PAUL'S MARKET JOURNAL

Q2 2024 Charleston Market Update

Charleston, recently dubbed as "Silicon Harbor," is emerging as an innovation hub for the tech sector while maintaining its traditional strength in the shipping sector. The market has experienced consistent demand, with over 2,000 units absorbed in the first quarter alone, and no net move-outs recorded in the past two years. This steady absorption rate keeps apartment fundamentals strong, with Charleston still viewed by many as an under-the-radar market.

The unit inventory in Charleston grew by approximately 3.5% over the past year, with completions expected to double in the coming year, representing an increase of 7% in current supply. Despite this growth, the city has managed to maintain solid occupancy rates, with a slight decrease of only about 20 basis points from the previous year.

Employment growth remains strong at nearly 4.5%, one of the highest rates nationwide, supporting positive rent performance across all property classes. The upcoming increase in completions will concentrate in areas like Summerville & Goose Creek which will require careful management to handle the new supply effectively. We might see a temporary lull in lease up for these units, however I’m confident that we will see full absorption by EOY.

Given Charleston’s historical ability to absorb new units and its continued economic growth, the near-term outlook for the real estate market remains favorable.

Based on my analysis from Q1 to Q2 in 2024, there have been slight developments in Charleston’s real estate market. In Q1, I emphasized the expected 7.5% increase in inventory, primarily affecting Class A properties in Summerville and the other outlying suburbs. In Q2, however, the narrative is evolving to focus on a broader inventory growth of about 3.5% over the past year, with completions set to double. The steady- almost identical occupancy rates and high renewal rates from Q1 continued into Q2, but with added detail on the precise impact of new unit completions across various submarkets.

TL;DR: The Charleston market fundamentals remain strong in Q2 of 2024.

IN THE NEWS

Long-planned $2B Magnolia project in Charleston still chugging along

The long-planned $2 billion Magnolia real estate project in Charleston is progressing steadily after significant investment. Since 2017, Highland Resources has invested over $120 million in the 194-acre site, focusing on cleanup and infrastructure. The project aims to create a major live-work-play destination, featuring multifamily residences, office spaces, hotels, restaurants, entertainment venues, and retail stores. Recently, Highland received an award from the EPA for the successful cleanup of a Superfund-designated area, marking a significant milestone. The next steps include a new $100 million preparation phase and beginning vertical construction, starting with a 125,000-square-foot office complex designed by Pickard Chilton.

Source: The Post and Courier

Elliot’s Off Market List

Be the First to Access Charleston's Real Estate Deals

NEW PUBLICLY MARKETED DEALS IN CHARLESTON

As of this week, there are no new listing, and nothing has closed, but 1 property has gone under contract.

49 Smith Street - Historic European villa-style estate in downtown Charleston's Harleston Village went under contract this week. 8 residential units featuring 10 bedrooms, 10.5 bathrooms, custom wood interiors, and rare rooftop deck access. Potential for investor ROI or condo conversion. Half block from Wentworth Mansion, walking distance to Colonial Lake and amenities. Original brick from 1860 and 1881. Approx. 7525 SF. See flyer here.

The below list contains every single multifamily property (5+ units) being publicly marketed in Charleston that we have compiled from LoopNet, Crexi, Costar, and 2 different multiple listing services. You can also click on the image to view the spreadsheet.

Should any of these properties interest you, please do not hesitate to reach out to me directly. I would be more than happy to provide you with the additional information I have on file.