CHARLESTON OFFICE MARKET REPORT
Q1 MARKET SNAPSHOT Inventory
15,635,554 SF Vacancy 11.1% Asking Rents
$30.14 SF 93,575 SF 10,000 SF
YTD Deliveries
Q1 HIGHLIGHTS & TRENDS
• VACANCY RATES ARE NEARING SINGLE DIGITS AND RENTAL RATES CONTINUE TO INCREASE.
• NET ABSORPTION IS POSITIVE FOR THE FIRST QUARTER.
• WITH A LIMITED DEVELOPMENT PIPELINE, CHARLESTON’S OFFICE MARKET NEEDS NEW BUILDINGS TO CONTINUE TO GROW.
• DESPITE CHARLESTON’S OFFICE MARKET STRENGTH, THE MARKET REMAINS AFFECTED BY THE BROADER, NATIONAL OFFICE MARKET SKEPTICISM AND CAPITAL CONSTRAINTS, WHICH IS PENALIZING VALUES.
• LEASING ACTIVITY IS BUILDING WITH MANY TENANTS RELOCATING WITHIN CHARLESTON.
TIME TO BUILD NEW OFFICE BUILDINGS
Q1 2025 RECAP
• Charleston’s office market showed signs of continued growth in the first quarter with vacancy declining throughout the majority of the submarkets.
• Base rental rates are increasing due to limited supply and competition throughout the region; giving owners and developers the opportunity to increase rents while controlling the costs of tenant improvements.
• Operating expenses continue to rise due to inflation and are influencing higher rents.
• Scarcity of new construction may challenge tenants seeking large blocks of modern space.
FACTORS CONTRIBUTING TO OFFICE MARKET GROWTH
• Back to the Office - The efforts of local, state, and federal governments, along with the private sector, to limit work-from-home and bring people back into the office has had a positive effect on Charleston’s office market.
• Economic Growth - Industries including defense contractors, home building, financial services and corporate relocations are increasing their presence in the region due to Charleston’s desirable quality of life, diverse work and business opportunities, and vibrant tourism and destination travel.
• Infrastructure Improvements - Charleston is committed to further improving its infrastructure with many projects recently completed or in process.
• Population Growth - More people are moving to Charleston. South Carolina is among the top states in the country with the highest inbound net migration.
Q1 NOTABLE LEASE TRANSACTIONS
• Charleston’s office market saw continued leasing activity in the first quarter with many tenants relocating within the Charleston region. Some of the notable transactions include:
TENANT SF SUBMARKET
Free Fly Apparel
12,009 SF Upper Peninsula
DRV 10,495 SF Lower N. Charleston
Garden & Gun Magazine
6,500 SF Downtown
Olympus Development Company 6,497 SF Upper Peninsula
TEK Systems
Mingledorff & Patterson
5,927 SF Daniel Island
3,322 SF Daniel Island
Blue Acorn 7,065 SF Downtown
CDM Smith
3,629 SF Lower N. Charleston
Insurance of America, Inc. 2,387 SF Lower N. Charleston
Logicsource, Inc.
3,211 SF Downtown
DOWNTOWN OFFICE TENANTS RELOCATE
Charleston-based apparel company, relocated to 145 Williman Street and will be occupying approximately 12,009 SF.
Real estate development company subleasing 6,497 SF of space at 850 Morrison Drive.
The information technology company relocated to 7,065 SF at 711 Meeting Street.
of
LOGICSOURCE, INC.
The technology provider relocated to 3,211 SF at 151 Meeting Street.
courtesy of Loopnet
FREE FLY APPAREL
OYLMPUS DEVELOPMENT COMPANY
Photo
BLUE ACORN
Photo courtesy
Loopnet
Photo courtesy of Loopnet
Photo courtesy of JLL
