Colliers International in South Carolina has released a snapshot of its third quarter preliminary data for the office, industrial and retail markets in Charleston.
Office market
Charleston has a positive business climate, ripe for continued economic expansion. The office market absorbed 216,319 square feet, due to a high suburban absorption, and 199,832 square feet of new office buildings were delivered to the market this quarter.
Market statistics
Change from Q2 2018
• Market inventory: 13,129,152 SF --
• Quarterly absorption: 216,393 SF --
• Market vacancy rate: 12.05% Lower by 32 basis points
• Average weighted rental rate: $24.13 Higher by 1.60%
Charleston CBD statistics
Change from Q2 2018
• Quarterly absorption: -5,413 SF --
• Vacancy rate: 7.06% Higher by 16 basis points
• Average weighted rental rate: $32.74 Lower by 3.42%
Charleston suburban statistics
Change from Q2 2018
• Quarterly absorption: 221,806 SF --
• Vacancy rate: 13.36% Lower by 48 basis points
• Average weighted rental rate: $22.80 Higher by 2.61%
Industrial market
New regulations regarding trucking Electronic Logging Devices (ELD) will make secondary markets desirable for locating distribution and manufacturing centers. Within the Charleston industrial market, vacancy is lower this quarter than it was in the second quarter. Rental rates are on the rise, as is the demand for industrial space.
Market statistics
Change from Q2 2018
• Market inventory: 51,432,261 SF --
• Quarterly absorption: 923,455 SF --
• Market vacancy rate: 8.02% Lower by 122 basis points
• Average weighted rental rate: $5.34 Higher by 5.12%
Charleston flex/R&D statistics
Change from Q2 2018
• Quarterly absorption: 323,021 SF --
• Vacancy rate: 7.07% Lower by 205 basis points
• Average weighted rental rate: $9.59 Higher by 6.20%
Charleston manufacturing statistics
Change from Q2 2018
• Quarterly absorption: 77,900 SF --
• Vacancy rate: 6.87% Lower by 82 basis points
• Average weighted rental rate: $3.29 Lower by 9.62%
Charleston warehouse statistics
Change from Q2 2018
• Quarterly absorption: 522,534 SF --
• Vacancy rate: 8.42% Lower by 123 basis points
• Average weighted rental rate: $5.45 Higher by 5.62%
Retail market
Vacancy is low and rental rates are on a gradual incline. There are no new retail buildings added to the market this quarter and the activity has remained steady with positive absorption.
Market statistics
Change from Q2 2018
• Market inventory: 14,324,036 SF --
• Quarterly absorption: 52,408 SF --
• Market vacancy rate: 5.38% Lower by 36 basis points
• Average weighted rental rate: $20.43 Higher by 2.71%
Charleston core statistics
Change from Q2 2018
• Quarterly absorption: 7,335 SF --
• Vacancy rate: 3.98% Lower by 9 basis points
• Average weighted rental rate: $20.74 Higher by 4.22%
Charleston non-core statistics
Change from Q2 2018
• Quarterly absorption: 45,073 SF --
• Vacancy rate: 6.94% Lower by 67 basis points
• Average weighted rental rate: $20.27 Higher by 1.96%
Full market reports will be provided in the coming weeks with extensive, final data and more analysis. To receive these reports automatically via email, sign up on colliers.com.
About Colliers International
Colliers International | South Carolina has over 140 staff members, including 60 real estate professionals, covering the entire state with locations in Charleston, Columbia, Greenville and Spartanburg. Total brokerage volume exceeded $750 million for 2017, involving over 900 sales and leasing transactions. Colliers International is the largest manager of commercial property in South Carolina and is an Accredited Management Organization (AMO) through the Institute of Real Estate Management (IREM), with a portfolio at year-end 2017 of approximately 14 million square feet of office, industrial, retail and healthcare properties. Colliers International’s staff holds 46 professional designations, the most of any firm in South Carolina. Colliers | South Carolina’s affiliate, LCK, provides project and construction management services for new facilities and renovations across South Carolina.
Colliers International Group Inc. (NASDAQ: CIGI) (TSX: CIGI) is a top tier global real estate services and investment management company operating in 69 countries with a workforce of more than 13,000 professionals. Colliers is the fastest-growing publicly listed global real estate services and investment management company, with 2017 corporate revenues of $2.3 billion ($2.7 billion including affiliates). With an enterprising culture and significant employee ownership and control, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide, and through its investment management services platform, has more than $20 billion of assets under management from the world’s most respected institutional real estate investors.
Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice to accelerate the success of its clients. Colliers has been ranked among the top 100 global outsourcing firms by the International Association of Outsourcing Professionals for 13 consecutive years, more than any other real estate services firm. Colliers is ranked the number one property manager in the world by Commercial Property Executive for two years in a row.
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