2 weeks Ago
Commercial Real Estate Research & Forecast Report (Q1 2025 Charleston Office) Market Highlights The Charleston market saw several quarters of increasing demand culminate in its highest absorption in a year at 90,244 square feet. Downtown and Lower North Charleston Class A and B spaces captured the bulk of new absorption, emphasizing the attractiveness of the market’s core as tenants seek to maximize amenities over commute times in a push towards return-to-office. Key Takeaways • Move-ins and new leases are reducing an excess of Class A space • Sublease availabilities remain abundant, suppressing rents • Renovated and highly-"amenitized" buildings experiencing higher interest levels Summary Buildings offering attached parking and renovated spaces performed best in a competitive environment in which rents have declined slightly from an aggressive peak, but vacancy remains relatively elevated.
Suburban submarkets, such as Daniel Island, in which 37 percent of space remains vacant, still face significant challenges, but several notable leases signed in the Faber Place office park provide a boost. Abundant sublease availability is still suppressing rents, but sublease deal activity is on the rise..
