Q4 2025 Charleston Office Market Report_Bridge Commercial

CHARLESTON OFFICE MARKET REPORT

Q4 MARKET SNAPSHOT Inventory

15,670,537 SF Vacancy 9.2% Asking Rents

$31.59 SF 65,000 SF 60,423 SF

Deliveries

Q4 HIGHLIGHTS & TRENDS

• THE “FLIGHT TO QUALITY” REMAINS THE DOMINANT THEME, AS TENANTS CONTINUE PRIORTIZING NEWER, AMENITY-RICH PRODUCT WHILE OLDER BUILDINGS FACE LONGER LEASE-UP PERIODS.

• VACANCY HAS COMPRESSED FURTHER TO APPROXIMATELY 9.2%, SUPPORTED BY LIMITED DEVELOPMENT AND IMPROVED ABSORPTION.

• MARKET ASKING RENTS CONTINUED GROWTH IN Q4, INCREASING APPROXIMATELY 4.5%, YEAR-OVER-YEAR, LED BY CLASS A AND NEWER SUBURBAN PRODUCT.

• CONSTRUCTION ACTIVITY IS ANTICIPATED TO PICK UP, WITH THE CURRENT LOW SUPPLY AND TIGHTENING AVAILABILITY ACROSS KEY SUBMARKETS.

• OFFICE INVESTMENT ACTIVITY PICKED UP IN LATE 2025, SIGNALING RENEWED INVESTOR CONFIDENCE AS PRICING STABILIZES AND VALUE-ADD OPPORTUNITIES REEMERGE.

CHARLESTON’S OFFICE MARKET IS STABLE AND WELL POSITIONED FOR GROWTH

Q4 2025 RECAP

• Class A office rents surged approximately 10% year-over-year in Downtown Charleston, reinforcing sustained tenant demand for high-quality product.

• New Class A product continues to outperform, while older, lessrenovated buildings are offering concessions to remain competitive.

• Q4 closed with positive momentum, with approximately 289,000 SF of annual net absorption and reinforcing steady tenant demand.

• Renovated, well-located Class B assets are capturing cost-conscious tenants seeking alternatives to pricing for Class A product.

• Workplace attendance improved throughout the year, with hybrid work models increasingly driving demand toward centrally located, amenity-rich office environments.

• New deliveries remain concentrated in suburban and mixed-use environments, including Nexton and select N. Charleston projects.

• Supported by 1.7% year-over-year job growth and continued population inflows, Charleston enters 2026 positioned for continued growth supported by strong market fundamentals.