CHARLESTON OFFICE MARKET REPORT
Q3 MARKET SNAPSHOT
15,658,689 SF
9.5% Asking Rents
YTD Deliveries $30.44 SF 75,000 SF 48,575 SF
Q3 HIGHLIGHTS & TRENDS
• CHARLESTON’S OFFICE MARKET CONTINUES TO OUTPERFORM COMPARABLE SOUTHEASTERN CITIES, MAINTAINING STRONG FUNDAMENTALS AND CONSISTENT LEASING ACTIVITY.
• LEASING ACTIVITY INCREASES AND THE ONGOING “FLIGHT TO QUALITY” REMAINS A DEFINING TREND, WITH TENANTS GRAVITATING TOWARD NEWER, AMENITY-RICH CLASS A REMAINING PRODUCT.
• CAPITAL MARKETS DEAL VOLUME HAS PICKED UP THROUGHOUT THIS YEAR AND IS EXPECTED TO CONTINUE.
• OVERALL ECONOMIC AND DEMOGRAPHIC TRENDS POINT TOWARDS AN INCREASING OFFICE DEMAND DESPITE SHORTTERM NATIONAL HEADWINDS.
• CHARLESTON REMAINS AMONG THE FASTEST-GROWING MIDSIZE CITIES IN THE U.S.
• POPULATION AND WORKFORCE GROWTH, CONTINUE TO DRIVE OFFICE DEMAND IN FINANCIAL AND PROFESSIONAL SERVICES SECTORS.
CHARLESTON’S OFFICE MARKET HEATS UP AS DEMAND OUTPACES SUPPLY
Q3 2025 RECAP
• Leasing activity has gained momentum across the region, with both downtown and suburban submarkets seeing increased tenant demand, driven by new deliveries, adaptive reuse projects, and continued interest from growing industries.
• Positive absorption has persisted through Q3, reflecting steady tenant expansion and limited moveouts.
• Overall vacancy is down to 9.5%, well below national and regional averages.
• Most submarkets are now back to single digit vacancy: Downtown (6.7%), Mount Pleasant (5.6%), Summerville (5.1%), Upper North Charleston (9.8%), and West Ashley (9.4%).
• Class A properties and new construction projects continue to command $50–$60/SF Full Service Rents, highlighting demand for premier space.
• Newer developments on the Upper Peninsula, including Morrison Yard (135,000 SF) and The Morris (106,000 SF), are fully leased.
• Renovated, well-located Class B buildings are seeing renewed activity as tenants look for cost-sensitive alternatives.
CONSTRUCTION & DEVELOPMENT SURGES AHEAD
• Suburban growth continues to be anchored by Nexton. Ongoing projects include The HUB Building 2, scheduled for completion in Q4 2025, and Dayfield Park Phase 2, expected in Q2 2026.
• Atelier Phase 1 is now complete, with Phase 2 underway, signaling continued demand for high-end suburban product.
• Adaptive reuse remains a development theme; projects such as The Navy Yard and 200 Meeting Street, exemplify the trend toward repositioning unique, well-located properties.
• Developers are responding to sustained demand. Approximately 300,000 SF of new office space is planned or proposed on the Upper Peninsula (including Magnolia, Flagship II, and Courier Square).
INVESTMENT SALES ARE ON THE RISE
• Office investment volume has rebounded with approximately $346 million traded over the past 12 months, up 50% year over year.
• While most transactions remain under $20 million, regional capital are re-entering for value-add plays.
• Fourthline Capital’s acquisition of 200 Meeting Street for $45.75 million, or $300 per square foot, demonstrates investor confidence in Charleston’s office market.
LEASING ACTIVITY PICKS UP THROUGHOUT THE REGION
700 NEXTON SQUARE
Regus leases approximately 25,000 SF of space at 700 Nexton Square in Summerville.
880 ISLAND PARK DRIVE
Jones Trading leases 11,419 SF at 880 Island Park Drive on Daniel Island.
Photo courtesy of Loopnet
Photo courtesy of Regus.com
ASHLEY OVERLOOK
Southeastern College leased 36,417 SF of space at Ashley Overlook in North Charleston.
Photo courtesy of CBRE
174 MEETING STREET
GSA leases 15,039 SF at 174 Meeting Street in Downtown Charleston.
