Vacancies in Charleston have surged from one of the tightest markets nationally in 2022 to well above the national average due to increased speculative supply and cooled leasing activity, particularly in the 100,000 SF and above market. Availability rates for smaller buildings remain below 5%. Rent growth has slowed from record highs of over 12% annually in 2022 to a still-impressive 6.5% year-over-year. The Hugh K. Leatherman Terminal, though relatively new, still has 4/5ths capacity to expand. The Port of Charleston is planning to purchase another port adjacent to the North Charleston Terminal, showing ample capacity for growth in port and warehouse real estate in the region.
