Beaufort Commercial Real Estate Market
Beaufort's commercial real estate market operates at the intersection of military spending and coastal tourism — a combination unique among SC small cities. Parris Island Marine Corps Recruit Depot processes 20,000+ recruits annually, and graduation events bring tens of thousands of visiting family members who spend at Beaufort hotels, restaurants, and shops. The Beaufort Naval Hospital adds federal healthcare employment. This military demand is layered on top of a tourism economy driven by the city's stunning historic district, Pat Conroy literary heritage, and ACE Basin natural attractions.
Downtown Bay Street's walkable commercial district is Beaufort's commercial crown jewel, with restaurants, galleries, boutiques, and professional offices in preserved antebellum buildings. The district's tourism appeal and historic character generate rents that exceed what Beaufort's 13,000 population alone would support. Boundary Street and the Robert Smalls Parkway corridor provide conventional suburban retail and medical services. Beaufort Memorial Hospital anchors civilian healthcare demand. The growing film industry — Beaufort has served as a location for multiple major productions — adds periodic economic impact.
Beaufort's buyer pool includes military-connected investors, historic preservation enthusiasts, lifestyle buyers attracted to the Lowcountry coastal setting, and hospitality investors who understand the Marine graduation tourism cycle. Cap rates reflect the combined military and tourism premium — tighter than typical SC secondary markets. For sellers, Beaufort properties should be marketed to buyers who understand the dual-demand dynamic: military spending provides the stable floor, while tourism and coastal lifestyle provide the premium ceiling.
Top Property Types in Beaufort
Retail & Tourism
Bay Street's historic commercial district generates premium rents driven by tourist foot traffic, Marine graduation visitors, and the affluent Beaufort residential community. Restaurants, galleries, and boutique retail occupy restored antebellum buildings with architectural character that cannot be replicated. Properties with Bay Street frontage, waterfront views, or outdoor dining overlooking the Beaufort River command significant premiums. The district's concentrated charm creates a destination effect where visitors spend hours walking and shopping — benefiting all Bay Street businesses through shared foot traffic.
Medical & Senior
Beaufort Memorial Hospital and the Naval Hospital together generate medical demand from both civilian and military populations. Physician offices along Boundary Street and the Ribaut Road corridor serve the local community. Marine families stationed at Parris Island and MCAS Beaufort use civilian medical services for certain specialties. The aging coastal retiree population amplifies healthcare utilization. Multi-tenant medical buildings near the hospital serve a patient base drawn from Beaufort County's southern portion.
Office & Government
Marine graduation tourism generates demand for hospitality properties — hotels, vacation rentals, and bed-and-breakfasts that accommodate the tens of thousands of family members visiting Parris Island throughout the year. Graduation weekends create predictable demand spikes that hotel operators can plan around. Beyond military tourism, Beaufort's coastal charm, literary heritage, and proximity to Hunting Island State Park attract leisure visitors year-round. Properties with character architecture and Bay Street or waterfront proximity command hospitality premiums.
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Cap rates in Beaufort reflect the coastal market with military stability.
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