Charleston office market finishes 2017 strong with three consecutive quarters of positive absorption

CBRE has released its Q4 2017 MarketView report on the Charleston office commercial real estate market. Three consecutive quarters of positive absorption show the strength of Charleston’s office market. However, the lack of available space on the Peninsula has forced all market growth to occur in the suburban submarkets.

The lack of available land for development has created a barrier for new office projects on the Peninsula, giving way to downtown Charleston becoming one of the most expensive office markets in the Southeast U.S. with Class A asking rents reaching $36.25 per sq. ft. on a full service basis.

With a lack of availability on the Peninsula, tenants looking for space are forced to find it in other nearby submarkets. Not surprisingly, many tenants are spilling over into the North Charleston submarket, which has experienced more than 230,000 sq. ft. of absorption in the last four quarters, more than all other submarkets combined.

Just as development is stronger in suburban submarkets, so is investment activity. Peninsula owners look to hold office properties as occupancy remains very high and rents continue to rise. Three office projects are underway, which will bring more than 210,000 sq. ft. of space to the market. The latest to start construction is the 65,000 sq. ft. Gateway project in the East Cooper submarket.

For more information, download the Q4 2017 Charleston Office MarketView here: https://www.cbre.us/research-and-reports/Charleston-Office-MarketView-Q4-2017