market overview - greysteel.com · spotlight on charleston, sc august 2020 market overview average...
TRANSCRIPT
© 2020 Greysteel / 1
SPOTLIGHT ON CHARLESTON, SCAUGUST 2020
Market Overview
Average Monthly Market Rent Per Unit
15,153units of positive net absorption since 2014
18,805units delivered since 2014 (4,850 units under construction as of Q3 2020)
2.6%average annual effective rent growth since 2014
$1,242average asking rent per unit as of Q3 2020
$0.95
$1.00
$1.05
$1.10
$1.15
$1.20
$1.25
$1.30
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2011
2012
2013
2014
2015
2016
2017
2018
2019 YTD
Effe
ctiv
e re
nt
/ SF
# o
f u
nit
s
Under Construction Deliveries Effective Rent/SF
Pipeline vs Effective Rental Rate PSF
$1,551
$1,260
$1,149
$1,268
3 BDR
2 BDR
1 BDR
Studio
$0 $500 $1,000 $1,500 $2,000
CHARLESTON, SC
34%One Bedroom
50%Two Bedroom
11%Three Bedroom
5%Studio
Unit Composition
Data courtesy of Greysteel Research, CoStar Realty Information, Inc. Survey includes multifamily properties greater than 10 units (53,616 units in aggregate). Fully affordable properties and the following asset types are excluded from the survey: senior, corporate, military, and student.
CHARLESTON, SC MSA
26
95
17
© 2020 Greysteel / 2
Charleston, SC MSA Overview AUGUST 2020
Located along the Central Coast of South Carolina, the Charleston–North Charleston MSA encompasses 3,163 square miles within Berkeley, Charleston, and Dorchester counties, commonly referred to as the Tri-County Area. Metro Charleston is the third largest metro in the state with more than 802,000 residents and is experiencing unprecedented population growth, business growth, and economic diversification. Home to over 138,000 people, the City of Charleston is the county seat and most populous city in Charleston County and the principal seaport of South Carolina.
The Charleston region is home to the 8th largest U.S. seaport (2019 rankings) in dollar value of cargo handled (Port of Charleston); one of the nation’s most impressive medical hubs (Medical University Of South Carolina, Roper St. Francis Healthcare, and Trident Health System); a multi‐billion-dollar tourism industry (7.2 million visitors, spending $8 billion); an established base of national and international manufacturers (Boeing, Bosch, Mercedes-Benz, and Volvo); and a large military presence (Joint Base Charleston). In addition, local residents can enjoy a lifestyle that strikes the perfect balance between work and play, with a warm climate, culture, food, attractive cost of living, miles of beaches, and diverse housing options.
No. 1 “City in the U.S.” (Travel & Leisure)No. 1 “Small U.S. City” (Condé Nast Traveler Readers)No. 1 “Most Entry‐Level Jobs” (WalletHub)No. 3 “Best States in the U.S. To Do Business” (Chief Executive)No. 4 “America’s Biggest Boomtowns” (MagnifyMoney)No. 5 “One‐Year High‐Tech GDP Growth” (The Milken Institute)No. 8 “Best Mid‐Size U.S. Metros for Jobs” (Forbes)No. 9 “Fastest Growing Mid-Size Metros in the Nation” (U.S. Bureau of Labor Statistics)
Joint Base Charleston
• Maintains $7.5 billion in base property and capital assets spanning three seaports, two civilian-military airfields, 39 miles of rail, and 22 miles of coastline totaling almost 24,000 acres
• The largest employer in the Charleston region with an estimated 22,000 employees, generating an economic impact of $10.6 billion annually
Morrison Yard
• Isle of Palms-based Woodfield Development is currently under construction of a 277,500-square-foot mixed-use project located at 838 Morrison Drive in Downtown Charleston
• Slated for completion in 2023, the development will feature 380 Class A multifamily units, as well as retail, restaurant, and office space
The Boeing Company
• Home to Boeing’s 141-acre 787 Dreamliner final manufacturing, assembly, and delivery facility
• Employs nearly 7,000 individuals, making it the largest private employer in the metro and one of the largest employers in the state
Charleston Trade Center
• The 750-acre master planned business park located in Summerville, SC, will have two phases of development encompassing approximately 8.0 million square feet
• Phase I, will encompass approximately 2.7 million square feet of Class A state-of-the-art distribution and manufacturing facilities
Medical University of South Carolina (MUSC)
• A 700-bed medical center, which educates and trains more than 3,000 students and 700 residents in six colleges, and features a Level I trauma center, a nationally recognized children’s hospital, the Hollings Cancer Center, Institute of Psychiatry, and South Carolina’s only transplant center
• Generating an annual economic impact of nearly $4 billion, MUSC is the largest non-federal employer in the metro with 16,000 medical professionals, faculty members, and support staff
Morrison Yard Office
• Charleston-based Origin Development Partners is under construction of a 240,000-square-foot, 12-story, Class A office building located in Downtown Charleston
• Slated for completion in 2022, the development will also feature a wetlands and hardscape plaza, a rooftop venue for events, and an adjoining 395 space parking deck
ECONOMIC HIGHLIGHTS
DEVELOPMENTS
© 2020 Greysteel / 3
Charleston, South Carolina AUGUST 2020
*Sorted highest to lowest by per unit sales price
$0$100$200$300$400$500$600$700$800$900
$1,000
2011
2012
2013
2014
2015
2016
2017
2018
2019 YTD
Mill
ion
s
$25
$45
$65
$85
$105
$125
$145
$0
$25,000
$50,000
$75,000
$100,000
$125,000
$150,000
2011
2012
2013
2014
2015
2016
2017
2018
2019 YTD
Average Price Per Unit Average Price Per Bldg SF
PROPERTY CITY SALE DATE CLASS SALE PRICE PRICE / UNIT UNITS
Cainhoy Pointe Charleston Nov-19 B $24,300,000 $216,964 112
The Charthouse on James Island Charleston Jul-20 B $8,500,000 $177,083 48
The Passage Summerville Nov-19 A $42,500,000 $177,083 240
Summer Wind Summerville Jan-20 B $46,000,000 $172,284 267
Atlantic on the Boulevard North Charleston Mar-20 A $46,700,000 $166,785 280
Atlantic on the Avenue North Charleston Apr-20 B $32,300,000 $159,900 202
Ingleside Apartments Charleston Oct-19 B $47,250,000 $155,427 304
Bryant at Summerville Summerville Feb-20 B $33,900,000 $146,120 232
Cypress River Ladson Apr-20 B $39,000,000 $139,285 280
Greenwood at Ashley River North Charleston Jan-20 B $29,650,000 $105,892 280
Summer Square Summerville Oct-19 C $1,550,000 $77,500 20
Oakbrook Ladson Feb-20 C $750,000 $75,000 10
Hyde Avenue Apartments North Charleston Dec-19 B $1,030,000 $73,571 14
Country Club Summerville Mar-20 C $2,236,000 $69,875 32
Boone West Summerville Jan-20 C $3,850,000 $62,096 62
Hampton West Charleston Apr-20 C $1,850,000 $45,121 41
RECENT TRANSACTIONS
Price Per Unit vs Price Per SFSales Volume
© 2020 Greysteel / 4
SCGreysteel | 525 N. Tryon Street | Suite 1600 | Charlotte, NC 28202
704.909.7100 | [email protected] | www.greysteel.com
SC License 23395
Broker in Charge | Ari Firoozabadi | 115651
For more information or to inquire about Greysteel, please contact Ari Firoozabadi, President & CEO | [email protected] | 202.417.3873
Offices Nationwide | License Information and Online Disclosures
© 2020 Greysteel
SALESMICHAEL HEHIR HAYDEN DAVISDirector | Investment [email protected] 98977
Associate | Investment [email protected] 314691
Nicole CapobiancoVice President of Transaction Services
Keeley ByerLead Research Analyst
Yassi GhashghaiVice President of Corporate Services
Brett BurkhartLead Research Analyst
Madison WellsSenior Transaction Coordinator
Kris FosterResearch Analyst
Sarah CarverSenior Transaction Coordinator
Kelsey BrendelSenior Designer
CAPITAL MARKETS
TRANSACTION SERVICES
DANIEL HARTNETT FISHER WELLSSenior Director | Capital [email protected]
Senior Associate | Capital [email protected]