ATLANTA—Commercial real estate continues its recovery in the Southeast. Atlanta is hitting on all cylinders and that momentum is spilling over to cities a little further north—like Charleston.

Charleston is reporting strong activity in its office and industrial segments. So what's behind it? GlobeSt.com caught up with Mike Ferrer, broker in charge of Lincoln Harris' Charleston office, to get all the details in this exclusive interview.

GlobeSt.com: Tell me about the state of the office and industrial markets in the Charleston region?

Ferrer: The office market has made a strong recovery, with vacancy falling from 11% in the first quarter of 2014 to 7.8% in the second quarter of 2015. Increasing demand and a lack of supply are pushing up gross asking rents, which reached $19.49 per square foot in the first quarter.

Vacancy in the industrial market fell by more than 2 million square feet from 4.6 million square feet in the first quarter of 2014 to 2.6 million square feet in the second quarter of 2015. With easy access to the Port of Charleston, industrial properties are a hot commodity for investors. JL & Associates purchased a six-building industrial park in North Charleston for $22 million in early May.

GlobeSt.com: What's the current state of Charleston's economy?

Ferrer: Charleston's economy is the strongest it has been in years. With Volvo starting construction on its $500 million plant, which will bring 4,000 new jobs to the area, and an uptick in the development of new homes and hotels, the market is producing a favorable environment for commercial real estate growth.

With new jobs being produced, a record number of people are moving to the city. Our population has increased by more than 50% in the last decade, and an estimated 44 people move to the Tri-County market per day. Additionally, an uptick in tourism is occurring, with nearly 5 million visitors per year coming to the city. On Upper King Street, 12 hotels are under construction to accommodate the growing need for hotel space.

GlobeSt.com: What kinds of companies and tenants coming to or growing in the Charleston region?

Ferrer: Charleston was the number eight city for tech startups last year, and an increasing number of technology companies are choosing to locate here. However, we are seeing tenants in variety of fields enter Charleston including the automobile and environmental industries, as well as medical, aerospace and logistics. The CBD remains the most popular area for office space, with a vacancy rate of 5.9% in the second quarter of this year.

GlobeSt.com: Can you give us a quick update on the Port of Charleston?

Ferrer: The Port of Charleston remains one of the top ports for automotive, tire and manufacturing exports. The US Army Corps of Engineers approved the deepening of the harbor from 45 feet to 52 feet in late June. Now, the Army Corps' chief of engineers must create a report, which is then submitted to Congress for approval. The report is expected to be complete in September.

The deepening of the harbor will allow the Port of Charleston to maintain its status as one of the leading ports in the country once the Panama Canal expansion is complete. In fact, the Journal of Commerce named the Port of Charleston the “Top Port” in its Productivity Awards in February. The industrial market should continue to benefit from the growth of the Port of Charleston for years to come.