Colliers Charleston Retail Report: Absorption and construction increase to end 2023
March 14, 2024
Commercial Real Estate Research & Forecast Report
Q4 2023 Charleston Retail
Market Highlights
Charleston’s construction pipeline grew to 560,226 square feet in the fourth quarter of 2023, making up 45.33% of South Carolina’s total retail square feet under development. Demand remained strong with an increase in preleasing activity and lease transactions contributing to the increase in net absorption to 64,245 square feet. The increase in absorption allowed vacancy to decrease to 3.77%, despite the delivery of 14,505 square feet and the increase of overall lease rates to $32.30 per square foot.
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Key Takeaways
- Construction increased to 560,226 square feet
- Net absorption, vacancy and overall lease rates improved from the third quarter of 2023
- Market competitiveness continues to increase with additional pre-leasing activity
Forecast
Strong overall population growth in South Carolina has been a large driving factor of retail performance improvements, with increases of 22.23% in Charleston County, 45.75% in Berkeley County and 25.09% in Dorchester County since 2010. Growth is expected to continue with quality retail product transaction velocity increasing, however, Mt. Pleasant submarkets and master-planned communities may continue to face challenges with limited availability.
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 23 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 66 countries, our 19,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. With annual revenues of $4.3 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, X @Colliers or LinkedIn.
