cbc market news

RETAIL
INDUSTRIAL
CBCOFFICE
MARKET
NEWS
MULTI-FAMILY
Atlantic
Issue: October 2013
RECENT
TRANSACATIONS

Tradd Varner of CBC Atlantic
International, Inc. represented
the Tenant, Clemson Sports
Medicine & Rehabilitation Inc., in
the lease execution for a 3,200 SF
retail space at 1909 Hwy 17 N.
The Landlord, US Retail Income
Fund, was represented by Elyse
Chubb of Colliers International.

Tradd Varner of CBC Atlantic
International, Inc. represented
the Landlord, Wilson Real
Properties and the Tenant, Indigo
East Gallery in the lease
execution of 600 SF retail suite
located at 10125 Dorchester Rd.

Tradd Varner of CBC Atlantic
International, Inc. represented
the Tenant, Ameriprise – York
and Associates in the lease
transaction of 1,385 SF office
space located at 130-1D River
Landing Rd. The Landlord, Brooke
Brooke, LLC was represented by
Mark Erickson of Thalhimer.

Lea B. Givens, Jr. of Coldwell
Banker Commercial Atlantic
International, Inc. represented
the seller, Robert L. Papa, in the
sale of 7479 Parkers Ferry Road.
The property consisted of 10.56
A WORD FROM OUR PRESIDENT, BRENT CASE
The first quarter of 2014 is proving to be an exciting time at CBC. We ended the
year as one of our personal best last year and the trend is continuing. The market
has been solid, all of our agents are busy, and the morale is high. In addition,
we’ve added two new members to our team. Kristin Krause comes to us with an
extensive background in retail. She previously worked with Avison and Young as
well as our CBC office in Malibu, California. Her focus is on the retail properties on
the peninsula. She sits on the City of Charleston design review board and brings a
wealth of marketing experience to our company from her previous business she
owned in LA. We are also proud to add Ben Poblano to our family. Ben has a Real
Estate degree from Temple University and also previously worked at Avison and
Young. He will be an industrial and hotel specialist. Lastly, we added Hannah Corri
as Executive Assistant. She is a recent graduate of College of Charleston with dual
degrees in Management. She is also a licensed agent and can assist both clients
and agents with whatever their needs may be.
I would like to congratulate Rachel Riggs, our Property Manager, for receiving the
Employee of the Year award. She did a great job turning that division around and
creating new processes that make us much more efficient and effective. With her
help we have been able to offer many more services to our clients at no
additional cost. Also earning a big congratulation was Kip Bowman. He was our
top performing agent outside of ownership and deserves some special
recognition.
With our new team in place 2014 looks like another banner year for us all!
acres of recreational land .
LOCAL KNOWLEDGE, GLOBAL PERSPECTIVE.
FEATURED
PROPERTIES
2209 Savannah Hwy
Gas Station/Convenience Store
$1,450,000
MLS: 1407201
Contact: Tradd Varner
3545 Mary Ader Dr.
9,942 SF Mixed Use Building
$1,550,000
MLS: 1316195
Contact: Ben Poblano
1296 Yeaman’s Hall Rd.
Grocer Anchored Shopping Center
$4,000,000
MLS: 1323353
Contact: Brent Case
725 Johnnie Dodds Blvd.
8,685 SF Turn Key Restaurant
$2,950,000
MLS: 1319049
Contact: Brent Case
INDUSTRIAL
The first quarter of 2014 continued to build on the growth we experienced during the
previous year. Vacancy rates remain under 10% for the fifth straight quarter since the
start of 2013 and as absorption continues, asking rental rates continue to steadily rise.
The Charleston market is seeing buildings that sat vacant for years now being filled
with either existing companies looking for more space or startups leasing their first
locations. Moreover, industrial land costs are rising rapidly and parcels that have been
available for years are selling to both users and investors. The optimism created by
the expansion of Boeing, The Port of Charleston, and Charleston International Airport
continue to be the driving forces within the region and will be for the foreseeable
future. These factors create opportunities for both large and small industrial growth
to sustain the emerging market demand.
RETAIL
Grocers, Retailers and Investors will be making their mark in 2014. For starters, Piggly
Wiggly sold 29 of its stores throughout South Carolina. Harris Teeter will transition 7
of those stores and Bi-Lo the remaining 22. Another large grocer, Publix, is expanding
new locations within the state while Walmart is opening more slightly smaller
“Neighborhood Markets”. Grocery stores seem to be fighting it out to make a lasting
impression on the rapidly growing market.
Overall, traditional retail developments are on the rise. Bass Pro shops announced
opening their 2 million SF mixed use development in 2015. Many Retailers looking to
expand in South Carolina are sticking to infill locations. Profitable retailers are taking
the next step to open second locations, looking for established retail centers that
have the demographics and name recognition to promote expansion.
Investors see single tenant properties in strong demand. Cap rates for single tenant
retail markets dipped to the lowest level in the 4th quarter of 2013. With new
developments being announced on a regular basis it makes for a very competitive
retail environment. Lastly, financing is projected to hold strong for 2014.
Opportunities for financing acquisitions and new construction are becoming widely
available which will aide in the ability to facilitate more transactions.
According REIS the effective rental rates were down .3% for the year and .2% for the
quarter. Vacancy ended at 10.9% which was up 40 basis points for the period and
was unchanged year-over-year.
CRDA RANKINGS
AND RECOGNITION
www.crda.org

Charleston was voted the Top City
in the United States for the third
year in a row due to its amenities
and lifestyle attributes, according
to Conde Nast Traveler’s annual
Reader’s Choice survey.
Conde Nast Traveler November 2013

Charleston ranked #3 in the “small
cities” category of the “30 Best
Cities for Young Entrepreneurs” do
to its IT jobs availability high
growth rates and the Charelston
Digital Corridor.
Under30CEO.com March 2013

The Milken Institute ranked
Charleston 5th in the U.S. for hightech industry output over the past
five years, and 11th for economic
growth.
Milken’s Best Performing Cities Index
December 2013

Charleston took home travel &
Leisure’s top honor for favorite
North American City and City in the
world due to its inviting hotels,
excellent dining, and unique
historical attractions.
Travel & Leisure July 2013

Charleston made State Tech’s list
of the top twelve tech hubs in
America that are “nippin on Silicon
Valley’s heels” based on the city’s
ranking in the top 1-fastest
growing cities for software and
internet technology.
State Tech November 2013
OFFICE
The Charleston Office market has shown great improvement in the last 2 quarters.
Inventory is being absorbed at a significant rate, which has already begun new office
development. Sub-Markets such as Mt. Pleasant and the Centre Point area of North
Charleston continue to see the most activity as far as number of leasing transactions.
Following the global office trend, Charleston is no different; we are seeing a lot of
companies becoming more conservative with their square footage requirements.
Many tenants are needing less space to house the same number of workers.
According to MLS data nearly one third of all leasing transactions were suite sizes
between 1,000 – 2,000 square feet.
According to CMLS Data, office sales totaled $9,850,663 (11 transactions),
representing 61,684 square feet at an average of $159.7 per foot. During the same
period, a total of 279,807 square feet of office (120 transactions) were leased, up 50
% from the previous quarter in number of transactions and up 31% in square
footages absorbed.
MULTIFAMILY
The overall Charleston market is still very bullish on apartment development and will
be for the next few years, if not longer. Mount Pleasant has seen its rental rates
increase as new developments come on line. A few noteworthy properties seeing an
average of $1.50+ per square foot rental rates are the recently completed 325 unit
mixed use The Boulevard, the 270 unit River’s Walk, and the 252 unit Riviera at
Seaside. The Boulevard property just traded for $66.5 million dollars to The Boulevard
Corp., an entity of Chicago based Heitman Capital Management, proving that
Charleston has a strong national investor appetite.
Mount Pleasant is not the only sub-market seeing development. Cypress River
Apartments are currently under construction in Ladson next to the highly successful
304 unit Ingleside Plantation Apartments. Mead Westvaco and the Beach Co. have
also partnered to build the first residential aspect of the highly anticipated 4,500-acre
Nexton Development in Summerville. The community will be called The Parks at
Nexton.
All in all, Charleston multi-family as a whole has seen an uptick in rental rates and
occupancy rates, even with the new developments, and is trending to continue this
way for the future.
MARKET TRENDS
Reis’s data below is an analysis of the
impact of economic and demographic
trends. The data reflects regional and
local demands for commercial real
estate, developing multi-year
forecasts of rent growth, vacancy
rates, new construction, and
absorption.
Multi-Family
Vacancy:
Absorption:
Rental Rates:
Office
Vacancy:
Absorption:
Rental Rates:
Industrial
Vacancy:
Absorption:
Rental Rates:
Retail
Vacancy:
Absorption:
Rental Rates:
RESIDENTIAL DEVELOPMENTS
Momentum continues as 2013 ended with record home sales, a median price of
$206,530 and new construction on the rise. Meanwhile, the BCDCOG released the
Housing Needs Assessment report last month to provide direction to local jurisdictions
and interested stakeholders. The summary outlined a goal to increase affordable
housing in close proximity to employment centers with existing public infrastructure, a
plan consistent with national trends. As household sizes decrease, demand is greater
for urban housing located near amenities and public transportation.
Employment ties to affordable housing (less than 30 percent of income pays housing
expenses) and the ability to attract new industries and retain existing businesses
compared to other cities. Migration to regional outskirts for affordable housing
creates unintended sprawl, increased commuting costs, traffic congestion and public
infrastructure strain. As a result, we can expect emphasis on current zoning regulation
incentives and new policies to encourage lower priced housing, higher densities and
fewer auto-dependent communities.
PENINSULA
Each year, hundreds of thousands of tourist and locals from surrounding areas
embrace the Downtown Charleston Peninsula bringing new ideas, diverse talents, and
financial growth to our beautiful city. Professionals, students, and travelers fill our
historic downtown streets to meet the growing demand of what has become,
according to Conde Nast Travelers Magazine, one of the top 10 destinations in the
United States. Charleston’s world-class array of history, hospitality, and amenities
attract some of the most popular anchor retailers and national branded culinary
businesses in the country to open their doors here in the downtown Peninsula area.
Here are just a few of the new businesses that have opened their doors in the
downtown Peninsula in 2014. Many more businesses including hotels, retail shops,
and technology companies are slated to open in the months to come.
Charleston Distilling Company: 501 King Street, approx. 10,100 SF. www.charlestondistilling.com
H&M Clothing: 281 King Street approx. 21,000 SF www.hm.com
Warehouse Eatery: 45½ Spring Street approx. 2880 SF www.wearewarehouse.com
Lee Lee’s Hot Kitchen: 218 President Street approx. 2450 SF www.leeleeshotkitchen.com
NEW AGENT SPOTLIGHT
I was raised in Mexico City and Philadelphia then graduated from Temple University with a BA in
Real Estate. I chose my profession because it combines two of my great passions, people and
property. As a commercial broker my aim is to take away the burden of real estate from my
clients so they can focus on running their businesses. Whether it be by providing lease flexibility,
increasing cash flow, investment analysis, or anything else within the realm of commercial real
estate. I listen to my clients and use my expertise to address their needs.
Benjamin A. Poblano
Associate
(843) 566-5822
WELCOME!
[email protected]
For almost ten years, Kristen has earned tremendous respect among her real estate colleagues
and clients. She is known for her in depth knowledge of Retail and Real Estate Development. Her
dedication to accomplishing goals and commitment to meeting the needs of her clients as a
skilled contract negotiator and excellent communicator has built her success on such valued
attributes in the commercial estate industry. Kristen understands the importance of design, vision
finding and the right location to position your business for growth and the appreciation on your
investment.
Before entering the real estate profession, Kristen is a entrepreneur. She is co-founder of S&C
Foods/Garvey Nut and Candy/First Source, one for the largest wholesale gourmet confection
distribution companies in Southern California. Kristen and her family developed the downtown
Los Angeles based company and implemented store design and retail development to what now
services over 3800 retail stores.
Kristen Corri Krause
Kristen’s business and corporate knowledge and experience have provided the basis for her climb
to success in the real estate industry.
Broker, Realtor
(310) 699-2765
[email protected]
3506 W. Montague Ave.
Charleston, SC 29418
Kristen has actively engaged in local community service with City of Charleston DRB Design
Review Board and a volunteer for the BB&T Wine and Food Festival. She is a generous supporter
of JDRF and American Diabetes Association, and contributes both time and money to improve
children and teen awareness. Kristen resides in the French Quarter in historic Charleston.