MARKETBEAT

Office Snapshot Q1 2016

Charleston, SC

Market Overview

CHARLESTON OFFICE

The regions overall vacancy increased from 6.9% in Q1 2015 to

Economic Indicators
12-Month
Forecast

7.8% in Q1 2016. Overall rental rates fell from $21.16 per square

Q1 15

Q1 16

Charleston Employment

325k

332k

were $25.41 psf. The overall net absorption dropped from 253,000

Charleston Unemployment

5.4%

5.3%

square feet (sf) to 45,000 sf. Total square feet under construction

U.S. Unemployment

5.6%

4.9%

was 334,000 sf consisting of 130,000 sf for build-to-suit space

foot (psf) to $19.88 psf. The overall asking average class A rates

compared to 118,000 sf in Q1 2015. The newly renovated Cigar

Factory reported the most leasing activity in Q1 2016 with four

Market Indicators (Overall, All Classes)

Q1 15

Q1 16

Overall Vacancy

6.9%

7.8%

Net Absorption

253k

45k

Under Construction

118k

334k

$21.16

$19.88

Average Asking Rent

12-Month
Forecast

leases totaling 81,517 sf. The largest office building sale was 2575
Elms Center Rd at $257 psf.
Key Lease Transactions Q1 16
PROPERTY

Overall Vacancy
12%

SF

CLASS

701 East Bay St 5th Fl

31,000

Clemson University School of

Architecture

701 East Bay St 4th Fl

28,000

Undisclosed

701 East Bay St

1st

Fl

11,338

Undisclosed

701 East Bay St 3rd Fl

11,179

Undisclosed

5900 Core Ave 3rd Fl

10,600

Undisclosed

Key Sales Transactions Q1 16

10%

PROPERTY

7%

TENANT

234 Seven Farms Dr

Historical Average = 8.0%

5%

2%
2013

2014

2015

2016

Economy and Market Overview

Charlestons economy continues to grow with an average of 43
people moving to the Lowcountry per day. Solid job growth
coupled with more millennials moving here kept the workforce
growing to fuel the rising economy. Investors remained extremely
interesting in the region even with low cap rates on sales. Traffic
remains one of the top concerns as the local elected leaders
continue to work to find solutions.

Cushman & Wakefield | Thalhimer

1 Central Island Plaza
115 Central Island Street, Suite 175
Charleston, SC 29492
www.thalhimer.com

For more information, contact:

Brad McGetrick, Director of
Brokerage Services
Tel: +1 804 697 3558
brad.mcgetrick@thalhimer.com

SF
40,000

2265 Clements Ferry Rd

37,200

2575 Elms Center Rd

24,000

BUYER

PRICE / $PSF

Messervy LLC

$850,000 / $21

2265 Clements Ferry Rd

Sui 212
Healthcare Trust of
America

$335,000 / $9
$6,170,000 / $257

Outlook
Consensus job growth forecasts for the Charleston Metropolitan
Area bode well for the office market. As companies both new and old
increase hiring and the trend toward space-use efficiency occurs in
all submarkets, look for vacancy to continue to tighten with rent
growth approaching historical heights.
Tenant appetite for new class A development is strong and will
continue to dominate leasing activity. In addition, the burgeoning
number of companies in the health-care, technology, education and
leisure and tourism sectors will continue to fuel office leasing activity
not only for new development, but also for redevelopment ventures.
Tenants are showing no resistance to rising asking rents as the area
outlook remains sanguine.

Cushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way people work, shop, and live. The
firms 43,000 employees in more than 60 countries provide deep local and global insights that create significant value for occupiers and
investors around the world. Cushman & Wakefield is among the largest commercial real estate services firms in the world with revenues of $5
billion across core services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global occupier
services, investment management (branded DTZ Investors), tenant representation and valuations & advisory. To learn more, visit
www.cushmanwakefield.com or follow @Cushwake on Twitter.
Copyright 2016 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources
considered to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its
accuracy. Alliance firms are independently owned and operated.