Industrial Insights V1 2024 5.30.24 - Flipbook - Page 3
The once red-hot Charleston industrial
market is undergoing a pivotal shift. This
report explores the current dynamics,
acknowledging present challenges while
highlighting the market’s enduring strengths.
A key issue is the imbalance between supply
and demand. Unprecedented deliveries of
industrial space (over 12.7 million square
feet since 2023) have outpaced leasing
activity, by a large margin. Net absorption is
at its lowest point in recent memory, and the
average lease size has shrunk by almost 50%.
This con昀氀uence of slowing demand, smaller
leases, and rising vacancy rates suggests
more downward pressure in the near future.
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Total Market Stats: Page 04
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Stats By Submarket: Page 06
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Imbalance in the Market: Page 08
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SC Ports Capital Projects: Page 10
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Supply Chain: Visualized: Page 12
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Top Industrial Occupiers: Page 14
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Recently Delivered: Page 16
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Under Construction Pipeline: Page 24
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Proposed Pipeline: Page 30
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Lee & Associates Team: Page 40
However, amidst this recalibration, there
are reasons for optimism. The signi昀椀cant
decline in new industrial groundbreakings
during 2023 indicates developers are
adapting, suggesting the current imbalance
is cyclical. SC Ports, the region’s economic
engine, also remains a powerful driver.
Capital investments like the Navy Base
Intermodal Facility and Inland Port Greer
expansion demonstrate a commitment
to enhancing ef昀椀ciency and solidifying
Charleston as a premier logistics hub.
Beyond SC Ports, Charleston boasts a
strong foundation built upon industry
titans like Boeing, Volvo, Mercedes, and
countless others. This established base
underscores the region’s strategic location,
skilled workforce, and business-friendly
environment. While short-term headwinds
persist, these enduring fundamentals
position Charleston to weather the current
period and emerge even stronger as a
globally competitive industrial powerhouse.
The Charleston industrial market is
undoubtedly experiencing a period of
transition. However, this should not be
misconstrued as a decline. Rather, it’s a
necessary adjustment to accommodate the
rapid growth witnessed in recent years. With
unwavering support from SC Ports, a proven
track record of attracting major industry
players, and a strategic course correction
from developers, the Charleston industrial
market is well-positioned to weather the
current storm and emerge even stronger,
solidifying its place as a premier logistics
hub on the global stage.
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