Charleston Retail Market Report

Population growth sustains retailer demand. Charleston ranked fifth among East Coast port cities in the net absorption-to-inventory ratio last year, reflecting retailer confidence in the metro. Sustained in-migration and expanding suburbs continue to drive tenant demand, especially in outlying areas. Retailers have followed residential growth into Outlying Berkeley and Dorchester counties, where vacancy has held below 3 percent for three straight years. Moving forward, new supply will be limited here and elsewhere across the market. Concurrently, the number of homes brought online is anticipated to rise after single-family permit activity surged to an 18-year high in mid-2024. As new households move into these homes, consumer demand for nearby retail is anticipated to rise. This dynamic should support strong leasing momentum that allows metro availability to compress in 2025. This tightening will aid property owners, as the metro’s average asking rate will climb while tenants compete for a shrinking pool of quality storefronts in high-growth suburbs and the urban core.