CHARLESTON OFFICE MARKET REPORT
Q2 MARKET SNAPSHOT
Q2 HIGHLIGHTS & TRENDS
15,433,654 SF Vacancy
Inventory
• CHARLESTON’S OFFICE MARKET IS HEALTHY AND GROWING WITH NEW CONSTRUCTION AND EXPANSIONS.
• VACANCY AND ASKING RENTS REMAIN STABLE.
$30.05 SF 365,000 SF 304,292 SF
12.9% Asking Rents Construction YTD Deliveries
• NEW PROJECTS THAT WERE SUCCESSFULLY PRE-LEASED FINALLY DELIVERED IN DOWNTOWN IN Q2.
• NEW CONSTRUCTION CONTINUES TO SHIFT FROM DOWNTOWN TO SUBURBAN MARKETS.
• DESPITE NATIONAL OFFICE TRENDS, LEASING ACTIVITY REMAINED STEADY WITH SEVERAL NEW DEALS SIGNED IN Q2.
WWW.BRIDGE-COMMERCIAL.COM
Q2 2023 | CHARLESTON, SC
and greater, excluding medical office and user-owned buildings.
WWW.BRIDGE-COMMERCIAL.COM Lower North Charleston 3,098,108 320,724 43,796 364,520 $24.17 11.8% 126,000Upper North Charleston 2,499,810 321,711 15,000 336,711 $23.32 13.5% -Mount Pleasant 2,235,676 138,093 22,209 160,302 $30.60 7.2% -Summerville 1,007,027 41,639 2,375 44,014 $26.86 4.4% 223,500 28,000 West Ashley 1,159,784 51,485 4,295 55,780 $24.52 4.8% 15,500TOTAL SUBURBAN 11,879,141 1,077,181 464,992 1,542,173 $26.76 12.98% 365,000 28,000 TOTAL MARKET 15,433,654 1,491,655 502,392 1,994,047 $30.05 12.9% 365,000 304,292 Bridge
10,000
Bridge
research
Source: Bridge Commercial 26 526 17 17 52 17A 78 UPPER NORTH CHARLESTON 13.5% Vacant $23.32 FS MOUNT PLEASANT 7.2% Vacant $30.60 FS DANIEL ISLAND 30.9% Vacant $30.95 FS WEST ASHLEY 4.8% Vacant $24.52 FS LOWER NORTH CHARLESTON 11.8% Vacant $24.17 FS DOWNTOWN 12.7% Vacant $39.43 FS SUMMERVILLE 4.4% Vacant $26.86 FS UNDER CONSTRUCTION PROPOSED CONSTRUCTION Q2 2023 charleston OFFICE MARKET REPORT PG. 2
tracks buildings
SF
uses only internal
within its Charleston office for its market research.
CHARLESTON’S OFFICE MARKET REMAINS HEALTHY & GROWING
Q2 RECAP
• Charleston’s overall office market represents a dynamic market of new construction and recent expansions.
• Leasing activity and deliveries helped vacancy rates stay stable at 12.8% at the end of Q2.
• Mid-size office tenants with new expansions, combined with limited supply for newer space kept rent growth stable.
• New projects delivered to the market included 671 Meeting, The Morris (1080 Morrison Drive), and Morrison Yard (850 Morrison Drive).
• With 40,000 SF of new leases, The Morris is a perfect example of the demand for office users attraction to Charleston’s lifestyle and the opportunity to be a part of a growing market.
NEW CONSTRUCTION SHIFTS TO SUBURBAN MARKETS
• Atlanta based developer, Jamestown, is underway on Navy Yard, the conversion of a former U.S. Navy Base into a 3,500,000 SF mixed-use project with residential, retail and office space.
• Nexton, a master-planned, mixed-use community in Summerville, currently has multiple new office developments under construction.
• Spartina Creek is located at 1081 Johnnie Dodds Boulevard is a 35,000 SF proposed office project in Mount Pleasant.
NOTABLE TRANSACTIONS
NEXTON OFFICE PROJECTS ARE UNDERWAY
BRIDGE-COMMERCIAL.COM
Q2 2023 charleston OFFICE MARKET REPORT PG. 3
ATELIER | 175,000 SF TOTAL 36,000 SF (PHASE I) | Q4 2024 DELIVERY
THE HUB @ NEXTON BUILDING 2 | 20,000 SF Q1 2024 DELIVERY
DAYFIELD PARK | 115,000 SF TOTAL 34,000 SF (PHASE I) | Q4 2024 DELIVERY
BRIGHTON COURT | 14,400 SF Q4 2023 DELIVERY
TENANT PROPERTY SF Charleston County 4340 Corporate Road 40,000 HCA Atlantic Marshside 39,815 USLI Faber Pointe 12,809 Henderson Park Advisors The Morris 11,081 Segra 5900 Core Road 10,600 Conrex Navy Yard 9,431 Weston & Sampson 3955 Faber Place Drive 8,747 RXO Port 26 8,328 MUSCP 1200 Innovation Way 7,244 Keller Williams 501 Wando Park Blvd 6,650 Healthcare Realty The Morrison Yard 6,497
OFFICE ADVISORS
Q2 2023 charleston OFFICE MARKET REPORT www.bridge-commercial.com SIGN UP FOR MARKET REPORTS AT
MARK A. MATTISON, CCIM, SIOR Executive Vice President mark.mattison@bridge-commercial.com
BRIDGE COMMERCIAL 25 Calhoun Street, Suite 220 Charleston, SC 29401 Tel +1 843 535 8600 info@bridge-commercial.com
COLBY FARMER Senior Associate colby.farmer@bridge-commercial.com
Bridge Commercial uses only internal research within its Charleston office for its market data. Bridge Commercial makes no guarantees, representations or warranties of any kind, expressed or implied, including warranties of content, accuracy and reliability. Any interested party should do their own research as to the accuracy of the information. Bridge Commercial excludes warranties arising out of this document and excludes all liability for loss and damages arising out of this document.
PETER FENNELLY, MCR, SIOR, SLCR President peter.fennelly@bridge-commercial.com
INVESTMENT SALES THE HUB @NEXTON BUILDING 2 Summerville 50,000 SF Available 4360 CORPORATE ROAD North Charleston 38,834 SF Available FABER CROSSING North Charleston 10,000 SF Available DAYFIELD PARK @ NEXTON Summerville 34,000 SF Available (Phase I)
MICHAEL KELLY Brokerage Associate michael.kelly@bridge-commercial.com MEREDITH MILLENDER Vice President of Property Management meredith.millender@bridge-commercial.com PROPERTY MANAGEMENT BRIDGE OFFERS PROPERTY MANAGEMENT, ACCOUNTING & PROJECT MANAGEMENT SERVICES NEED PROPERTY MANAGEMENT EXPERTISE? 134 MEETING STREET Downtown 4,500 SF Available COLBY FARMER Associate +1 978 998 9243 colby.farmer@bridge-commercial.com WWW.BRIDGE-COMMERCIAL.COM MARK MATTISON SIOR, CCIM Executive Vice President +1 843 437 1545 mark.mattison@bridge-commercial.com OFFICE SPACE FOR LEASE LOCATED IN HIGHLY SOUGHT-AFTER EXECUTIVE PARK AT FABER PLACE $28.00 RSF FULL SERVICE 2,032 RSF - 34,816 RSF CLASS A OFFICE 4105 FABER PLACE DRIVE, NORTH CHARLESTON, SC 29405 OFFICE SPACE FOR LEASE FaberPointe Developed, Leased and Managed by Holder Properties MICHAEL KELLY Associate +1 843 568 2970 michael.kelly@bridge-commercial.com FABER POINTE North Charleston 12,579 SF Available ATELIER Summerville 36,000 SF Available (Phase I) OAKS AT CENTRE POINTE North Charleston 6,960 SF Available DANIEL PELLEGRINO Senior Vice President daniel.pellegrino@bridge-commercial.com
HAGOOD S. MORRISON, II, SIOR Senior Vice President hs.morrison@bridge-commercial.com
OFFICE OPPORTUNITIES
