2025 Archives - NAI Charleston

4Q25: Charleston MSA Retail Snapshot

Charleston’s retail market remains exceptionally tight with consistent tenant demand for well-located spaces. Market-wide vacancy is holding near 3.1%, and there is positive net absorption of approximately 147,677 square feet over the recent period. Ongoing retail construction—totaling roughly 212,000 square feet underway—is encouraging, though entitlement timelines and development hurdles continue to moderate the pace of new supply. Core submarkets including North Mount Pleasant, West Ashley, James Island, and Johns Island continue to report very limited availability generally between 0% and 2%, while North Charleston and Daniel Island combined remain slightly softer but still healthy at roughly 5% to 6% vacancy. Average rental rates have strengthened to about $26.36 PSF, and with continued challenges from the municipalities and utility providers in the growth areas, some new development is still anticipated.

4Q25: Charleston MSA Office Snapshot

Overall office vacancy in Charleston remained below 6% at the close of 2025. Coupled with only a slight, nominal adjustment in overall rental rates, these key indicators reflect a steady and healthy market environment for both landlords and tenants. Demand and occupancy are expected to stay strong in sought-after submarkets such as James Island, West Ashley, and Mount Pleasant. Smaller office spaces in these areas continue to appeal to local tenants who value proximity to home, while new development opportunities remain extremely limited in these largely infilled markets. Looking ahead to 2026, we’ll see how quickly developers regain confidence and move forward with new projects as broader economic conditions and key market indicators continue to improve.

4Q25: Charleston MSA Industrial Snapshot

Charleston’s industrial market closed 2025 with tightening fundamentals, as vacancy declined to 14.9% and asking rents increased to $10.72/SF. Robust net absorption of nearly 3 million square feet over the past 12 months highlights the continued tenant demand, particularly from manufacturing, logistics, and build-to-suit users. At the same time, the development pipeline has moderated, with just over 1.65 million square feet under construction—helping rebalance supply and demand. Together, these trends point to a healthier, more disciplined industrial market entering 2026.