THE CORNER OFFICE. off… · Submarket Total Building Total SF Direct Vacant SF % Vacancy YTD Net Absorption YTD Deliveries Under Construction Quoted Rates Daniel Island 65 1,975,876

960 Morrison Drive, Suite 400 | Charleston, SC 29403 | 843.747.1200 | lee-charleston.com

Monitoring Development in Charleston’s Office Market

THE CORNER THE CORNER OFFICE.OFFICE.

20202020VOLUME ONEVOLUME ONE

VOLUME ONEVOLUME ONE 20202020

The Charleston Office market continues to remain strong with the highest average rental rates in the state at $26.80/SF. Clearly a result of The

Holy City's endless population and job growth. This growth has pushed new construction into the neck of Charleston as well as the Summerville/Nexton area. Tech companies continue to flock to these booming areas, especially the neck, which has been aptly named the Charleston technology corridor. In addition, the deepening of the Port and the new terminal brings continued investment from major manufacturers.

Net absorption has improved nearly 36,000 SF since Q4 2019, indicating that office vacancy rates will level out and stop growing as they have been since Q2 2019. Regardless, Charleston's vacancy rate is still well below the national average and surrounding metro areas such as Greenville, Columbia, and even Charlotte.

The advent of the coronavirus is expected to have an impact on rental rates and absorption moving into Q2 2020 but its true effects will not be known for another 3 to 6 months. Barring the virus, new space coming online in 2020 should continue to lease quickly. Pete

Harper,CCIM

Submarket Total Building

Total SF Direct Vacant SF

%Vacancy

YTD Net Absorption

YTDDeliveries

Under Construction

QuotedRates

Daniel Island 65 1,975,876 SF 171,308 SF 8.67% (17,549 SF) 0 SF 19,840 $27.55

Dorchester County 426 1,986,291 SF 54,226 SF 2.73% (1,114 SF) 4,000 SF 20,000 SF $22.10

Downtown Charleston 565 6,647,057 SF 336,341 SF 5.06% (25,720 SF) 0 SF 522,998 SF $32.68

East Charleston County 3 35,233 SF 0 SF 0.00% 0 SF 0 SF 0 SF $26.89

East Islands/Mt. Pleasant 444 4,278,955 SF 304,619 SF 7.12% 24,140 SF 0 SF 37,660 SF $29.44

West Ashley 416 2,593,141 SF 192,411 SF 7.42% (27,253 SF) 28,934 SF 10,000 SF $24.70

James Island/Folly Beach 144 544,982 SF 35,860 SF 6.58% 14,579 SF 0 SF 0 SF $28.08

North Charleston 758 9,869,854 SF 1,072,853 SF 10.87% (116,446 SF) 0 SF 158,000 SF $23.95

Outlying Berkeley County 370 2,666,762 SF 171,206 SF 6.42% (16,938 SF) 0 SF 104,870 SF $22.13

West Charleston 30 98,452 SF 1,999 SF 2.03% 0 SF 0 SF 0 SF $23.84

West Island 75 294,156 SF 21,179 SF 7.20% (208 SF) 0 SF 0 SF $24.11

Market Totals 3,296 31,130,665 SF 2,378,382 SF 7.64% (166,509 SF) 32,934 SF 873,368 SF $26.79

OFFICE STANDINGS BY SUBMARKET

HIGHLIGHTS

NEXTON, A 5,000 ACRE MIXED-USE DEVELOPMET, IS GROWING RAPIDLY WITH MORE THAN 10 OFFICE PROJECTS UNDER CONSTRUCTION AND PROPOSED

INFASTRUCTURE AND ROAD IMPROVEMENTS ALONG THE I-26 CORRIDOR PAVE THE WAY FOR SUSTAINABLE ECONOMIC GROWTH

THE NECK OF THE PENINSULA IS BOOMING WITH NEW DEVELOPMENTS BRINGING IN MULTIPLE MIXED-USE AND OFFICE DEVELOPMENTS LIKE THE MORRIS, CHARLESTON TECH CENTER AND MANY MORE

MARKET OVERVIEW

Vacancy 7.64%

Q1 2020 FAST FACTSOFFICE INVENTORY SNAPSHOT

Net Construction Delivery32,934 SF

Average Rental Rate$26.79 / SF

Under Construction873,368 SF

Net Absorption(166,509) SF

Total Inventory31,130,665 SF

THE CORNER OFFICE LOCATION MAPALL INVENTORY INCLUDING DELIVERED, UNDER CONSTRUCTION AND PROPOSED

THE CORNER OFFICE MAP LEGEND

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DELIVERED

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4500 LEEDS AVE.

22 WESTEDGE ST.

4920 O’HEAR AVE.

997 MORRISON DR.

4900 O’HEAR AVE.

320 BROAD ST.

677 KING ST.

1640 MEETING ST.

1014 ST. ANDREWS BLVD.

297 SEVEN FARMS DR.

1814 CROWN COMMONS WAY

4922 O’HEAR AVE.

1247 NEXTON PKWY.

UNDER CONSTRUCTION

1510 MEETING ST.

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5

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8

838 MORRISON DR. 82 MARY ST.

1080 + 1090 MORRISON DR. 1121 REMOUNT RD.

0 MIDTOWN AVE.

3055 MAYBANK HWY.

877 ISLAND PARK DR.

774 S. SHELMORE BLVD.

0 INGLESIDE BLVD.

3520 W. MONTAGUE AVE.

0 FAISON RD.

PROPOSED

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142

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14 846 ST. ANDREWS BLVD.

Lee & Associates is the listing agent

DELIVERED OFFICE BUILDINGS2020 | 10,000 SF AND ABOVE

22 WESTEDGE STREET22 WESTEDGE

Charleston, SC 29403 (Charleston County)

Status: ExistingRBA: 155,358 SF | # Floors: 8Asking Rate: $39.50/SF, Full Service

Available SF: 52,480 SF | % Leased: 65.99%Tenant(s): MUSC, Harbour Club, Flagship WestEdge, REV Federal Credit Union, Charleston Orthopedic, SCRA - Vikor Scientific

4500 LEEDS AVENUEWORLD TRADE CENTER CHARLESTONN. Charleston, SC 29405 (Charleston County)

Status: Existing RBA: 1,057,000 SF | # Floors: 2Asking Rate: $17.00 - 24.00/SF, Full Service

Available SF: 164,715 SF | % Leased: 84.42%Tenant(s): Maritime Association of South Carolina, MAHLE Behr, Mandex, Limestone College, Primerica, Bridge Network

2

1014 ST. ANDREWS BLVDTRULUCK CENTER


Status: ExistingRBA: 33,011 SF | # Floors: 3Asking Rate: $33.75/SF, Full Service

Available SF: 18,579 SF | % Leased: 43.72%Tenant(s): Sweetgrass Plastic Surgery, Advanced Dentistry of South Carolina, Doctor's Care

297 SEVEN FARMS DRIVEDaniel Island, SC 29492 (Berkeley County)

Status: ExistingRBA: 30,442 SF | # Floors: 3Asking Rate: $23.00 - 24.00/SF, NNN

Available SF: 3,000 SF | % Leased: 90.15%Tenant(s): The New Primal, Island Eye Care

43

UNDER CONSTRUCTION OFFICE BUILDINGS2020 | 10,000 SF AND ABOVE

838 MORRISON DRIVEMORRISON YARD


Status: Under ContructionRBA: 135,000 SF | # Floors: 7; 12 Stories TallAsking Rate: $30.00/SF, NNNAvailable SF: 135,000 SF | % Leased: 0%Tenant(s): None

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1080+ 1090 MORRISON DRIVETHE MORRIS


Status: Under ConstructionRBA: 115,000 SF | # Floors: 3Asking Rate: Call for ratesAvailable SF: 115,000 SF | % Leased: 0%Tenant(s): None

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4920 O’HEAR AVENUEINGEVITY - GARCO PHASE II

N. Charleston, SC 29405 (Charleston County)

Status: Under ConstructionRBA: 110,000 SF | # Floors: 4Asking Rate: $25.00/SF, NNN

Available SF: 0 SF | % Leased: 100%Tenant(s): Ingevity

1510 MEETING STREETTHE BELVIDERE


Status: Under ConstructionRBA: 110,000 SF | # Floors: 5Asking Rate: $36.00/SF, Full Service

Available SF: 110,000 SF | % Leased: 0%Tenant(s): None

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997 MORRISON DRIVECHARLESTON TECH CENTER


Status: Under ConstructionRBA: 93,000 SF | # Floors: 6Asking Rate: $38.50-42.50/SF, Full Service

Available SF: 60,000 SF | % Leased: 35.48%Tenant(s): Charleston Digital Corridor and Non-Disclosed Tenants

4900 O’HEAR AVE GARCO MILL

N.Charleston, SC 29405 (Charleston County)


Available SF: 20,000 SF | % Leased: 76.47%Tenant(s): Serendipity Labs, C.H. Robinson

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1640 MEETING STREETTHE REFINERY


Status: Under ConstructionRBA: 45,000 SF | # Floors: 3Asking $35.00/SF, Full ServiceAvailable SF: 27,000 SF | % Leased: 40%Tenant(s): Non-Disclosed Tenants

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1247 NEXTON PARKWAYHOME TELECOM

Summerville, SC 29486 (Berkeley County)


Available SF: 13,000 SF | % Leased: 35.00%Tenant(s): Home Telecom

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320 BROAD STREETTHE JASPER


Status: Under ConstructionRBA: 75,000 SF | # Floors: 6Asking Rate: $40.00/SF, Full ServiceAvailable SF: 15,443 SF | % Leased: 79.41%Tenant(s): The Beach Company, Wells Fargo

4922 O’HEAR AVENUEGARCO PHASE III

N.Charleston, SC 29405 (Charleston County)


Available SF: 33,000 SF | % Leased: 26.67%Tenant(s): Charleston Chamber of Commerce

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774 S. SHELMORE BLVDTHE SHELMORE

Mount Pleasant, SC 29464 (Charleston County)

Status: Under RedevelopmentRBA: 46,000 SF | # Floors: 1Asking Rate: $28.00/SF, NNNAvailable SF: 46,000 SF | % Leased: 0.00%Tenant(s): None

677 KING STREETCharleston, SC 29403 (Charleston County)

Status: Under ConstructionRBA: 68,479 SF | # Floors: 4Asking Rate: $31.00-32.00/SF, NNNAvailable SF: 63,566SF | % Leased: 7.17%Tenant(s): Non-Disclosed Tenant

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1121 REMOUNT ROADREMOUNT BUSINESS PARK


Status: ProposedRBA: 76,652 SF | # Floors: 1Asking Rate: $17.50/SF, NNN


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82 MARY STREETFREIGHT YARD STATION




2

PROPOSED OFFICE BUILDINGS2020 | 10,000 SF AND ABOVE

0 MIDTOWN AVENUEMIDTOWN MT. PLEASANT

Mt. Pleasant SC, 29464 (Charleston County)

Status: ProposedRBA: 71,000 SF | # Floors: 2Asking Rate: $34.50/SF, Full Service


3

846 ST. ANDREWS BLVDMEDICAL OFFICE BUILDING



Available SF: 7,970 SF | % Leased: 20.30%Tenant(s): Shelbourne & Associates

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1814 CROWNE COMMONS WAYLIVE OAKS SQUARE

Johns Island, SC 29455 (Charleston County)


Available SF: 10,915 SF | % Leased: 27.49%Tenant(s): Unknown

13

3055 MAYBANK HIGHWAY JOHNS ISLAND MEDICAL CENTER

Johns Island, SC 29455 (Charleston County)

Status: ProposedRBA: 76,500 SF | # Buildings: 5Asking Rate: $21.00 - 24.00/SF, NNN


4


PROPOSED OFFICE BUILDINGS2020 | 10,000 SF AND ABOVE

0 INGLESIDE BLVDINGLESIDE OFFICE BUILDING

Ladson, SC 29456 (Dorchester County)

Status: ProposedRBA: 26,428 SF | # Floors: 2Asking Rate: $21.00 - 23.00/SF, NNN


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877 ISLAND PARK DRIVEDANIEL ISLAND TOWN CENTER

Daniel Island, SC 29492 (Berkeley County)


Available SF: 9,920 SF | % Leased: 50.85%Tenant(s): Non-Disclosed Tenant

8

CHARLESTON, SC

OFFICE LISTINGS

386,151 SFTOTAL SQUARE FEET LEASED

$63 MILLIONTRANSACTION VOLUME

152,900 SFTOTAL SQUARE FEET SOLD

128TOTAL LEASE TRANSACTIONS

9TOTAL SALE TRANSACTIONS

LEE & ASSOCIATES CHARLESTON2019 ACTIVITY

3520 WEST MONTAGUEMONTAGUE OAKS OFFICE PARK


Status: ProposedRBA: 30,000 SF | # Floors: 4Asking Rate: $29.75/SF, Full Service


5

Status: ProposedRBA: 60,000 SF | # Floors: 2Asking Rate: $26.00/SF, NNNAvailable SF: 35,000 SF | % Leased: 0%Tenant(s): None

0 FAISON ROAD CAROLINA PARK

Mt. Pleasant, SC 29466 (Charleston County)

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https://www.lee-charleston.com/main/properties

(843) [email protected]

BOB NUTTALL, SIOR, CPM | Managing PrincipalBob specializes in two areas of our company’s service lines: brokering and managing commercial properties for our clients. In the brokerage division, he primarily specializes in representing owners of office and medical office properties, from both a leasing and sales standpoint. He also works with select buyers and tenants on their behalf to locate property for them. In the property management division he works daily with our property management staff, which has grown into one of the largest third-party management companies in the greater Charleston area.


REID DAVIS, CCIM, SIOR | Managing PrincipalReid is an office specialist with diverse and extensive background in real estate sales and marketing. His focus is on landlord and owner representation, having served both small local companies and Fortune 500 corporations throughout the Southeast. His experience covers the full spectrum of commercial real estate including sales, leasing, site selection, development, management and corporate services. His goal is to successfully guide clients in their best interest and, ultimately, bring more to their bottom line.


PETE HARPER, CCIM | PrincipalPete is a Principal with Lee & Associates, specializing in office sales and leasing for third party owners and tenants. Mr. Harper represents clients in the acquisition, disposition and leasing of office buildings, retail properties and vacant land. Mr. Harper joined Lee & Associates in 2011 and was named a Principal in 2015. He has been awarded the CoStar Power Broker Award for three years running, and has been Charleston’s #1 producer by number of office lease transactions the past four years, based on CTAR rankings.


MILES BARKLEY | Broker, PrincipalWith more than 30 years of experience in commercial real estate as a business owner, broker, developer and property/asset manager, Miles has witnessed firsthand the overwhelming growth the Lowcountry has enjoyed. As a native Charlestonian, he considers it a privilege to represent his clients on all sides of the commercial real estate equation in a city that he and his family are honored to call home.


MILTON THOMAS, III, CCIM, SIOR | Managing PrincipalMilton is a twenty-nine year veteran of the commercial real estate industry here Charleston, SC. He began his career with Prudential Carolinas Realty as an associate and quickly rose to run their commercial division for Charleston. In 1999, he and partner, Bob Nuttall, formed Anchor Commercial Real Estate which was a small boutique service provider. Today that company has evolved into Lee & Associates Charleston which is one of the largest and dominant service providers in the greater Charleston market.


CORI NUTTALL | AssociateCori Nuttall is a licensed Associate specializing in tenant representation services for commercial real estate users. Cori has represented office and industrial tenants in a variety of industries ranging from financial services, medical, construction, contractors and corporate institutions. She is a valuable member of the Tenant Advisory Group, a team at Lee & Associates created for the exclusive representation of tenants and commercial users.

MEGHAN MCKENZIE | Broker Services CoordinatorAs a Broker Services Coordinator, Meghan coordinates with clients and brokers in all aspects of marketing and lease administration. She maintains signage and listing files, and coordinates print and internet marketing materials. Meghan also performs various public relations and administration functions. Meghan has spent her entire professional career in commercial real estate. She loves all aspects of the real estate business.

THOMAS FAWCETT | Transitional ResearcherAs a Transitional Researcher for Lee & Associates Charleston, Thomas helps prepare market research reports and comp records. He also maintains pipeline records, aids brokers in all capacities, and actively participates in a rigorous training program. After graduating from Auburn, Thomas spent his summer as an intern here at Lee and has also completed internships at Goepper Burkhardt Retirement Wealth Management. He actively holds an Alabama Real Estate license and is currently focused on acquiring a South Carolina Real Estate License.

HUNTER HARTLEY | Transitional ResearcherAs a Transitional Researcher for Lee & Associates Charleston, Hunter helps prepare market research reports and comp records. He also maintains pipeline records, aids brokers in all capacities, and actively participates in a rigorous training program. Hunter began his journey with Lee last summer as an intern and has also completed internships at Trinity Partners Columbia.

ANN BENEFIELD | Marketing ManagerAnn started with Lee & Associates as a Retail Services Coordinator, where she managed the listing process from start to finish, coordinated with clients and brokers, and assisted in marketing processes and analysis. She now uses her skills obtained from her prior role to successfully manage the marketing operations at Lee & Associates. She is now responsible for creating and executing marketing strategies and tactics to support the office, digital & social media management, as well as in-depth market research.


CAMERON YOST | AssociateCameron is a Commercial Associate whose primary focus is the sale & lease of multi-tenant office properties in South Carolina. She began working at Lee & Associates in 2015, immersing herself in Charleston’s commercial real estate scene as Brokerage Services and Marketing Coordinator. Her knowledge of the local real estate scene enables her to match specific client needs with market opportunities. Cameron serves Lee’s clients with a deep understanding of an array of industries.

WESTON BRADLEY | AssociateWeston holds a South Carolina real estate license and is a sales associate with Lee & Associates Charleston. After joining Lee in January of 2019 and completing the transitional researcher program, Weston graduated to the brokerage team in July and is focused on the sales and leasing of commercial, industrial and land properties in the Charleston Tri-County area and in the State of South Carolina.


OUR BACKSTAGE TEAM

OUR OFFICE EXPERTS


WADE ALLEN | Broker-In-Charge | PresidentWade is responsible for creating and executing the company business strategy in collaboration with the firm’s Principals and shareholders. The President’s leadership oversight includes recruiting high caliber talent, developing associates to their maximum potential, financial oversight, corporate engagement, managing company legal requirements and growing multiple business lines within defined markets. Wade is a 35-year veteran of the commercial real estate industry with significant experience in brokerage transactions, facility management, as well as the construction and development of multiple asset types.

960 Morrison Drive, Suite 400 | Charleston, SC 29403 | 843.747.1200 | lee-charleston.com

We obtained the information contained herein from sources we deem to be reliable; however, we have not verified the accuracy or suitability of said information and we hereby make no guarantee, warranty or representation with regard to said information. This information is submitted subject to the possibility of errors or omissions; change in price, rental, or other conditions; prior sale or lease; and/or withdrawal from the market without notice. Any projections, opinions, assumptions, and estimates included herein are for example only; these examples may not represent current or future performance of the subject property. We hereby advise any party interested in the subject property to seek tax and/or legal advice in order to conduct one’s own investigation of the subject property and any contemplated transaction thereon.

Documents

THE CORNER OFFICE. off… · Submarket Total Building Total SF Direct Vacant SF % Vacancy YTD Net Absorption YTD Deliveries Under Construction Quoted Rates Daniel Island 65 1,975,876