Colliers Charleston Multifamily Report: Charleston’s multifamily building boom slowing as market catches up
December 23, 2024
Commercial Real Estate Research & Forecast Report
Q3 2024 Charleston Multifamily
Market Highlights
Following its single largest quarter of deliveries since 2017, Charleston’s multifamily occupancy saw a gradual decline as the market rebalances following several quarters with high levels of new construction. Asking rents declined slightly as upscale units increasingly offer concessions to attract residents in a competitive environment and developers focus on “attainable” housing in a market in which housing cost growth has outpaced income growth in recent years.
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Key Takeaways
- Rents fell as deliveries outpaced absorption
- Attainable housing is increasingly a segment of focus in a high-cost market
- Distance to employment centers is a continuing factor as Charleston’s population grows rapidly
Summary
Overall performance has been strongest in submarkets closest to the Charleston peninsula, while outlying areas have seen occupancy recover at a slower rate as long commute times create friction. Rapid delivery of new units hasn’t substantially diminished investors’ appetite for the market, however, as Q3 saw the highest transaction volume in two years as capitalization rates settled near 4.97%.
About Colliers
Colliers | South Carolina is the largest full-service commercial real estate firm in South Carolina with 66 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 25 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 68 countries, our 22,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. With annual revenues of $4.4 billion and $96 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, X @Colliers or LinkedIn.
