Charleston Office Market Report

Momentum remains despite increased supply. Entering 2025, metrowide vacancy sat below 9 percent after available direct and sublet stock contracted 15 percent last year. This downward trend may last into 2025, driven by strong demand for Class B/C space that led nearly all submarkets to see vacancy compression over 2024. Overall vacancy for mid- to-low tier space fell to a record low of 5.7 percent entering this year. Finance, insurance and real estate firms accounted for a notable share of new leases signed in 2024, mainly in Downtown and the Greater Charleston area. Tightening availability in these areas should bolster local rent gains in 2025. While metrowide Class A demand is softer, North Charleston holds promise after a 340-basis-point vacancy slide over 2024. With more terms extended into ten years and a substantial increase in new leases, North Charleston is seeing hints of improving demand.