Almost every major retail CRE category in Charleston, South Carolina has shown improvement, at least according to the latest report from Colliers.
Most notably, vacancy dropped to "rock bottom levels" of 1.93 percent in the fourth quarter of 2024. That's compared to the 2.11 percent in the previous three months and 2.54 percent in the final quarter of 2023. Of the 12 retail submarkets in Charleston, Colliers recorded vacant space in just five of them. The highest was in West Ashley, which had 38,744 square feet.
Net absorption hit 172,500 square feet in the fourth quarter, up from the 100,300 square feet recorded in the previous three months and the 111.4 million at the end of 2023.
Shop space rent averaged 33.21 NNN per square foot, up 34 cents from the September quarter. The Calhoun to Broad (Peninsula) submarket posted the highest rents ($52.62 per square foot, followed by the Calhoun to Line (Peninsula), at $43.27.
Colliers attributes the robust retail fundamentals in Charleston to the area's resilient local economy. This is underscored by a low unemployment rate of 3.51 percent and a year-over-year GDP growth of 2.82 percent.
"Income levels are growing across the market as Charleston remains a destination for remote workers, spurring interest from higher-end grocers including a new Mount Pleasant lease by Fresh Market," the CRE firm wrote.
The one negative to watch out for is an increase in product heading to the market. Supply expanded to 138,100 square feet, from 100,900 square feet in the fourth quarter. Also, inventory rose by 100,000 square feet to reach 20.9 million at the end of 2024.
Meanwhile, Colliers said that investment activity has been "robust."
Some major recent retail leasing deals in Charleston included 21,000 square feet at 1110 Bowman Rd., 7,000 square feet at 701 E. Bay St., and 2,800 square feet at 420 Cross Park Road. The largest recent acquisition involved a $27.3 million purchase of Market at Mill Creek.