2021 Q1 Office Charleston Report
- New developments will cause rental rates to flatten or fall
- Regional and local businesses are likely to boost positive absorption, while national companies are opting to work remotely
- Due to rising availabilities, tenants can be selective and landlords will be pressed to be creative to renew existing tenants
New development throughout the Charleston office market will renew interest from out-of-market occupiers, but rising availabilities will allow tenants to be selective. In addition, despite national corporate companies downsizing and opting to work remotely, regional and local businesses are returning to the workplace thereby boosting the demand for office product. Rising demand is forcing supply owners to get creative with existing buildings to renew leases redevelopments. Absorption was positive during the first quarter of 2021 with the Upper North Charleston submarket posting 85,096 square feet of absorption, the highest amount in the Charleston market.
A Note Regarding COVID-19
As we publish this report, the U.S. and the world at large are facing a tremendous challenge, the scale of which is unprecedented in recent history. The spread of the novel coronavirus (COVID-19) is significantly altering day-to-day life, impacting society, the economy and, by extension, commercial real estate.
The extent, length and severity of this pandemic is unknown and continues to evolve at a rapid pace. The scale of the impact and its timing varies between locations. To better understand trends and emerging adjustments, please subscribe to Colliers’ COVID-19 Knowledge Leader page for resources and recent updates.