Rental Market Continues to Thrive

Demand for apartments across the Lowcountry is fueling rental construction boom, particularly in Mount Pleasant, according to a recent market report.

Despite having 900 new apartment units added to the market in 2012, apartment complexes saw only a small uptick in vacancies amid widespread rent rate increases, according to Colliers International.

Rates across the region rose by about 5 percent in 2012, according to Colliers.

"Units averaged about $853 per month or $0.87 per square foot," the firm reported. "Downtown saw the largest gains with a 19.6 percent increase in average rents. Monthly rental rates jumped nearly $50 per month on average compared to last year, a trend seen with some consistency over the past three years."

The rental business saw a boom despite several new complexes coming on line in 2012. New projects include the following complexes: Woodfield Long Point, Gregorie Ferry Landing, Kilnsea Village, and Channel at Bowen. Of these 943 units delivered, they are 64 percent occupied, or over 600 units absorbed.

Competition will continue to heat up in 2013. Rental units have been approved in Summerville, Goose Creek and Mount Pleasant and for downtown.

Mount Pleasant could more than double its rental capacity if developers start all the projects the town has approved. So far, River's Walk off Mathis Ferry Road and The Boulevard on Coleman Blvd. are underway.

The town can stand to have even more apartments, particularly those that cater to a higher-income client, Colliers reports.

"The Mount Pleasant submarket has the highest number units under construction and proposed," Colliers reported. "The demand for product here is driven by proximity to good public schools, lots of shopping/dining options, access to the outdoors and easy access to downtown."