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.
Services
| User/Occupier | Owner/Investor | Development |
|---|---|---|
| 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 | ||
Area Overview
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.
Markets
South Carolina’s unemployment rate is at 3.9%, a 17-year low, while the Greater Charleston region (which includes Berkeley, Charleston and Dorchester counties) registered 3.7% in 2017. The tightening labor pool is a result of strong industrial growth within the region, spurring jobs across diverse sectors that include technology, auto manufacturing, aerospace and tourism.
The Port of Charleston is expanding with the Hugh K. Leatherman, Sr. Terminal currently under construction. The terminal is due for completion in 2020 and will nearly double capacity when combined with the existing terminals. The Port of Charleston processed a record 1.21 million TEUs in fiscal-year 2017 and continues to fuel a growing local job base.
OFFICE
The state of the region’s office market is best described in one word: change. While challenging, change is bringing exciting opportunities to this burgeoning market. Construction of multiple large-scale, mixed-use developments began in 2017 – several of which will come to market in 2018, adding considerably to the office inventory. Vacancy rates are expected to fluctuate in 2018 as absorption takes hold.
These new arrivals offer office tenants a dynamic, vibrant and convenient working environment well-suited to recruit qualified employees. To remain competitive, existing office property owners should consider investing in and enhancing their properties as the competition improves.
INDUSTRIAL
The Greater Charleston region’s industrial market grew in 2017 to include Orangeburg County – in part a consequence of both Volvo’s and Mercedes-Benz Vans’ plants coming online in 2018. Combined, these facilities will total 5 msf and create more than 5,000 new jobs. This activity has initiated a surge of automotive suppliers looking to enter the market, which in turn is driving developers and investors to construct speculative projects in an array of sizes and configurations.
The result will be strong economics and demand in 2018 and for the foreseeable future. Vacancy rates have inched upward as new large products are delivered, slightly outpacing absorption; however, asking rents are stable and increasing quickly in the under-50,000-sf size range. The market should see the delivery of an additional 2 msf-plus of class A distribution space and some repositioning of older products to support the growing manufacturing sector.
RETAIL
Retail has grown quickly throughout the Charleston region as new shopping center developments follow the multi-family and single-family housing boom fueled by the transformation of the region’s economy from service-based to science-and-technology-based. In addition, tourism continues to flourish.
Many new and exciting retail projects are on the horizon for 2018. Upcoming projects are spread throughout the region and include grocers and large mixed-use developments.
INVESTMENT
While long attractive to local investors, Charleston is now considered one of the top 25 best-performing large cities in the U.S., according to the Milken Institute. Institutional stakeholders have taken notice as the market’s growing employment base, rising wages and diversified economy have fostered confidence and lowered risk, driving investment to the area and compressing capitalization rates. This trend will likely continue through 2018 and beyond.