IN THE NEWS

Google has confirmed plans to construct a $510 million data center at the Pine Hill Business Campus in Dorchester County, marking its second facility in the Charleston region. The project, shrouded in secrecy under aliases like Project Evergreen and Gannett Enterprises LLC, has received historic tax breaks from Dorchester County and a discounted electricity deal from Dominion Energy. While details regarding construction commencement and job creation remain undisclosed, Google's acquisition of additional land hints at potential future expansions. Elected officials anticipate significant revenue generation & data centers' minimal workforce impact on traffic and services compared to residential properties.

For more information 
https://postandcourier.com

 PAUL'S MARKET PHILOSOPHY

I track all multifamily properties within a 48.4 mile radius of Charleston, SC. Before I jump into the specific market data, I’d like to take a moment to educate everyone on the Charleston Metro Area:

Demographic Information

The Charleston Metro Area has demonstrated steady population and wage growth since 2018, indicative of a robust economy. However, the prevailing data point of the current housing ratio suggests a tightening housing market expected to intensify by 2028, leading to heightened rental rates and housing competition.

This trend holds significance for both current and prospective property owners in Charleston. Existing owners can anticipate property value appreciation and increased rental income potential. Opportunistic investors could find possibilities in real estate ventures, capitalizing on the expected appreciation in property values.

Nonetheless, concerns about housing affordability may arise for lower-income individuals amidst rising housing costs. Thus, strategic planning is crucial for navigating the evolving real estate landscape in Charleston, considering both opportunities and challenges presented by the tightening housing market.

The Current Multifamily Real Estate Market

Sales Information

Market Overview

The multifamily property market has shown resilience and activity over the past year, with a total of 923 properties comprising over 5 units. Despite economic fluctuations, the market has demonstrated stability, reflected in the marginal increase in the average rent per square foot, which currently stands at $1.76 compared to $1.75 recorded a year ago. However, there has been a slight uptick in the average vacancy rate, rising to 9.9% from 9.18% previously. This indicates a nuanced landscape where demand for multifamily units persists, with some fluctuations in occupancy levels.

Sales Analysis

In terms of sales, there were 43 properties sold within the past 12 months, indicating ongoing market activity. Additionally, 21 properties were publicly marketed for sale, with 3 pending transactions and 18 still available. The average price per door was $208,285, with an average price per bedroom of $127,417, suggesting a diverse range of property sizes and valuations within the market. Properties that were sold had an average rent per square foot of $1.41, coupled with a higher vacancy rate at 18%. The average CAP rate across all sales was 6.2%, with a spread ranging from 4.8% to 7.8%.

Market Projections and Trends

Properties took an average of 4 months to sell, indicating a relatively efficient turnover within the market. Furthermore, there is a 100% probability of properties selling within 18 months.

Charleston- a market of Resilience

As a market enthusiast, I focus on tracking multifamily properties within a 48.4 mile radius of Charleston, SC. Charleston's demographic data highlights steady population and wage growth since 2018, but the tightening housing market, with an increasing housing ratio, signals heightened rental rates and competition by 2028, affecting both current and prospective property owners. While existing owners may see benefits like property value appreciation, strategic planning is essential for navigating the evolving real estate landscape, considering potential challenges in housing affordability for lower-income individuals.

Join me next week where I’ll discuss Charleston’s 5 year outlook!

NEW DEALS

As of this week there have been no new listing, no contingent, nor closed properties.

The below list contains every single multifamily property (5+ units) being publicly marketed in Charleston that we have compiled from LoopNet, Crexi, Costar, and 2 different multiple listing services.

Should any of these properties interest you, please do not hesitate to reach out to me directly. I would be more than happy to provide you with the additional information I have on file.