According to Gerrie F. Watson, CCIM, a commercial investment manager for Realty One, Myrtle Beach is currently building more Class A office space, due to the dearth of Class A buildings on the Grand Strand.

"The growth in Horry County can only be classified as phenomenal. I can't think of any area of commerce that hasn't grown by leaps and bounds," says Watson. Many major franchises and corporations that are new to the area are leasing additional office space off-site from their restaurants and businesses. In the past, most Class A was primarily user occupied, but new professional complexes are being built for multi-tenants.

The downtown area of Myrtle Beach is growing with new office space for lease, just steps from the tourist attraction Broadway at the Beach. Medical/office space has also been booming along the 48th Ave. section and 82nd Parkway Section of Myrtle Beach. Oak Street, very close to the convention center, is now the hub of major banking and lending institutions. There is not any one entity dominating the office market with more space absorption than another. "The Myrtle Beach area is truly a melting pot," says Watson.

The majority of development taking place for all types of office space is in Myrtle Beach, but business in booming in other municipalities such at North Myrtle Beach and Surfside Beach.

"A corridor of opportunity," says Watson, "will be the office/PUD complex that has a mixture of office condos and probably light industrial space in the rear of the property. There is very little light industrial space here in Horry County for the small plumber, electrician, and tradesman. PUD office parks will do very well here."

With office construction booming, the rental range for most Class A space begins at $20 to $25 for base rents. "I am finding very few allowances made by the landlords for tenant upfits," says Watson. She observes that there is very little vacancy in Class A office space, "probably less than five to seven percent. For B & C space probably 10 to 12 percent. I am seeing some retail in strip centers being converted to office as well," she says.

With Horry County's strong demographics, it's attractive beaches, golf courses and retail centers, development is expected to continue to explode in the next few years.

Gerrie Watson is a commercial investment manager for Realty One.


©2001 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.