He noted that although housing costs in Charleston are high compared to most other areas in South Carolina, they are affordable compared to many metropolitan areas and the quality of life in the Lowcountry is attractive. .
He also pointed out that the region’s workforce is strong and well-educated.
“People want to gather in a place where they can educate students,” Clancy said. “In Charleston, we have the ability to make that case.”
Mr Clancy added that the financial industry had not fully recovered from the spring scare sparked by the collapse of several high-profile banks, and credit, particularly in the office sector, would become even more difficult.
Still, he noted that borrowing continues in the commercial real estate market, but at about half the pace of last year.
cubicle command
The office market has been the most stressed, with the delinquency rate for commercial mortgage-backed securities more than doubling from less than 2% in December to about 5.5% nine months later.
Office vacancy rates in the Charleston area average just under 12 percent, based on the July-September Comprehensive Local Market Report released by commercial real estate firms Avison Young, Colliers, Lee & Associates.
The latter company said it expects office occupancy to rise in 2024 as more employers require employees to come into the office more frequently. Avison-Young echoed the move to a hybrid format next year.
Colliers predicts vacancies will level off by the first quarter of next year, citing modern working environments and accessibility as drivers for the office market.
Lee Allen, executive managing director of commercial real estate firm JLL in Charleston, said the local office sector will never be overbuilt and that newer, more creative offerings are less risky. Stated.
“What we’ve seen in the market is a flight to quality,” Allen said.
Companies and other employers looking to bring employees back to the office two to three days a week want to improve the employee experience with a top-notch work environment to prevent top talent from jumping ship. .