Q2 MARKET SNAPSHOT Inventory
15,635,554 SF Vacancy 10.0% Asking Rents
YTD Deliveries $30.54 SF 93,575 SF 10,000 SF
Q2
HIGHLIGHTS & TRENDS
• CHARLESTON’S OFFICE MARKET CONTINUES TO MAKE A STRONG COME-BACK WITH DECREASING VACANCY RATES AND STRONG RENTAL RATES.
• AS DEMAND FOR NEW PRODUCT CONTINUES TO GROW, DEVELOPERS NEED TO BE POSITIONED TO DELIVER MORE SPACE.
• THE PASSING OF THE ONE BIG BEAUTIFUL BILL BRINGS OPPORTUNITIES FOR DEVELOPMENT, INVESTMENT AND ECONOMIC DEVELOPMENT.
• NEW CONSTRUCTION PROJECTS ARE ON THE HORIZON IN DOWNTOWN CHARLESTON.
• THE INVESTMENT SALES MARKET REBOUNDS WITH THE SALE OF 200 MEETING STREET.
CHARLESTON’S OFFICE MARKET IS BACK
NEW CONSTRUCTION PROJECTS ON THE HORIZON Q2 2025 RECAP
• Charleston’s office market boasts decreasing vacancy and increasing rental rates as the back-to-the-office trend continues in Q2.
• There is limited vacancy in Downtown at the end of Q2 with the majority of new office product being leased.
• Many prospective office tenants are looking in the Upper Peninsula submarket of Downtown for space.
• Law firms and technology companies are actively looking for upgraded space that provides an environment conducive to engaging employees and clients.
• Multiple new construction projects are in the pipeline throughout the Charleston region in effort to meet the growing demand for space.
• Nexton continues to attract office tenants by providing multiple office solutions in a work-live-play-stay environment. Opportunites are available with The Hub, Atelier, and Dayfield Park.
RENTAL RATES ON THE RISE
• Charleston’s office market is seeing increases in rental rates throughout the region.
• Class A and newer product reflects “top of the market” rental rates as follows:
- Downtown: $55 - $58 PSF Full Service
- Mount Pleasant: $48 - $50 PSF Full Service
- Summerville: $45 - $48 PSF Full Service
- Daniel Island: $35 - $38 PSF Full Service
- North Charleston: $35 - $38 PSF Full Service
INVESTMENT SALES GAIN MOMENTUM
• 200 Meeting Street recently traded for $45,750,000. The new owners are in the design and permitting phase to retrofit the building for new tenants.
• The sale and repositioning of 200 Meeting Street will set the stage for the repositioning of other buildings.
• Office building investment sales are gaining momentum with new capital looking at Charleston along with the encouragement of rising rents.
• Buyers are looking outside traditional centers to finance the next round of opportunities.
• Owners and users are active in purchasing their building to control the long-term real estate costs for their businesses.
Construction is underway and Phase I will provide approximately 100,000 SF of office space.
Charleston Tech Center.
Up to 30,000 SF for sale or lease in Summerville’s
The final phase of Courier Square has been approved and will provide a mix of uses including office.
