Economy
The Charleston economy continued to expand, adding an average of 42 residents per day while nonfarm employment increased 0.9% year-over-year (YOY). Known for its hospitality, tourism, and high quality of life, its industrial economy benefits from strong port activity and rail connectivity to inland metros across the Southeast.
Supply And Demand
Charleston recorded more than 1.2 million square feet (msf) of new leasing in Q3, up 52.3% YOY and bringing year-to-date (YTD) leasing to more than 5.1 msf. This marked the strongest leasing activity through the first three quarters of a year since 2023, up 67.9% from the comparable period in 2025. Average deal size measured nearly 47,400 square feet (sf) in Q3, more than double the Q3 2025 average, as two leases exceeding 250,000 sf accounted for roughly two-thirds of quarterly volume. Renewals added another 119,000 sf across two transactions, bringing total leasing activity to nearly 1.4 msf in Q3 and more than 6.0 msf YTD, up 61.8% YOY.
The metro recorded another quarter of occupancy gains, bringing the YTD total to more than 1.4 msf, approaching the more than 1.5 msf recorded through Q3 2025. While overall vacancy remained stable quarter-over-quarter (QOQ) at 12.9%, more than 937,000 sf of leased space is still awaiting tenant move-ins. Reflecting this, the overall vacant available rate—which tracks only space that is both vacant and actively available for lease—stood at 11.7%, signaling that conditions for tenants seeking space are tighter than the headline rate suggests. Only one 119,600-sf building is currently under construction, leaving demand positioned to outpace new supply. As recently signed leases translate into physical occupancy, vacancy is expected to decline further.
Pricing
Overall asking rents increased 0.8% QOQ to $8.24 per square foot in Q3, the fourth consecutive quarterly increase and a 3.6% gain YOY. The increase reflected changes in the composition of available space rather than widespread rent growth. Leasing removed lower-priced options from the market, primarily in the Goose Creek/Hanahan/Moncks Corner submarket, where average asking rents increased 13.9% QOQ. Most other submarkets recorded flat or declining rents during the quarter.
