The Charleston Market saw a slight increase in average office and industrial rent per square foot (SF) this past quarter. The projections for 2020 will continue this trend as well, increasing slightly each quarter. Vacancy rate is up but is projected to decrease and level out throughout the year. 135,380 SF of office space was leased in Q4 from the total market size of 30.8M SF. Industrial leased 585,228 SF from its 70.6M SF market size. Some key economic drivers and headwinds affecting the Charleston market included:
- Booming tech sector ranked #9 place in the USA to launch a startup
- Quality of life
- Diversified economy
- SC Port Authority saw 5% growth in volumes
- Global political instability
- Trade Wars and uncertain tariff situation negatively impacting demand for warehouse space
- Labor disputed and rise in base pay and minimum wage to force some regional jobs to relocate to cheaper labor markets Boeing
- Suspending production of 737 Max will reduce demand for space from suppliers
- Base Realignment and Closure
- Cooling global economy
- Inland ports in upstate moving demand away from the coast of logistic services and space
- Increased demand on infrastructure, water, power, and increased traffic
- Lack of affordable buildable sites
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Commercial Real Estate Broker in Charleston, SC
Mike Ferrer, CCIM, MCR has over 18 years of commercial real estate Brokerage and Development experience. With a focus on warehouses, manufacturing, office buildings, vacant land, and Investment Sales. He opened his own brokerage in 2015, and has completed over $250,000,000 in transactions throughout the Lowcountry.
Mike is the past president of the Commercial MLS for the state of South Carolina and has served on many other civic and philanthropic boards. Mike has a plethora of commercial real estate knowledge and established ties to the local community both statewide and stretching across the entire southeast.
Statistics from Costar.com. The information contained herein was obtained from sources believed reliable, however, Ferrer Commercial Real Estate Advisors, LLC makes no guarantees, warranties, or representations as to the completeness or accuracy thereof.