South Carolina Retail Market Report
Greenville Market Overview
Greenville is South Carolina’s largest consolidated metro area and a prominent manufacturing hub. Major industries include automotive and machinery manufacturing, with notable companies like BMW, Michelin, and Bosch. Greenville is known for downtown redevelopment, with recently delivered developments falling into two main categories: mixed-use urban properties and suburban neighborhood centers. Strong population growth and a cautious construction pipeline are expected to keep vacancies stable and maintain positive rent growth for Greenville-area retailers in the near term.
Greenville Market Performance
Neighborhood center properties have experienced the strongest rent gains, with an annual increase of 8%.
The average rent in the Greenville retail market is $17.48 per square foot, making it more expensive than many South Carolina markets. Overall, retail rents have risen by 5.6% over the past year, surpassing the national average growth rate, which is around 3% to 3.5%. Retail vacancies in Greenville are approximately 3.3%, declining by 0.3% in the last 12 months. There was approximately 294,000 square feet of retail space delivered in the past year, and 122,095 square feet are currently on the way. The 12-month sales volume was $330 million, with properties selling at an average of $151 per square foot.
By The Numbers | Last 12 Months | Source: CoStar Group
- Vacancy Rate: 3.2%
- Deliveries SF: 134K
- Net Absorption SF: 491K
- Rent Growth: 4.6%
- Sales Volume: $225M
- Cap Rate: 8.1%
Columbia Market Overview
Columbia is South Carolina’s capital, a university town, and home to a large federal military installation. Government employment plays a significant role in the Columbia metro’s economy, with more than one in five employees working in government, which is a 40% higher concentration than the national average. Malls and neighborhood centers have seen substantial rental gains, with growth rates at 6.8% and 5.5%, respectively. Despite the slowdown in construction, low vacancies, healthy rent growth, and positive absorption indicate a very tight retail sector in the near term.
Columbia Market Performance
Malls and power centers in the area command higher rents, with malls asking about $25 per square foot and power centers asking about $22 per square foot.
Rent growth in the Columbia retail market has increased by around 4.6% year-over-year (YOY), above historic levels, to a current rental rate of $16.86. Columbia remains more affordable than surrounding markets like Charleston and Charlotte as of late 2023. The market-wide vacancy is at 3.2%, declining by 0.6% in the past 12 months. There is currently 46,351 square feet under construction, mainly concentrated in high-buying-power areas, including Lexington, St. Andrews, Northeast Columbia submarkets, and West Columbia. Approximately $225 million worth of deals have occurred in the past 12 months, with recent deals concentrated in the region northeast of the market’s core and suburban areas with high buying power.
By The Numbers | Last 12 Months | Source: CoStar Group
- Vacancy Rate: 3.2%
- Deliveries SF: 134K
- Net Absorption SF: 491K
- Rent Growth: 4.6%
- Sales Volume: $225M
- Cap Rate: 8.1%
Charleston Market Overview
Charleston’s port access, coastal location, and relative affordability continue to attract retailers and new residents. The market has become a major import and export center due to growth in the Port of Charleston. Regional and national tourism remains strong, and Charleston’s population growth outpaces the national benchmark. The majority of new development in Charleston has been either less than 20,000 square feet or part of a larger mixed-use project. Despite the decline in sales activity, Charleston remains one of the fastest-growing areas in South Carolina in both population and job growth.
Charleston Market Performance
Downtown Charleston has significantly higher average rents in the market, averaging more than $43 per square foot.
Average asking rents in Charleston are approximately $24.58 per square foot, making it the most expensive retail markets in the state. Factors contributing to this include continued coastal tourism, expensive land in the historically preserved downtown peninsula, and population growth. Overall, rents in Charleston have experienced a 4.5% YOY increase. Vacancies have declined by 0.2% in the past 12 months to the current rate of 3%. Approximately 645,583 square feet is underway across the market, with just under half of the space set to deliver at the beginning of 2024. About 70% of all retail construction is pre-leased. Retail and development is also chasing the suburbs of Charleston — North Charleston, Summerville, and Goose Creek. About $253 million in retail transactions occurred over the past 12 months, with a large majority of the total sales volume involving out-of-state buyers.
By The Numbers | Last 12 Months | Source: CoStar Group
- Vacancy Rate: 3%
- Deliveries SF: 224K
- Net Absorption SF: 246K
- Rent Growth: 4.5%
- Sales Volume: $253M
- Cap Rate: 6.5%
