Colliers International releases first quarter 2019 market snapshots for Charleston
April 1, 2019
Colliers International | South Carolina has released a snapshot of its first quarter preliminary data for the office, industrial and retail markets in Charleston.
Office market
The Charleston market had two new office building deliveries this quarter, adding 117,714 square feet to the market. In addition, construction activity is robust in the Charleston market; currently, there are 782,126 square feet of office space under construction. The overall vacancy rate rose again from 13.52% last quarter to 13.71% during the first quarter of 2019. Due to quarter-over-quarter construction delivery, the office market demand has been unable to catch up with the market supply. Higher quality available space and new construction delivering to the market caused the average weighted rental rate to rise to $24.38 per square foot this quarter.
Market statistics
| Change from Q4 2018 | ||
|
13,435,554 SF | — |
|
539 SF | — |
|
13.71% | Higher by 19 basis points |
|
$24.38 | Higher by 4.88% |
Charleston CBD statistics
| Change from Q4 2018 | ||
|
-27,496 SF | — |
|
7.67% | Higher by 101 basis points |
|
$32.73 | Lower by 1.36% |
Charleston suburban statistics
| Change from Q4 2018 | ||
|
28,035 SF | — |
|
15.24% | Lower by 3 basis points |
|
$23.07 | Lower by 3.04% |
Industrial market
Thanks to strong logistics, record-breaking Port of Charleston import/export momentum and a growing demand for manufacturers and distributors to be part of a developing industrial hub, industrial demand throughout the Charleston region is high. The market absorbed 654,951 square feet overall and the market rental rates, compared to last quarter, are higher in every industrial sector. The overall average market rental rate rose to $5.21 per square foot.
Market statistics
| Change from Q4 2018 | ||
|
54,197,655 SF | — |
|
654,951 SF | — |
|
8.09% | Lower by 86 basis points |
|
$5.21 | Higher by 5.25% |
Charleston flex/R&D statistics
| Change from Q4 2018 | ||
|
68,571 SF | — |
|
6.38% | Lower by 105 basis points |
|
$8.93 | Higher by 0.22% |
Charleston manufacturing statistics
| Change from Q4 2018 | ||
|
26,024 SF | — |
|
7.46% | Higher by 78 basis points |
|
$3.76 | Higher by 6.52% |
Charleston warehouse statistics
| Change from Q4 2018 | ||
|
560,356 SF | — |
|
8.46% | Lower by 127 basis points |
|
$5.39 | Higher by 7.16% |
Retail market
The Charleston retail market is losing a bit of momentum as the vacancy rates rise across all sectors and the market rental rates for remaining availabilities is slightly lower. No new retail buildings were delivered to the market and, currently, the demand is not high for new retail space.
Market statistics
| Change from Q4 2018 | ||
|
14,324,036 SF | — |
|
-90,387 SF | — |
|
6.17% | Higher by 64 basis points |
|
$20.40 | — |
Charleston core statistics
| Change from Q4 2018 | ||
|
-49,379 SF | — |
|
5.01% | Higher by 65 basis points |
|
$24.23 | Higher by 9.54% |
Charleston non-core statistics
| Change from Q4 2018 | ||
|
-41,008 SF | — |
|
7.45% | Higher by 60 basis points |
|
$17.53 | Lower by 8.46% |
Full market reports will be provided in the coming weeks with extensive, final data and more analysis. To receive these reports automatically via email, sign up on colliers.com.
About Colliers International
Colliers International | South Carolina has over 140 staff members, including 60 real estate professionals, covering the entire state with locations in Charleston, Columbia, Greenville andSpartanburg. Total 2018 brokerage volume exceeded $577 million, which included over 505 sales and leasing transactions. In addition to traditional commercial real estate representation services for our clients, the company is actively engaged in Corporate Solutions and Healthcare Services. Colliers International 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 nearly 12 million square feet of office, industrial, retail and healthcare properties. Colliers International’s staff holds 46 professional designations, the most 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 International (NASDAQ, TSX: CIGI) is a leading global real estate services and investment management company. With operations in 68 countries, our 14,000 enterprising people work collaboratively to provide expert advice and services to maximize the value of property for real estate occupiers, owners and investors. For more than 20 years, our experienced leadership team, owning more than 40% of our equity, have delivered industry-leading investment returns for shareholders. In 2018, corporate revenues were $2.8 billion ($3.3 billion including affiliates), with more than $26 billion of assets under management. Learn more about how we accelerate success at corporate.colliers.com, Twitter @Colliers or LinkedIn.
