Produced by: The Developers Council, Charleston Metro Chamber of Commerce January 2019
INTRODUCTION PURPOSE
Think of the Investment Opportunity Study as a mirror. By compiling demographic, economic and real estate data, along with information on the development approval process, we can see ourselves the way a prospective investor sees us. We are not holding up a mirror to admire our finer features or to scrutinize our flaws. Instead, we think a clear-eyed look at our core metrics will more clearly reflect our opportunities – opportunities to better leverage assets, to strengthen our policy climate and to streamline processes.
The purpose of the study is to establish a fact-based platform for collaborative partnerships with local governments on shared priorities. Local government’s own comprehensive plans are the basis for identifying those priorities. This study does not attempt to alter any local government’s goals or visions. Rather, through the study we hope to enhance policies and processes to make it more likely that established goals are met. When we see our communities as an investor sees them, we can better position ourselves to achieve whatever future we envision.
Data is the heart of this study because all savvy investors demand the data. 90% of the reported data comes from long-established, publicly available sources including the U.S. Census Bureau, Charleston Trident Association of Realtors, Avison Young and other sources. Where appropriate, we have relied upon survey data from design professionals of the Developers Council and the professional staffs of the various municipalities.
CONTENTS
This report is organized into two levels: regional and jurisdictional. The regional data and macro trends analysis captures the over-arching business climate which is the backdrop to any investment in the region. Data points for each jurisdiction allows us to focus on decision drivers for investments in a specific location.
INVESTMENT OPPORTUNITY STUDY: A PLATFORM FOR DATA-DRIVEN COLLABORATION CHARLESTON METRO CHAMBER OF COMMERCE : JANUARY 2019
How investors see our region matters because most of our collective goals and aspirations hinge on private investments. Independent capital decisions drive quality of life factors for everyone, including job and wage growth, housing types, retail and restaurant options. For local governments, private investments (or lack thereof) mean a growing tax base or a stagnate one.
PROCESS
REGIONAL TRENDS STRONG JOB GROWTH
CONTINUED POPULATION GROWTH
Over the past two decades, the Charleston Region has enjoyed incredible success diversifying its economy. Military and hospitality jobs that once dominated employment are now balanced with equal or larger employment bases in aerospace, automotive, logistics, software/IT and medical jobs. Conservative estimates project 35,000 additional new jobs over the next five years with 80% of those jobs in 10 high growth sectors.
The Charleston region’s population has experienced a long run of steady population growth. We’ve grown at roughly 2% per year since the 1970’s. Growth projections show neither surge nor slow down. Continuing at our projected pace, the region will top one million residents by 2030. POPULATION TRENDS / PROJECTION 1,200,000
2017 - 2022 JOB GROWTH Production
5,911 & Mechanical 4,444 Hospitality
Business
3,391 Operations Support
800,000 600,000 400,000 200,000 0
862 Education
2%
AVERAGE GROWTH PER YEAR SINCE THE 1970’s
0
1,129 Construction
3 20
Business
1,134 Management
5
2,089 Logistics
2 20
Personal
2,507 Services
0
2 20
6
1 20
0
1 20
0
0 20
0
9 19
0
8 19
0
7 19
2,535 Software & IT
Source: US Census, SC State Data Center
00
6,0
00
5,0
00
4,0
00
3,0
00
2,0
00
1,0
0
INVESTMENT OPPORTUNITY STUDY: A PLATFORM FOR DATA-DRIVEN COLLABORATION CHARLESTON METRO CHAMBER OF COMMERCE : JANUARY 2019
3,661 Medical
1,000,000
REGIONAL TRENDS ATTAINABLE HOUSING STRESS The cost and availability of housing have quickly become critical regional issues. Between 2010-2016, the median home sale price increased by 27% and rental rates increased by 49%, while average wages grew 12%. Nearly a third of homeowners are burdened by their mortgage and the average low-income resident spends 71% of their income on housing and transportation.
CONTINUED...
RESIDENTIAL BUILDING PERMITS ISSUED 11,000 Source: US Census 10,000 9,000 8,000
7,500
7,000
112,309 Total New Housing Units Needed Region-Wide Between 2015 and 2030
6,000 5,000
Nearly half of those homes should be priced for households earning $50,000 or less annually Meaning a sales price of $175,000 - $225,000 or an average monthly rent of roughly $1,200
3,000 2,000 1,000 0
'17
'16
'15
'14
'13
'12
'11
'10
'09
'08
'07
'06
'05
'04
'03
Inadequate supply of new housing to meet demand is a major driver of the rapid price escalation. While the region adds at least 7,500 new households annually, we have failed to permit that number in any year since 2006.
NEW HOUSING UNITS NEEDED PER YEAR TO KEEP UP WITH POPULATION GROWTH
INVESTMENT OPPORTUNITY STUDY: A PLATFORM FOR DATA-DRIVEN COLLABORATION CHARLESTON METRO CHAMBER OF COMMERCE : JANUARY 2019
4,000
REGIONAL TRENDS SHIFTING POPULATION AND EMPLOYMENT CENTERS Population and employment have grown in most corners of the region, but the growth rates are uneven. Consider that all of the top ten zip codes for jobs in 2005 remain in the top ten in 2015. But their order has changed and their growth rates over that decade range from a 106% increase in the 29418 zip in Northwest North Charleston to a 19% decrease in the lower Peninsula.
CONTINUED...
A glance at our most populous and fastest growing zip codes shows that settlement patterns are outside the legacy “core” of the region and don’t coincide with the largest and fastest growing employment zip codes. The top three largest zip codes by population are all North/West of Ashley Phosphate Road. Meanwhile, the population in some large zip codes nearer to the legacy core of the region (Inner West Ashley 29407 for example) is actually falling.
AREA
JOBS 2005
JOBS 2015
% CHANGE
ZIP
AREA
POP 2006
POP 2015
% CHANGE
29406
North Charleston
32,208
37,282
15.8%
29483
Summerville
53,270
70,975
33.2%
29403
Upper Peninsula
18,719
28,598
52.8%
29445
Goose Creek
50,637
58,048
14.6%
29418
North Charleston
13,805
28,413
105.8%
29485
Summerville
32,854
50,574
53.9%
29464
Mount Pleasant
21,736
26,959
24.0%
29464
Inner Mount Pleasant
42,829
47,589
11.1%
29401
Lower Peninsula
31,177
25,375
-18.6%
29412
James Island
33,791
37,908
12.2%
29407
West Ashley
19,587
24,261
23.9%
29414
Outer West Ashley
26,885
37,210
38.4%
29405
North Charleston
23,344
23,802
2.0%
29407
Inner West Ashley
36,091
33,884
-6.1%
29483
Summerville
15,274
20,789
36.1%
29461
Moncks Corner
24,908
33,320
33.8%
29461
Moncks Corner
11,750
11,122
-5.3%
29466
Outer Mount Pleasant
21,803
32,193
47.7%
29445
Goose Creek
11,063
10,881
-1.6%
29406
Hanahan / North Charleston
39,689
30,783
-22.4%
All Other Zips
All Other Areas
57,107
81,137
42.1%
29456
Ladson
19,394
30,730
58.5%
29420
North Charleston
16,425
23,159
41.0%
INVESTMENT OPPORTUNITY STUDY: A PLATFORM FOR DATA-DRIVEN COLLABORATION CHARLESTON METRO CHAMBER OF COMMERCE : JANUARY 2019
ZIP
REGIONAL TRENDS
CONTINUED...
RISING TRAFFIC CONGESTION According to a Congestion Management report issued by CHATS in November 2018, the average commute times regionwide have risen only slightly from 2000 to 2014. But commuters in some of the most congested corridors routinely spend up to 25% more time on the road due to peak hour traffic. Perhaps more importantly, over half of commuters say they are unsatisfied or very unsatisfied with their commute times and more than two thirds surveyed believe traffic and congestion is the region’s biggest problem.
LEVEL OF SERVICE (LOS) RATING FROM 2015 -B ASED ON VOLUME TO CAPACITY RATIO
DORCHESTER
BERKELEY
UNSATISFIED OR VERY UNSATISFIED WITH TIME IT TAKES TO GET TO WORK
CHARLESTON
68%
TRAFFIC AND CONGESTION IS THE #1 PROBLEM
Meanwhile, without additional new capacity projects beyond what is already planned, traffic models project that by 2040 nearly 70% of road miles in the region will be nearing or over capacity with unstable traffic flow.
LOS A
LOS D
free flow
approaching unstable flow
LOS B
LOS E
reasonably free flow
unstable flow / at capacity
LOS C
LOS F
stable flow
breakdown flow
INVESTMENT OPPORTUNITY STUDY: A PLATFORM FOR DATA-DRIVEN COLLABORATION CHARLESTON METRO CHAMBER OF COMMERCE : JANUARY 2019
51%
15,700 1,144
AREA OVERVIEW
7,351
DEMOGRAPHIC Population Land Area: Square Mile Median Age Workforce Participation Median Household Income Poverty Rate
42,039 40.09 31.3 60.9% $61,542 10.6%
HOUSING DATA Households Median Home Sale Price Goose Creek / Monks Corner Median Mortgage Cost Median Gross Rent
13,741 $240,803 $1,270 $1,114
INDUSTRIAL OFFICE
Outlying Berkeley County Inventory Vacancy Rate Asking Rent North Suburbs Inventory Vacancy Rate
COMMUTE PATTERNS In Area Laborforce Efficiency
6.8%
GOOSE CREEK MUNICIPAL REPORT
RETAIL
Asking Rent Goose Creek Inventory Vacancy Rate Asking Rent
20,280,912 sq ft 13.5% $4.72 1,677,326 sq ft 4.1% $26.47 1,051,633 sq ft 2.3% $15.19
INVESTMENT OPPORTUNITY STUDY: A PLATFORM FOR DATA-DRIVEN COLLABORATION CHARLESTON METRO CHAMBER OF COMMERCE : JANUARY 2019
* See Submarket Maps section
COMMERCIAL REAL ESTATE
• Median home prices are very affordable, particularly relative to the median household incomes of Goose Creek residents • Demographic advantages include median age and poverty rate below the national and regional averages •T he retail market has a vacancy rate significantly lower than the region’s and asking rents that are very competitive with the region’s rate
DEVELOPMENT TIMELINE PROJECTIONS
SINGLE FAMILY
HIGHLIGHTS
CONSULTANT LOW
12
GOVERNMENT
12 - 24
CONSULTANT HIGH
28
• In-area labor force efficiency is the region’s lowest and creates greater transportation congestion for the region
0
10
20
30
40
50
60
70
80
WEEKS
PARTNERSHIP PRIORITIES • Promote increased adoption of development process best practices including electronic filing and permit tracking
MULTI-FAMILY
• Development timelines and relative processing costs are competitive CONSULTANT LOW
12 12 - 24
GOVERNMENT CONSULTANT HIGH
29 0
• Identify and advocate for infrastructure enhancements and policy changes to promote creation of a “City Center” for Goose Creek
10
20
30
40
50
60
70
80
WEEKS
• Explore transit-oriented development opportunities related to Lowcountry Rapid Transit • Support attainable housing best practices
COMMERCIAL
• Identify opportunities for growth of new employment centers and redevelopment of existing commercial space CONSULTANT LOW
12 4-8
GOVERNMENT CONSULTANT HIGH
28 0
GOOSE CREEK
10
20
30
40
50
60
70
80
WEEKS
16,617 2,524
AREA OVERVIEW
14,433
DEMOGRAPHIC Population Land Area: Square Mile Median Age Workforce Participation Median Household Income Poverty Rate
49,323 18.05 35.6 65.2% $56,962 10.5%
HOUSING DATA Households Median Home Sale Price Greater Summerville Median Mortgage Cost Median Gross Rent
17,223 $238,995 $1,449 $1,027
INDUSTRIAL OFFICE
Dorchester County Inventory Vacancy Rate Asking Rent North Suburbs Inventory Vacancy Rate
COMMUTE PATTERNS In Area Laborforce Efficiency
13.2%
SUMMERVILLE MUNICIPAL REPORT
RETAIL
Asking Rent Summerville / Ladson Inventory Vacancy Rate Asking Rent
7,624,431 sq ft 2.1% $5.53 1,677,326 sq ft 4.1% $26.47 3,579,980 sq ft 2.4% $16.72
INVESTMENT OPPORTUNITY STUDY: A PLATFORM FOR DATA-DRIVEN COLLABORATION CHARLESTON METRO CHAMBER OF COMMERCE : JANUARY 2019
* See Submarket Maps section
COMMERCIAL REAL ESTATE
HIGHLIGHTS
DEVELOPMENT TIMELINE PROJECTIONS
• Demographic advantages include median age and poverty rate below the national and regional averages • Office, retail and industrial markets are strong, with significantly lower vacancy rates than the region’s average • In-area labor force efficiency is low and creates greater transportation congestion for the region
SINGLE FAMILY
• Median home prices are very affordable compared with the region CONSULTANT LOW
CONSULTANT HIGH
• Examine and promote transit-oriented development opportunities related to Lowcountry Rapid Transit
28 0
10
20
30
40
50
60
70
80
WEEKS
MULTI-FAMILY
• Explore policy and market changes that could lead to more Class A office development
24 - 52
GOVERNMENT
• Development timelines and costs are competitive for the region
PARTNERSHIP PRIORITIES
16
• Ensure regional business community input in the 2019 Comprehensive Plan update
CONSULTANT LOW
16 28 - 32
GOVERNMENT CONSULTANT HIGH
42 0
10
20
30
40
50
60
70
• Evaluate potential impact of proposed Unified Development Ordinance
80
WEEKS
COMMERCIAL
• S upport completion of the Berlin G. Myers Parkway Phase 3 and other vital transportation infrastructure priorities CONSULTANT LOW
16 24
GOVERNMENT CONSULTANT HIGH
28 0
SUMMERVILLE
10
20
30
40
50
60
70
80
WEEKS
8,224 450
AREA OVERVIEW
4,689
DEMOGRAPHIC Population Land Area: Square Mile Median Age Workforce Participation Median Household Income Poverty Rate
24,885 10.7 35.1 69% $61,221 10.6%
HOUSING DATA Households Median Home Sale Price Greater Hanahan Median Mortgage Cost Median Gross Rent
8,104 $250,400 $1,511 $977
INDUSTRIAL OFFICE
Outlying Berkeley County Inventory Vacancy Rate Asking Rent North Charleston Inventory Vacancy Rate
COMMUTE PATTERNS In Area Laborforce Efficiency
5.2%
HANAHAN
MUNICIPAL REPORT
RETAIL
Asking Rent North Charleston / Hanahan Inventory Vacancy Rate Asking Rent
20,280,912 sq ft 13.5% $4.72 7,366,132 sq ft 9.2% $30.51 5,709,257 sq ft 5.7% $11.73
INVESTMENT OPPORTUNITY STUDY: A PLATFORM FOR DATA-DRIVEN COLLABORATION CHARLESTON METRO CHAMBER OF COMMERCE : JANUARY 2019
* See Submarket Maps section
COMMERCIAL REAL ESTATE
HIGHLIGHTS
DEVELOPMENT TIMELINE PROJECTIONS
• Demographic advantages include median age, workforce participation rate and poverty rate • Median household income is higher than the region • Median home prices and rent are relatively affordable for the regional (and Hanahan) median income
SINGLE FAMILY
• In-area labor force efficiency is relatively low and compounds traffic problems
4
GOVERNMENT
• Development timelines are relatively competitive
0
10
20
30
40
50
60
70
80
PARTNERSHIP PRIORITIES • Identify opportunities for growth of new employment centers and Town Center • Support attainable housing best practices and reinvestment and redevelopment of aging housing stock
MULTI-FAMILY
WEEKS
6
GOVERNMENT
• Collaboration with business community
0
• Alignment, coordination, and cooperation with Goose Creek and North Charleston
10
20
30
40
50
60
70
80
WEEKS
• Support infrastructure improvements: I-526/26, North Rhett Avenue, Yeamans Hall Road, Foster Creek Road • Explore relationship with Military • Potential branding opportunity support
COMMERCIAL
• Maximize LCRT potential (all 4 sites)
6
GOVERNMENT
0
HANAHAN
10
20
30
40
50
60
70
80
WEEKS
AREA OVERVIEW
22,058
DEMOGRAPHIC Population Land Area: Square Mile Median Age Workforce Participation Median Household Income Poverty Rate
84,170 45.08 39.3 68.6% $83,490 6.4%
HOUSING DATA
25,653
Households Median Home Sale Price Upper Mount Pleasant
8,422
Lower Mount Pleasant Median Mortgage Cost Median Gross Rent
31,018 $569,271 $520,000 $1,996 $1,403
24.7%
INDUSTRIAL OFFICE
Vacancy Rate Asking Rent East Suburbs Inventory Vacancy Rate Asking Rent
East Islands / Mount Pleasant Inventory
RETAIL
* See Submarket Maps section
COMMUTE PATTERNS In Area Laborforce Efficiency
East Islands / Mount Pleasant Inventory
Vacancy Rate Asking Rent
MOUNT PLEASANT MUNICIPAL REPORT
1,036,041 sq ft 1.4% $12.08 4,163,813 sq ft 8.5% $36.80 4,070,944 sq ft 2.6% $25.24
INVESTMENT OPPORTUNITY STUDY: A PLATFORM FOR DATA-DRIVEN COLLABORATION CHARLESTON METRO CHAMBER OF COMMERCE : JANUARY 2019
COMMERCIAL REAL ESTATE
HIGHLIGHTS
DEVELOPMENT TIMELINE PROJECTIONS
• Demographic advantages include high workforce participation, high median household income and low poverty rate • Asking rents are higher than the region’s average, the vacancy rate for industrial space is a fraction of the region’s rate • Relatively low in-area labor force efficiency contributes to regional traffic congestion
SINGLE FAMILY
• Median home prices are not affordable for region’s median household incomes CONSULTANT LOW
20 8
GOVERNMENT CONSULTANT HIGH
35 0
10
20
30
40
50
60
70
• Development costs are not competitive in the region
WEEKS
• Assist with the exploration, study and expansion of mass transit facilities • Explore development process improvement opportunities
MULTI-FAMILY
• Development timelines are typical for the region
PARTNERSHIP PRIORITIES
CONSULTANT LOW
20 14
GOVERNMENT CONSULTANT HIGH
35 0
• Support completion of Highway 41 capacity expansion and other vital transportation infrastructure priorities
10
20
30
40
50
60
70
80
COMMERCIAL
WEEKS
CONSULTANT LOW
18 UNREPORTED
GOVERNMENT CONSULTANT HIGH
32 0
MOUNT PLEASANT
80
10
20
30
40
50
60
70
80
WEEKS
27,808 15,392
AREA OVERVIEW
78,204
DEMOGRAPHIC Population Land Area: Square Mile Median Age Workforce Participation Median Household Income Poverty Rate
109,298 73.19 32.2 65.0% $39,703 22.7%
HOUSING DATA Households Median Home Sale Price Greater North Charleston Median Mortgage Cost Median Gross Rent
39,156 $198,000 $1,283 $909
INDUSTRIAL OFFICE
North Charleston Inventory Vacancy Rate Asking Rent North Charleston Inventory Vacancy Rate
COMMUTE PATTERNS In Area Laborforce Efficiency
35.6%
NORTH CHARLESTON MUNICIPAL REPORT
RETAIL
Asking Rent North Charleston / Hanahan Inventory Vacancy Rate Asking Rent
27,427,044 sq ft 7.1% $5.30 7,366,132 sq ft 9.2% $30.51 5,709,270 sq ft 5.7% $11.73
INVESTMENT OPPORTUNITY STUDY: A PLATFORM FOR DATA-DRIVEN COLLABORATION CHARLESTON METRO CHAMBER OF COMMERCE : JANUARY 2019
* See Submarket Maps section
COMMERCIAL REAL ESTATE
HIGHLIGHTS
DEVELOPMENT TIMELINE PROJECTIONS
• Higher than average poverty rate is juxtaposed by higher than average workforce participation rates • Office, retail and industrial markets are strong with large inventories in all three markets. The key difference when compared to the region is significantly lower average asking retail rents •T he 78,204 workers who travel every day to North Charleston from neighboring jurisdictions creates an enormous housing opportunity
SINGLE FAMILY
• Median home prices are very affordable, but median household income is well below the region CONSULTANT LOW
24 12
GOVERNMENT CONSULTANT HIGH
24 0
10
20
30
40
50
60
70
WEEKS
• Provide structured input to the 2019 Comprehensive Plan Update process by assembling a task force of diverse employers focused on key issues: - Creation of diverse and varied housing opportunities
MULTI-FAMILY
•T he development timelines and costs are the most competitive in the region
PARTNERSHIP PRIORITIES
80
CONSULTANT LOW
8 12
GOVERNMENT CONSULTANT HIGH
36 0
10
20
30
40
50
60
70
80
WEEKS
- Maintain and expand employment centers - Embrace Lowcountry Rapid Transit: plan for dense multi-use transit-oriented nodes • Facilitate open dialog between city officials and industry stakeholders to reduce friction and enhance performance of the permitting process
COMMERCIAL
- Plan for future infrastructure needs CONSULTANT LOW
8 12
GOVERNMENT CONSULTANT HIGH
24 0
NORTH CHARLESTON
10
20
30
40
50
60
70
80
WEEKS
AREA OVERVIEW
51,285
9,132
DEMOGRAPHIC Population Land Area: Square Mile Median Age Workforce Participation Median Household Income Poverty Rate
134,385 108.98 34 67.3% $57,603 16.3%
HOUSING DATA Households Median Home Sale Price
6,369
Upper Peninsula Downtown Charleston Daniel Island West Ashley Area James Island Johns Island Median Gross Rent
$485,350 $962,500 $849,900 $309,000 $371,000 $327,500 $1,695 $1,052
41.1%
CHARLESTON MUNICIPAL REPORT
INDUSTRIAL OFFICE
COMMUTE PATTERNS In Area Laborforce Efficiency
Greater Charleston Inventory Vacancy Rate Asking Rent Downtown Charleston Inventory Vacancy Rate Asking Rent
RETAIL
PENINSULA
* See Submarket Maps section
COMMERCIAL REAL ESTATE
Downtown Charleston Inventory Vacancy Rate Asking Rent
1,913,377 sq ft 4.1% $13.43 4,771,626 sq ft 3.1% $42.22 1,760,117 sq ft 2.6% $46.36
INVESTMENT OPPORTUNITY STUDY: A PLATFORM FOR DATA-DRIVEN COLLABORATION CHARLESTON METRO CHAMBER OF COMMERCE : JANUARY 2019
Median Mortgage Cost
53,348
AREA OVERVIEW
24,826
31,862
DEMOGRAPHIC Population Land Area: Square Mile Median Age Workforce Participation Median Household Income Poverty Rate
134,385 108.98 34 67.3% $57,603 16.3%
HOUSING DATA Households Median Home Sale Price
6,576
Upper Peninsula Downtown Charleston Daniel Island West Ashley Area James Island Johns Island Median Gross Rent
$485,350 $962,500 $849,900 $309,000 $371,000 $327,500 $1,695 $1,052
17.1%
CHARLESTON MUNICIPAL REPORT
INDUSTRIAL OFFICE
COMMUTE PATTERNS In Area Laborforce Efficiency
Greater Charleston Inventory Vacancy Rate Asking Rent Downtown Charleston Inventory Vacancy Rate Asking Rent
RETAIL
WEST ASHLEY
* See Submarket Maps section
COMMERCIAL REAL ESTATE
Downtown Charleston Inventory Vacancy Rate Asking Rent
1,913,377 sq ft 4.1% $13.43 4,771,626 sq ft 3.1% $42.22 1,760,117 sq ft 2.6% $46.36
INVESTMENT OPPORTUNITY STUDY: A PLATFORM FOR DATA-DRIVEN COLLABORATION CHARLESTON METRO CHAMBER OF COMMERCE : JANUARY 2019
Median Mortgage Cost
53,348
5,005
AREA OVERVIEW
9,881
DEMOGRAPHIC Population Land Area: Square Mile Median Age Workforce Participation Median Household Income Poverty Rate
134,385 108.98 34 67.3% $57,603 16.3%
HOUSING DATA
898
Households Median Home Sale Price Upper Peninsula Downtown Charleston Daniel Island West Ashley Area James Island Johns Island Median Gross Rent
$485,350 $962,500 $849,900 $309,000 $371,000 $327,500 $1,695 $1,052
15.2%
CHARLESTON MUNICIPAL REPORT
INDUSTRIAL OFFICE
COMMUTE PATTERNS In Area Laborforce Efficiency
Greater Charleston Inventory Vacancy Rate Asking Rent Downtown Charleston Inventory Vacancy Rate Asking Rent
RETAIL
DANIEL ISLAND
* See Submarket Maps section
COMMERCIAL REAL ESTATE
Downtown Charleston Inventory Vacancy Rate Asking Rent
1,913,377 sq ft 4.1% $13.43 4,771,626 sq ft 3.1% $42.22 1,760,117 sq ft 2.6% $46.36
INVESTMENT OPPORTUNITY STUDY: A PLATFORM FOR DATA-DRIVEN COLLABORATION CHARLESTON METRO CHAMBER OF COMMERCE : JANUARY 2019
Median Mortgage Cost
53,348
AREA OVERVIEW
DEMOGRAPHIC Population Land Area: Square Mile Median Age Workforce Participation Median Household Income Poverty Rate
134,385 108.98 34 67.3% $57,603 16.3%
HOUSING DATA Households Median Home Sale Price Upper Peninsula Downtown Charleston Daniel Island
8,264
West Ashley Area
20,273
James Island Johns Island
3,034
Median Gross Rent
$485,350 $962,500 $849,900 $309,000 $371,000 $327,500 $1,695 $1,052
13.0%
CHARLESTON MUNICIPAL REPORT
INDUSTRIAL OFFICE
COMMUTE PATTERNS In Area Laborforce Efficiency
Greater Charleston Inventory Vacancy Rate Asking Rent Downtown Charleston Inventory Vacancy Rate Asking Rent
RETAIL
JAMES / JOHNS ISLAND
* See Submarket Maps section
COMMERCIAL REAL ESTATE
Downtown Charleston Inventory Vacancy Rate Asking Rent
1,913,377 sq ft 4.1% $13.43 4,771,626 sq ft 3.1% $42.22 1,760,117 sq ft 2.6% $46.36
INVESTMENT OPPORTUNITY STUDY: A PLATFORM FOR DATA-DRIVEN COLLABORATION CHARLESTON METRO CHAMBER OF COMMERCE : JANUARY 2019
Median Mortgage Cost
53,348
HIGHLIGHTS
DEVELOPMENT TIMELINE PROJECTIONS
• Higher than average poverty rate somewhat offset by high workforce participation • Despite significantly higher asking rents on the Peninsula (more than double for retail and almost a third higher for office), vacancy rates are significantly lower than the region’s averages. Parts of the Peninsula are experiencing modest job loss
SINGLE FAMILY
• Median home prices range from the marginally affordable to the region’s most expensive. CONSULTANT LOW
32 47
GOVERNMENT CONSULTANT HIGH
72 0
• All in-area labor force efficiency ratios, other than the Peninsula, create significant transportation congestion
10
20
30
40
50
60
70
80
WEEKS
PARTNERSHIP PRIORITIES • Support implementation of housing policy reforms to promote affordability and diversity of housing options
MULTI-FAMILY
• Development timelines are well above regional averages CONSULTANT LOW
38 34
GOVERNMENT CONSULTANT HIGH
72 0
10
20
30
40
50
60
70
80
• Continue business community engagement in completion of targeted priorities included in the West Ashley Revitalization Plan
WEEKS
• Engage Developers Council to provide continued feedback on implementation of Technical Review Committee process changes • Continue participation on Sustainability Advisory Committee to ensure business input on issues like flooding
COMMERCIAL
• Examine and promote transit-oriented development opportunities related to Lowcountry Rapid Transit
CONSULTANT LOW
30 34
GOVERNMENT CONSULTANT HIGH
72 0
CHARLESTON
10
20
30
40
50
60
70
80
WEEKS
SUBMARKET MAPS COMMERCIAL REAL ESTATE
INDUSTRIAL
OFFICE
RETAIL
DORCHESTER COUNTY
DOWNTOWN CHARLESTON
DANIEL ISLAND | CLEMENTS FERRY
DOWNTOWN CHARLESTON
EAST SUBURBS
DOWNTOWN CHARLESTON
EAST COOPER | CLEMENTS FERRY
NORTH CHARLESTON
EAST ISLANDS | MOUNT PLEASANT
EAST ISLANDS | MOUNT PLEASANT
NORTH SUBURBS
GOOSE CREEK
GREATER CHARLESTON
WEST SUBURBS
NORTH CHARLESTON | HANAHAN
NORTH CHARLESTON
SUMMERVILLE | LADSON
OUTLYING BERKELEY COUNTY
WEST ASHLEY
WEST CHARLESTON COUNTY
WEST ISLANDS
NEXT STEPS THROUGHOUT THE YEAR The identified partnerships will be pursued by Chamber staff with assistance and direction from the Developers Council. Quarterly progress reports will be presented to the Developers Council by staff. Constant dialogue with political and governmental agency leadership will identify additional partnership opportunities. In December 2019, we will report refreshed data successes realized and areas of needed focus.
CHARLESTON METRO CHAMBER OF COMMERCE With approximately 1,600 member organizations representing 160,000 professionals, the Charleston Metro Chamber of Commerce serves as the collective voice of the tri-county business community, and a catalyst for regional economic advancement and member success.
DEVELOPERS COUNCIL Comprised of Charleston Metro Chamber members involved in real estate development, land use management and project planning, design and construction, the Developers Council’s purpose is to identify and promote best practice policy and process improvements to make residential and commercial development not only more time and cost efficient, but responsive to the needs of the community.
Regional job growth projections (2017-2022): EMSI with adjustments by the Center for Business Research, Charleston Metro Chamber of Commerce, as reported in the 2018 Charleston Region Talent Demand Study www.charlestonregionaldata.com Population estimates for all geography levels: U.S. Census Bureau Population projections: Center for Business Research, Charleston Metro Chamber of Commerce Demographics such as age, income, poverty rates, median mortgage cost and median gross rent: U.S. Census Bureau’s latest five-year American Community Survey data (2016, the latest available at the time of this study) Job counts by ZIP code: ZIP Business Patterns series of the U.S. Census Bureau Commuting patterns and labor force efficiency rates: US Census Bureau’s On The Map tool, showing 2015 data, the latest available in 2018 when this study was conducted Housing units permitted and projected housing units needed: Calculated by the Center for Business Research, Charleston Metro Chamber of Commerce, using historical data from U.S. Census Bureau Data on home sales (units and prices): Charleston Trident Association of Realtors (2017 annual report and Local Market Updates-November 2018) Commercial real estate data: Latest quarterly reports from Avison Young www.avisonyoung.us All data on the development process within jurisdictions: Primary research conducted by the Chamber’s Government Relations team in conjunction with the Center for Business Research Data on traffic congestion: Berkeley-Charleston-Dorchester Council of Governments (BCDCOG), serving as the Charleston Area Transportation Study metropolitan planning organization (CHATS MPO), Congestion Management Process report, November 2018 (DRAFT)
INVESTMENT OPPORTUNITY STUDY: A PLATFORM FOR DATA-DRIVEN COLLABORATION CHARLESTON METRO CHAMBER OF COMMERCE : JANUARY 2019
ABOUT US
DATA SOURCES