Daniel Island offices roughly 80 percent full
Nearly 80 percent of available office space on Daniel Island is currently occupied, according to a June 2009 report prepared by Anchor Commercial on the commercial real estate market. On balance, Daniel Island’s occupancy rate for commercial property – office, retail and warehouse/industrial – is on par with the Charleston region at large (please see accompanying chart). Specifically:
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Office space– occupancy rates range from downtown Charleston’s high mark of 93% to North Charleston’s 75%.
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Retail space– occupancy rates range from downtown Charleston’s high mark of 95% to Berkeley’s 85%.
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Warehouse/industrialspace – occupancy rates range from downtown Charleston’s high mark of 92% to Summerville’s 78%.
Other key findings:
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Office space– Daniel Island’s rental rates for office space are $16.89NNN,* lower than average rates in downtown ($20.06 NNN), on a par with rates in Mt. Pleasant ($17.00NNN), and higher than rates in both North Charleston $13.33NNN) and West of the Ashley ($15.17NNN).
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Retail space– Rental rates "East of the Cooper," including Daniel Island and Mt. Pleasant, average $18NNN, far lower than downtown ($28NNN), and $4-$5 higher than comparable rates West of the Ashley, in Summerville, North Charleston and Berkeley.
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Warehouse/industrialspace – Rental rates "East of the Cooper," including Daniel Island and Mt. Pleasant, average $6.90NNN, and represent the highest in the area. The lowest area rental rate for warehouse/industrial space is $4.24NNN, in Berkeley.
In their report, Anchor Commercial projected that, in the next six months, "there will be a steady flow of opportunities . . . for buyers to capitalize on distressed or motivated sellers." The report continues, "For those with cash and a willingness to get back in the game, there will be an excellent opportunity to purchase for pennies on the dollar and position themselves for long term success."
Anchor Commercial said that "in an effort to attract tenants, landlords are lowering asking prices and offering generous concessions unlike any in recent memory." They concluded, "Leasing should lead the charge in recovery in 2010 with years of pent up space needs. Sales and development will be slow to catch up with all sectors, reflecting a very slow recovery in sales and lease prices."
* NNN = A triple net lease (Net-Net-Net or NNN). A triple net lease is a lease agreement on a property where the tenant or lessee agrees to pay all real estate taxes, building insurance, and maintenance (the three ‘Nets’) on the property in addition to any normal fees that are expected under the agreement (rent, etc.). In such a lease, the tenant or lessee is
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| The above map depicts retail space vacancy but does not break Daniel Island figures out from Mt. Pleasant figures. The Office space map on the opposite page provides a break out for both Mt. Pleasant and Daniel Island.
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responsible for all costs associated with repairs or replacement of the structural building elements of the property.
