Significant growth in all sectors marked the third quarter for the Charleston area’s office and industrial commercial real estate market, according to the Los Angeles-based nationwide real estate services and investment firm CBRE Research.
According to data from the three-month period, Charleston’s industrial vacancy rate dropped to 6.3 percent, with development influencing occupancy in certain submarket geographical areas, such as North Charleston/Ladson and the Interstate 26 North corridor.
The metro area has over 4 million square feet under construction for industrial purposes. Of that total, more than 570,000 square feet is speculative, indicating a high confidence factor.
In the office space sector, similar rapid growth is creating a low vacancy rate as well as speculative development. Multifamily and hospitality markets are competing for space in suburban areas as the Peninsula region saw steadily decreasing vacancies. In particular, co-work-style space is gaining in popularity for tech companies experiencing increased growth and expanded facility needs.
“Asking rates,” or price per square foot, remain at a stable rate both for office and industrial endeavors. Market asking rates increased to $25.24 per square foot for office space in general, bumping up to $36.41 per square foot for Class A space on the Peninsula.
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