The “mid-year viewpoint” from a New York-based commercial real estate researcher finds surges in the multifamily and industrial markets in greater Charleston, while the office outlook lagged a bit.
Integra Realty Resources recently released the report, which “details commercial real estate trends data, and stats both nationally and local.” Bud Wright, MAI, is senior managing director of the Charleston office.
According to the mid-year findings, Charleston’s apartment and related market are “experiencing the most development in 15 years, mostly around the Boeing facility and Mount Pleasant.” Vacancy rates rose slightly through the first half of the year, but “the lack of completed units in the first half of 2015 has held the average vacancy rate between 5 and 6 percent.”
At the same time, the Charleston industrial market has grown significantly. “The lack of available product on the market hinders expansions of existing companies and leaves few options for new companies,” according to Integra Realty Resources. As a result, new construction activity has shot up for the first time since 2008. The researcher says most of the vacant space is in “older, less functional buildings.”
One area that’s seen “slow growth” over the past two years is the office market. With no office developments completed last year, vacancy rates have declined to 6.2 percent for “central business district class A (top-end) buildings and 9 percent for suburban class A buildings,” Integra Realty notes. Lease rates have risen slightly, the company says.
Reach Jim Parker at 843-937-5542 or email@example.com.