Colliers Report: Lack of New Construction Pushing Rents Higher and Limits Tenants’ Choices
April 6, 2023
Commercial Real Estate Research & Forecast Report
Q1 2023 Charleston Office
Market Highlights
The latest wave of office construction in the Charleston market will end in 2023 with the completion of Morrison Yard, Serendipity at Nexton and the Ice House at Park Circle. While vacancy is currently elevated at nearly 17%, at the current average quarterly absorption of 85,000 square feet, it will fall below 13% in 24 months – the approximate
amount of time it would take to complete construction of an office building started today.
Click here to read the full report.
Key Takeaways
- Vacancy rates have declined for six consecutive quarters
- Rental rates are historically high and will move much higher
- Options for tenants will become very limited in 2024 and 2025
This will impact tenants by limiting their alternatives and increasing the asking rate of any spaces they consider.
About Colliers
Colliers | South Carolina is the largest full-service commercial real estate firm in South Carolina with 62 licensed real estate professionals covering the state with locations in Charleston, Columbia, Greenville and Spartanburg. Colliers is an Accredited Management Organization (AMO) through the Institute of Real Estate Management (IREM) and is the largest manager of commercial real estate properties in South Carolina with a portfolio of over 18 million square feet of office, industrial, retail and healthcare properties. Colliers’ staff hold the most professional designations of any firm in South Carolina. Colliers | South Carolina’s partner, LCK, provides project management services for new facilities and renovations across South Carolina.
Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 65 countries, our 18,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. With annual revenues of $4.5 billion and $98 billion of assets under management, Colliers maximizes the potential of property and real assets to accelerate the success of our clients, our investors and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn
