The Peninsula Submarket Faces a Depletion of Class A Office Space Motivating Tenants to Lock in Current Long-Term Pricing
Charleston, SC, Jan. 11, 2016— CBRE Research has released the latest data on the office commercial real estate sector in the Charleston market. The fourth quarter of 2015 represented a slight pause in growth but it does not affect Charleston’s status as a market in an aggressive expansion mode. In 2015, 350,000 sq. ft. was delivered to the marketplace, but vacancy only declined slightly by 30 basis points due to an annual absorption of over 400,000 sq. ft. Space in the Peninsula submarket is sorely needed.
Asking rates increased 6% from this time last year, continuing to make them among the highest in the Southeast. Further, as rates for existing properties are nearing those required to justify new construction, opportunities exist for tenants to pre-lease space in newly proposed developments.
Office
- CertusBank’s departure delivers needed vacancy to Peninsula submarket
- Speculation in suburban market adds more availability to the market
- Charleston is still the most expensive office market in the Southeast, with the exception of Miami
