Sublease space and office pipeline offer tenants a unique upgrade opportunity
- Sublease and anticipated office deliveries in 2021 afford tenants the opportunity to upgrade from their current office space. Furthermore, out-of-market businesses can relocate headquarters or start a new business in Charleston.
- Rental rates will be likely be lowered throughout the market until the Class A office sublease space is absorbed.
Commercial development follows residential boom
Charleston saw an uptick in residential sales beginning last year and continuing into 2020 as residents desired more space to work remotely and stay further away from communal environments. The need for distance has led to an uptick in single-family home sales throughout Charleston. Year-to-date home sales have increased over the home sales through November of 2019 by 12.9% in Berkeley County, 14.8% in Charleston County and 19.6% in Dorchester County. In addition, homes throughout the Charleston region are sold within two months or less from the time they are listed, proving the residential market is maintaining momentum. New homes were built in 2019 anticipating an increase in population, and then in 2020 growth was fueled by the pandemic and need for personal space therefore boosting overall Charleston residential sales. Residential growth bodes well for commercial real estate because it allows out-of-town business owners new home choices throughout the region. Commercial real estate tends to follow residential development trends by providing offices to be filled by businesses new to the region. The Charleston office market is proving this trend to be true.
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