The Charleston retail market experienced a decrease in activity during the first quarter of 2024. Factors such as increasing interest rates and economic uncertainty contributed to a decline in sales volume, while consumer spending remained relatively stagnant, resulting in slower retail leasing activity. Despite this slowdown, the market maintained stability due to a lack of new retail supply, resulting in a low vacancy rate of 3.0%. The few new construction projects that did occur primarily focused on neighborhood centers or mixed-use developments in suburban areas with growing populations, many of which were preleased or built to suit. Charleston’s market retains its uniqueness, benefiting from luxury tourism and sustained population growth.
