Charleston South Carolina

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Charleston Market Summary
The condo conversion trend continues to impact Charleston’s apartment market. The sum of the number of units under construction in August 2005 and February 2006 was 2,510, which is more than fifty percent higher than the number of units under construction in the prior twelve month period.

However with many communities converting to condominium, the total number of units in the Charleston market is actually declining. There were 420 new units added to the market as of February of this year, however, there were also
negative (-768) units removed from the market due to condo conversions, for a net negative (-348) unit decrease in the overall supply.

Currently there are 1,114 units under construction, with the majority of these units are in the Summerville submarket. There are an additional 1,505 units proposed, and half of these units are located in the West Ashley submarket, with the rest of the propsed units divided between Mt. Pleasant and Summerville.

The increase in condo conversions has caused absorption to drop to negative (-930) units absorbed, and vacancy rates have increased slightly to 7.4%.

Rental rates are still on the rise, and currently the average rent is $719 per month. Same-store rents increased $8.00 or 1.1% over the past six months, and they should continue to increase over the next six months. One-bedroom units rent for an average of $647 per month. Two-bedroom apartments are renting for $728 on average, and three-bedroom units are an average of $854 per month. Concessions are being offered at 19% of all communities, with most communities offering between 1/2 to 1 month free rent.

Market Data Information Source: © March, 2006 Real Data Aptindex