2Q26: Charleston MSA Retail Snapshot

The Charleston retail market remained exceptionally tight in the second quarter of 2026, with vacancy declining to 3.1% despite modest inventory growth. Positive net absorption continued to reflect strong tenant demand, though limited available space constrained leasing activity. Average asking rents increased to $26.83 PSF, while a limited development pipeline and ongoing entitlement and construction challenges continue to restrict new supply. New construction retail space is now commanding rents in the upper $30s to $40 PSF range, reinforcing upward pressure on market rents. Downtown Charleston remains the region’s strongest retail submarket, with King Street continuing to achieve record lease rates as national retailers compete for a presence in the city’s historic core. Across the broader market, well-located anchored centers remain highly resilient, while repositioned neighborhood centers are demonstrating that strategic renovations and tenant mix improvements can successfully compete with new development in today’s high cost construction environment.