Office Market

The Charleston market is slowing down but not suffering. The market vacancy rate is at 7.5%, a 1.0% improvement from a year ago. However, we continue to see some disconnect at the submarket level. Downtown is nearing its completion of over 260,000 SF Class-A offi ce space. The larger lease deals this quarter have been in properties that are newer and near-completion in North Charleston and Downtown. Daniel Island submarket still holds the highest vacancy rate at 19.1% and yet the Average Asking Rent has grown to $35.14/SF, a 19% increase from a year ago. Sales dropped significantly with only $187 million closed in 2022. The rising interest rate, remote work, and economic uncertainty continue to play important roles in the future of office.