construction, increasing employment, tightening vacancy and increasing rental rates. The overall market vacancy rate has steadily decreased throughout the past year from 8.96% during the fourth quarter of 2016 down to as low as 7.41% during the third quarter of this year. Now it is 8.79% after the delivery of new construction to the market this quarter. The market average full service rental rate has increased to $25.68 per square foot, up from $24.64 per square foot one year ago. From this time last year, the Charleston market has absorbed 277,177 square feet, the majority of which was in the Central Business District and Lower North Charleston submarkets.
The Charleston market vacancy rate rose to 8.79% from 7.41% during the third quarter of this year; likewise, the market absorption was -81,852 square feet this quarter. This rise in vacancy and drop in absorption was largely attributable to the 150,000 square feet of new construction which was delivered to the market this quarter. The overall market full service weighted rent also dropped slightly, from $26.92 per square foot to $25.68 per square foot. These declines are seen as temporary.
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