Charleston is prime for population spike, eventually increasing demand
- Negative effects of the pandemic are starting to be evident in the Charleston office market - no new offices were delivered; however, the office market posted a negative overall absorption of 25,280 square feet.
- Overall Charleston office rental rates are lower this quarter, except in Class A central business district office space. The drop in rental rates may be partly a result of owners lowering rates to lease space quickly to accommodate for tenants downsizing or moving due to the Coronavirus.
- Following the pandemic, cities with less population density, such as Charleston, are becoming more attractive.
Charleston draws new residents
Charleston has received many accolades over the years regarding its quality of life and dynamic business environment, making it a favorite relocation choice for people from all over the nation. Residents moving from other states made South Carolina the 6th fastest growing state last year. In addition, Charleston’s regional population is growing three times faster than the United States average.
There are several reasons the region continues to be popular. Charleston is home to multiple public and private universities, as well as technical college systems, collectively offering training and education programs that support the growing regional labor force. Also, desirable housing and a strong job market are a large draw for new Charleston residents. Charleston’s livability factor is high due to world-renowned dining, a mild climate with beautiful beaches and a multitude of walkable historical landmarks and sites to visit. Charleston has drawn tourists to the area for several years; however, following the pandemic, cities with less population density are becoming even more attractive. Many people from larger northeastern U.S. cities are relocating to smaller southern cities such as Charleston. According to Zillow, the average time for a Charleston home to be on the housing market is only 100 days, meaning houses for sale are purchased often within a little over three months of being listed, showing how high the demand for housing is. Due to the draw of new residents and a need for space afforded within tertiary cities such as Charleston, a future population boom will likely increase the need for office space and absorb availabilities created as a result of the pandemic.
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