Colliers Report: Charleston’s strong demand driving rental rates higher
May 2, 2022
Commercial Real Estate Research & Forecast Report
Q1 2022 Charleston Industrial
Market Highlights
Demand for industrial space in Charleston follows the demand trends for industrial space across the United States. Scarce supply and insatiable demand forces the vacancy rate downward quarter-over-quarter. During the first quarter of 2022, the Charleston industrial market has dropped to 2.93%, its lowest vacancy rate in decades. With unprecedented demand and limited supply, Charleston lacks ready-to-occupy industrial space larger than 25,000 square feet. The space that is available has a number of tenants competing for it, creating the urge for tenants to make decisions quickly.
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Key Takeaways
- New construction continues to be pre-leased
- Tenants are utilizing temporary outdoor storage space while awaiting construction completion
- Demand is strong enough to withstand increasing rental rates
Summary
With such a quick increase in demand rental rates are also increasing exponentially. Demand, fueled by the Port of Charleston and resulting in quick industrial absorption, is strong enough to withstand increasing rental rates, forced upward by construction costs and Class A deliveries, through year-end 2022 and beyond.
About Colliers
Colliers | South Carolina has over 140 staff members, including 62 licensed real estate professionals, covering the entire state with locations in Charleston, Columbia, Greenville and Spartanburg. Total 2021 brokerage volume exceeded $1 billion, which included over 590 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 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 17 million square feet of office, industrial, retail and healthcare properties. Colliers’ staff hold 54 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 and set a new record by managing a portfolio of projects approaching $1 billion in volume during 2021.
Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 67 countries, our more than 15,000 enterprising professionals work collaboratively to provide expert advice to real estate occupiers, owners and investors. With annualized revenues of $3.0 billion ($3.3 billion including affiliates) and $40 billion of assets under management, we maximize the potential of property and accelerate the success of our clients and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn
