Avison Young in Charleston
For more than 20 years, the principals and associates of the Charleston, South Carolina office of Avison Young have been providing a full range of commercial real estate services to clients throughout the Tri-County region. The Charleston office offers a full suite of services including brokerage, property management, project management, capital markets and development services for business, industrial and investment organizations of all kinds. Each Charleston real estate agent specializes in specific sectors, including healthcare, industrial, multifamily, office and retail while working in teams to create the highest degree of value-added service for our clients.
Guiding everything we do is an unwavering commitment to excellence in client service. Through a dedicated, principal-led business resources team, we provide tools, technology and expertise to support our clients, however complex their challenges. Our approach is holistic and consistent. It starts with an understanding of your business priorities, not with real estate transactions. For our clients, this means we produce customized, cost-effective solutions with speed, creativity and confidence.
With over 75 years of combined experience, the Charleston property management team gives owners the confidence their investment will be properly managed. In addition to maintaining positive tenant relationships, our team delivers innovative real estate management solutions, finds reputable and responsive vendors at competitive prices, and provides the resources to keep track of clients’ financial information. Our experience and expertise span commercial, retail and industrial property types, and include all of the resources and expertise of Avison Young’s global organization.
|Transaction Management||Landlord Representation||Real Estate Development|
|Tenant Representation||Capital Markets||Management and Advisory|
|Consulting and Advisory||Investment Sales||Design Management|
|Project Management||Property Management||Construction Management|
|Enterprise Solutions||Investment and Asset Management|
|Project Management - Investor|
Charleston is known for its rich history, well-preserved architecture, distinguished restaurants and mannerly people. The Tri-County Charleston metropolitan area includes Berkeley, Charleston and Dorchester counties. The Tri-County area has a strong broad-based economy with market drivers including education, entertainment, healthcare, manufacturing, military defense, port-related trade, technology and tourism. Orangeburg County has become an extension of the Tri-County region and is home to aerospace and auto manufacturing. The region has experienced unprecedented growth and economic diversification, with both multinational corporations and fast-growing startups taking advantage of our globally competitive business environment and rapidly expanding, diverse population.
The area’s diverse economic mix is a combination of one of the busiest container ports along the Southeast and Gulf coast, known as South Carolina Ports; a $3+ billion tourism industry; one of the Southeast’s most impressive medical hubs; a well-established base of national and international manufacturers, and a large military presence.
Companies continue to locate here to capitalize on the high-quality workforce, low taxes and quality of life. Arts, recreational and cultural opportunities are abundant, including museums, music, dance and theater, as well as water sports, golf, hunting, fishing, horseback riding and other activities. Abundant restaurant offerings have made Charleston one of the culinary capitals of the world. The area is consistently recognized as one of the top travel and tourist destinations on the globe.
Biotechnology inventions from four universities and the Medical University of South Carolina create an opportunity for growth in this sector. The digital revolution is also alive and well with multiple public and private companies operating in the space sector. This vibrant and energetic dimension of the community attracts young and exciting talent to the region. The Charleston region is positioned to continue its growth throughout the 21st Century.
Charleston’s regional economy posted strong job growth through 2016, up 20,700 jobs, a gain of 7% during the previous 24 months. There are no signs of this growth abating – the Charleston Metro Chamber of Commerce expects an additional 20,000 jobs to be created in the next 24 months. These gains are occurring across several industry sectors, including auto manufacturing, aerospace, technology, tourism and construction. The community will continue to enjoy a diverse and resilient job base through 2017.
As the region’s employment flourished, the office market continued to grow in 2016. Strong absorption trends were recorded with the total market absorbing approximately 300,000 square feet through the first three quarters, driving vacancy down to 5.4%. This pace is expected to continue in 2017.
The developer of Courier Square plans to deliver 55,000 sf in downtown Charleston in 2017, while local developer Grambling Brothers will be delivering an additional 42,000 sf in the Mount Pleasant area. Of the estimated 390,000 sf of office product coming to the market in 2017, approximately 246,000 sf, or 63%, was preleased at the start of the year.
The Charleston metropolitan area’s residential market is propelling retail growth, a direct result of the healthy employment sector. More than 78,000 homes are planned for the region over the next few years. Due to a lack of space in high-profile locations, asking rates continued to rise while vacancy hovered at 4.4%. Additional development, such as the WestEdge Discovery District, planned for delivery in 2017 and 2018, is expected to give retailers more opportunities and options for growth.
The industrial market in 2016 was vibrant and growing. As the sector has recovered, demand for space has exceeded inventories, triggering new construction, rental rate increases and few, if any, concessions, while pushing sale pricing beyond replacement costs. These market dynamics are expected to continue through 2017 and beyond, due mostly to the massive growth plans for the Mercedes-Benz Vans (a division of Daimler) and Volvo automotive plants, and the continued growth of Boeing, Bosch and the Port of Charleston.
Charleston continues to be on the radar of institutional and private investors. Demand for investment-grade properties, especially in prime locations with quality tenants, heavily outweighed supply in 2016, creating an advantageous market for sellers. Properties are receiving multiple offers above the asking price with favorable closing conditions for the seller. As in 2015, the market recorded mostly steady and compressing capitalization rates for class A properties. Interest rates are expected to increase in 2017, which will help stabilize cap rates.