MARKET REPORT. The Lee & Associates Charleston Brokerage Team CONNECTING PEOPLE WITH PROPERTIES BROKERAGE - MANAGEMENT - DEVELOPMENT MARKET INDICATORS

Transcription

1 The Lee & s Charleston age Team PRINCIPAL TEAM R. Milton Thomas, III, Reid P. Davis, Will Sherrod J. Miles Barkley BROKER TEAM Gordon Geer Lindsey Halter Jack V. Owens Charleston Metro Area October 2017 MARKET INDICATORS Pete Harper Thomas G. Buist, Jr. new people move to the region every day rank in U.S. for largest metro by population Jon Chalfie Henry Fishburne TOP 12 SIGNIFICANT TRANSACTIONS IN 2017 In Order by Gross Deal Value 1064 Gardner Road, Charleston, $5,700,000 Sale of 67,420 SF to 1001 Harborview, LLC; Pete Harper, & Bob Nuttall,, CPM 101 Coleman Blvd., Mt. Pleasant, $2,815,448 Lease of 12,464 SF to Tabula Rasa Healthcare, Inc.; Reid Davis,, 1770 Hock Avenue, North Charleston, $2,016,939 Lease of 88,288 SF to Georgia Marine Warehouse Company; Thomas Buist, Jedburg Road, Summerville, $4,913,760 Lease of 44 Acres to Pilot Travel Centers, LLC; Milton Thomas,, 250 Ponsbury Road, Mt. Pleasant, $2,700,000 Sale of 14,883 SF to Rainbow Rascals SC; Jack Owens, 4269-G Crosspoint Drive, Ladson, $1,756,485 Lease of 39,000 SF to Chadwell Supply, Inc.; Pete Harper, 1950 Hanahan Road, North Charleston, $3,750,000 Sale of 50,000 SF to 1950 Hanahan Road, LLC; Milton Thomas,, 460 Remount Road, Charleston, $2,500,000 Sale of 35,600 SF to Marabu US Properties, LP; Miles Barkley Jedburg Road & Old Dairy Road, Summerville, $1,652,000 Sale of Acres to Worldwide Equipment of SC, Inc.; Jack Owens, 5 Corporate Parkway, Goose Creek, $3,225,000 Sale of 40,000 SF to Greg Sanders; Milton Thomas,, 3270 Benchmark Drive, Ladson, $2,200,000 Sale of 30,000 SF to Glenavon, LLC; Milton Thomas,, 209 St. James Avenue, Goose Creek, $1,575,000 Sale of 10,000 SF to NVS, LLC; Will Sherrod, DEFINITIONS Availability Rate: A measurement expressed as a percentage of the total amount of available space divided by the total amount of existing inventory. Vacancy Rate: A measurement expressed as a percentage of the total amount of physically vacant space divided by the total amount of inventory. The office market availabilities continue to tighten in all submarkets. There are only four existing available Class A spaces downtown over 5,000 square feet and the suburban sub markets are also limited on large blocks of space. Some new construction and tight vacancy have finally put a sizable jump in office rental rates. rank in the U.S. for advanced industries sector Despite doom and gloom reports that brick and mortar retail is going to disappear in favor of online shopping and that Charleston area municipalities are trying to halt commercial growth, the retail market in Charleston remains vibrant. Vacancy remains historically low and lease rates remain strong. There is still development activity and new construction deals are being announced, although the efforts against this new construction are mounting and lease rates have leveled off. CONNECTING PEOPLE WITH PROPERTIES Emily Mills % unemployment rate; 0.6% below the national average* Sources: U.S. Census Bureau, Brookings Institution *As of July 2017 Ryan Welch MARKET REPORT 960 Morrison Drive, Suite 400 Charleston, SC Robert H. Nuttall, CPM INDUSTRIAL Without people, buildings are empty shells which collect dust, pests, mold, mildew, vandals, and worse. They are dark and lifeless, void of purpose and character. That s where Lee & s comes in. The Lee team serves as the bridge connecting people with properties. We take time to listen and understand what people need, and then work to match them with the property which best fulfills those needs. Our passion for this kind of connection is what sets us apart from other real estate providers. When people are matched with the right property, the people provide it energy and the property comes to life again with a renewed purpose. We invite you to allow Charleston s most experienced commercial real estate firm to serve all of your brokerage, development and property management needs. Charleston is a very desirable place to live and work now more than ever. Although the commercial real estate market will remain complicated, the team at Lee & s is more than capable of keeping it simple for you. Speculative building development is soaring in Charleston due to lack of supply and high rental rates of existing product in the industrial market. Delivery of this new product is creating additional vacancy to be absorbed by new users generated by growth in the region. We expect speculative development of flex and smaller warehouse space to pick up in volume over the next four quarters. Let us show you how we put People First, Properties Second. Advantage: Lee! BROKERAGE - MANAGEMENT - DEVELOPMENT Phone (843) Fax (843) Contributors: Reid Davis,, Will Sherrod, Thomas Buist,

2 Charleston, Berkeley & Dorchester Counties # of Properties Total SF...20,379,839 Total Available SF...2,348,704 (11.2%) Total Vacant SF...1,639,009 (8.0%) Average Rental Rates...$21.13/SF SUMMERVILLE Summerville/Goose Creek # of Properties...63 Total SF...1,722,386 Total Available SF...241,721 (13.8%) Total Vacant SF...142,893 (8.3%) Average Rental Rates...$19.42/SF Daniel Island North Charleston # of Properties...39 Total SF...1,565,609 Total Available SF ,269 (7.3%) Total Vacant SF... 28,189 (1.8%) Average Rental Rates...$25.92/SF # of Properties Total SF...8,000,868 Total Available SF..1,114,057 (13.6%) Total Vacant SF...1,031,842 (12.9%) Average Rental Rates...$17.64/SF NORTH WEST ASHLEY West of the Ashley DANIEL ISLAND # of Properties...60 Total SF...1,529,983 Total Available SF...187,813 (12.3%) Total Vacant SF...166,586 (10.9%) Average Rental Rates...$23.26/SF JOHNS ISLAND JAMES ISLAND MOUNT PLEASANT Mount Pleasant Downtown # of Properties Total SF...5,060,122 Total Available SF ,086 (8.1%) Total Vacant SF...165,586 (3.3%) Average Rental Rates...$32.87/SF FOLLY BEACH # of Properties Total SF...2,462,116 Total Available SF...199,923 (8.0%) Total Vacant SF ,913 (4.2%) Average Rental Rates...$27.46/SF as of 10/2/2017

3 Charleston, Berkeley & Dorchester Counties # of Properties Total SF...29,401,770 Total Available SF... 1,691,094 (5.7%) Total Vacant SF...1,242,149 (4.2%) Average Rental Rates...$21.12/SF SUMMERVILLE Summerville/Goose Creek # of Properties Total SF...7,682,073 Total Available SF ,714 (3.9%) Total Vacant SF...197,293 (2.6%) Average Rental Rates...$17.16/SF Daniel Island North Charleston # of Properties...11 Total SF...397,391 Total Available SF...31,344 (7.4%) Total Vacant SF... 25,791 (6.5%) Average Rental Rates...$21.58/SF # of Properties Total SF...8,348,052 Total Available SF...559,270 (6.7%) Total Vacant SF ,979 (5.3%) Average Rental Rates...$14.62/SF NORTH WEST ASHLEY West of the Ashley DANIEL ISLAND # of Properties Total SF...6,876,911 Total Available SF ,854 (4.3%) Total Vacant SF ,972 (3.1%) Average Rental Rates...$17.07/SF JOHNS ISLAND JAMES ISLAND MOUNT PLEASANT Mount Pleasant Downtown # of Properties...91 Total SF...1,628,238 Total Available SF ,702 (7.8%) Total Vacant SF...45,788 (2.8%) Average Rental Rates...$44.93/SF FOLLY BEACH # of Properties Total SF...4,477,900 Total Available SF...319,033 (7.1%) Total Vacant SF ,429 (6.0%) Average Rental Rates...$22.88/SF as of 10/2/2017

4 Charleston, Berkeley & Dorchester Counties # of Properties...1,192 Total SF...67,341,287 Total Available SF...8,177,229 (11.3%) Total Vacant SF...5,890,045 (8.7%) Average Rental Rates...$5.67/SF SUMMERVILLE Summerville/Goose Creek # of Properties Total SF...25,835,165 Total Available SF...4,632,774 (17.0%) Total Vacant SF...3,157,717 (12.2%) Average Rental Rates...$4.91/SF Daniel Island North Charleston # of Properties...73 Total SF...5,479,989 Total Available SF...430,845 (7.9%) Total Vacant SF...316,720 (5.8%) Average Rental Rates...$6.16/SF # of Properties Total SF...33,831,225 Total Available SF..3,756,894 (10.8%) Total Vacant SF...2,658,634 (7.9%) Average Rental Rates...$6.13/SF NORTH WEST ASHLEY West of the Ashley DANIEL ISLAND # of Properties...77 Total SF...1,938,495 Total Available SF...100,610 (5.2%) Total Vacant SF...100,610 (5.2%) Average Rental Rates...$7.24/SF JOHNS ISLAND JAMES ISLAND MOUNT PLEASANT Mount Pleasant Downtown # of Properties...34 Total SF...1,059,915 Total Available SF...50,727 (4.8%) Total Vacant SF...66,727 (6.3%) Average Rental Rates...$10.00/SF FOLLY BEACH # of Properties...41 Total SF...1,025,884 Total Available SF...10,850 (1.1%) Total Vacant SF... 27,750 (2.7%) Average Rental Rates...$15.62/SF as of 10/2/2017

5 The Lee & s Charleston age Team PRINCIPAL TEAM R. Milton Thomas, III, Reid P. Davis, Will Sherrod J. Miles Barkley BROKER TEAM Gordon Geer Lindsey Halter Jack V. Owens Charleston Metro Area October 2017 MARKET INDICATORS Pete Harper Thomas G. Buist, Jr. new people move to the region every day rank in U.S. for largest metro by population Jon Chalfie Henry Fishburne TOP 12 SIGNIFICANT TRANSACTIONS IN 2017 In Order by Gross Deal Value 1064 Gardner Road, Charleston, $5,700,000 Sale of 67,420 SF to 1001 Harborview, LLC; Pete Harper, & Bob Nuttall,, CPM 101 Coleman Blvd., Mt. Pleasant, $2,815,448 Lease of 12,464 SF to Tabula Rasa Healthcare, Inc.; Reid Davis,, 1770 Hock Avenue, North Charleston, $2,016,939 Lease of 88,288 SF to Georgia Marine Warehouse Company; Thomas Buist, Jedburg Road, Summerville, $4,913,760 Lease of 44 Acres to Pilot Travel Centers, LLC; Milton Thomas,, 250 Ponsbury Road, Mt. Pleasant, $2,700,000 Sale of 14,883 SF to Rainbow Rascals SC; Jack Owens, 4269-G Crosspoint Drive, Ladson, $1,756,485 Lease of 39,000 SF to Chadwell Supply, Inc.; Pete Harper, 1950 Hanahan Road, North Charleston, $3,750,000 Sale of 50,000 SF to 1950 Hanahan Road, LLC; Milton Thomas,, 460 Remount Road, Charleston, $2,500,000 Sale of 35,600 SF to Marabu US Properties, LP; Miles Barkley Jedburg Road & Old Dairy Road, Summerville, $1,652,000 Sale of Acres to Worldwide Equipment of SC, Inc.; Jack Owens, 5 Corporate Parkway, Goose Creek, $3,225,000 Sale of 40,000 SF to Greg Sanders; Milton Thomas,, 3270 Benchmark Drive, Ladson, $2,200,000 Sale of 30,000 SF to Glenavon, LLC; Milton Thomas,, 209 St. James Avenue, Goose Creek, $1,575,000 Sale of 10,000 SF to NVS, LLC; Will Sherrod, DEFINITIONS Availability Rate: A measurement expressed as a percentage of the total amount of available space divided by the total amount of existing inventory. Vacancy Rate: A measurement expressed as a percentage of the total amount of physically vacant space divided by the total amount of inventory. The office market availabilities continue to tighten in all submarkets. There are only four existing available Class A spaces downtown over 5,000 square feet and the suburban sub markets are also limited on large blocks of space. Some new construction and tight vacancy have finally put a sizable jump in office rental rates. rank in the U.S. for advanced industries sector Despite doom and gloom reports that brick and mortar retail is going to disappear in favor of online shopping and that Charleston area municipalities are trying to halt commercial growth, the retail market in Charleston remains vibrant. Vacancy remains historically low and lease rates remain strong. There is still development activity and new construction deals are being announced, although the efforts against this new construction are mounting and lease rates have leveled off. CONNECTING PEOPLE WITH PROPERTIES Emily Mills % unemployment rate; 0.6% below the national average* Sources: U.S. Census Bureau, Brookings Institution *As of July 2017 Ryan Welch MARKET REPORT 960 Morrison Drive, Suite 400 Charleston, SC Robert H. Nuttall, CPM INDUSTRIAL Without people, buildings are empty shells which collect dust, pests, mold, mildew, vandals, and worse. They are dark and lifeless, void of purpose and character. That s where Lee & s comes in. The Lee team serves as the bridge connecting people with properties. We take time to listen and understand what people need, and then work to match them with the property which best fulfills those needs. Our passion for this kind of connection is what sets us apart from other real estate providers. When people are matched with the right property, the people provide it energy and the property comes to life again with a renewed purpose. We invite you to allow Charleston s most experienced commercial real estate firm to serve all of your brokerage, development and property management needs. Charleston is a very desirable place to live and work now more than ever. Although the commercial real estate market will remain complicated, the team at Lee & s is more than capable of keeping it simple for you. Speculative building development is soaring in Charleston due to lack of supply and high rental rates of existing product in the industrial market. Delivery of this new product is creating additional vacancy to be absorbed by new users generated by growth in the region. We expect speculative development of flex and smaller warehouse space to pick up in volume over the next four quarters. Let us show you how we put People First, Properties Second. Advantage: Lee! BROKERAGE - MANAGEMENT - DEVELOPMENT Phone (843) Fax (843) Contributors: Reid Davis,, Will Sherrod, Thomas Buist,

6 The Lee & s Charleston age Team PRINCIPAL TEAM R. Milton Thomas, III, Reid P. Davis, Will Sherrod J. Miles Barkley BROKER TEAM Gordon Geer Lindsey Halter Jack V. Owens Charleston Metro Area October 2017 MARKET INDICATORS Pete Harper Thomas G. Buist, Jr. new people move to the region every day rank in U.S. for largest metro by population Jon Chalfie Henry Fishburne TOP 12 SIGNIFICANT TRANSACTIONS IN 2017 In Order by Gross Deal Value 1064 Gardner Road, Charleston, $5,700,000 Sale of 67,420 SF to 1001 Harborview, LLC; Pete Harper, & Bob Nuttall,, CPM 101 Coleman Blvd., Mt. Pleasant, $2,815,448 Lease of 12,464 SF to Tabula Rasa Healthcare, Inc.; Reid Davis,, 1770 Hock Avenue, North Charleston, $2,016,939 Lease of 88,288 SF to Georgia Marine Warehouse Company; Thomas Buist, Jedburg Road, Summerville, $4,913,760 Lease of 44 Acres to Pilot Travel Centers, LLC; Milton Thomas,, 250 Ponsbury Road, Mt. Pleasant, $2,700,000 Sale of 14,883 SF to Rainbow Rascals SC; Jack Owens, 4269-G Crosspoint Drive, Ladson, $1,756,485 Lease of 39,000 SF to Chadwell Supply, Inc.; Pete Harper, 1950 Hanahan Road, North Charleston, $3,750,000 Sale of 50,000 SF to 1950 Hanahan Road, LLC; Milton Thomas,, 460 Remount Road, Charleston, $2,500,000 Sale of 35,600 SF to Marabu US Properties, LP; Miles Barkley Jedburg Road & Old Dairy Road, Summerville, $1,652,000 Sale of Acres to Worldwide Equipment of SC, Inc.; Jack Owens, 5 Corporate Parkway, Goose Creek, $3,225,000 Sale of 40,000 SF to Greg Sanders; Milton Thomas,, 3270 Benchmark Drive, Ladson, $2,200,000 Sale of 30,000 SF to Glenavon, LLC; Milton Thomas,, 209 St. James Avenue, Goose Creek, $1,575,000 Sale of 10,000 SF to NVS, LLC; Will Sherrod, DEFINITIONS Availability Rate: A measurement expressed as a percentage of the total amount of available space divided by the total amount of existing inventory. Vacancy Rate: A measurement expressed as a percentage of the total amount of physically vacant space divided by the total amount of inventory. The office market availabilities continue to tighten in all submarkets. There are only four existing available Class A spaces downtown over 5,000 square feet and the suburban sub markets are also limited on large blocks of space. Some new construction and tight vacancy have finally put a sizable jump in office rental rates. rank in the U.S. for advanced industries sector Despite doom and gloom reports that brick and mortar retail is going to disappear in favor of online shopping and that Charleston area municipalities are trying to halt commercial growth, the retail market in Charleston remains vibrant. Vacancy remains historically low and lease rates remain strong. There is still development activity and new construction deals are being announced, although the efforts against this new construction are mounting and lease rates have leveled off. CONNECTING PEOPLE WITH PROPERTIES Emily Mills % unemployment rate; 0.6% below the national average* Sources: U.S. Census Bureau, Brookings Institution *As of July 2017 Ryan Welch MARKET REPORT 960 Morrison Drive, Suite 400 Charleston, SC Robert H. Nuttall, CPM INDUSTRIAL Without people, buildings are empty shells which collect dust, pests, mold, mildew, vandals, and worse. They are dark and lifeless, void of purpose and character. That s where Lee & s comes in. The Lee team serves as the bridge connecting people with properties. We take time to listen and understand what people need, and then work to match them with the property which best fulfills those needs. Our passion for this kind of connection is what sets us apart from other real estate providers. When people are matched with the right property, the people provide it energy and the property comes to life again with a renewed purpose. We invite you to allow Charleston s most experienced commercial real estate firm to serve all of your brokerage, development and property management needs. Charleston is a very desirable place to live and work now more than ever. Although the commercial real estate market will remain complicated, the team at Lee & s is more than capable of keeping it simple for you. Speculative building development is soaring in Charleston due to lack of supply and high rental rates of existing product in the industrial market. Delivery of this new product is creating additional vacancy to be absorbed by new users generated by growth in the region. We expect speculative development of flex and smaller warehouse space to pick up in volume over the next four quarters. Let us show you how we put People First, Properties Second. Advantage: Lee! BROKERAGE - MANAGEMENT - DEVELOPMENT Phone (843) Fax (843) Contributors: Reid Davis,, Will Sherrod, Thomas Buist,