Availability opens in Charleston suburban office submarkets
October 27, 2017
CBRE Research has released the Q3 2017 data on the office commercial real estate market in Charleston.
Tight market conditions are forcing tenants to opt for unconventional space to accommodate for growth. T-Mobile recently vacated 60,000 square feet in the Daniel Island submarket to move into 90,000 square feet of converted office space at a former Kmart shopping center in the North Charleston submarket, which has experienced more square feet of absorption in the last two quarters than all other submarkets combined.
While there is increased availability in the suburban submarkets, tenants have demonstrated a clear preference for the Peninsula submarket, where the vacancy rate is 3.4%. Lack of land and development restrictions are preventing developers from delivering new office product. As a result, Class A asking rents on the Peninsula have reached $35.80 per square foot, establishing Charleston as one of the most expensive submarkets in the Southeast.
The following are highlights of the report.
• Modest absorption with little vacancy movement
• T-Mobile relocation demonstrates the necessity for tenants to get creative
• Availability is rising in the suburban markets, not on the Peninsula
• Rapid rate of growth is limiting market options for tenants
• Charleston is among the most expensive markets in the Southeast U.S.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
