Charleston Office Market Report

White-collar sector balloons. While many major markets had more office tenants exit leases than enter them over the past year, Charleston remained strong. Three of the four largest submarkets had more square footage absorbed than completed over the 12-month span ending in March, reducing availability metrowide. A record of about 680 businesses were formed through the period, stirring demand for professional services and causing many companies to expand local footprints as the traditional office-using sector grew by 11.9 percent — the fastest pace among major metros. Law firms, such as Parker Poe Adams & Bernstein, as well as financial managers like Pinnacle Bank, moved into CBD offices this year as a result. At the same time, lively recreational amenities are cementing the metro as an option for professionals seeking remote arrangements, with this being aided by the opening of six new coworking centers since last April. Even so, tapering economic activity may limit office expansions near-term. This combines with a sizable pipeline to lift vacancy in 2023.