Industrial Insights V1 2024 5.30.24 - Flipbook - Page 9
THE UPSIDE
BRIGHTER DAYS AHEAD FOR INDUSTRIAL
• FEWER GROUNDBREAKINGS IN 2024 WILL LEAD TO STABILIZATION
Despite the current state of the market, it appears that developers/
investors are recalibrating their strategies to align with these market
dynamics, as evidenced by the 86% YOY decline in new industrial
groundbreakings in 2023. This adjustment in supply pipelines suggests
that the current supply-demand imbalance may be a phase in the cycle.
• SC PORTS: FULL STEAM AHEAD
The South Carolina Ports Authority, a top-10 national seaport, is THE
main driver of industrial real estate in the Charleston market. And now,
SC Ports is poised to provide key momentum to buoy the market past its
current slump. Major capital initiatives are underway and provide a path
forward. The upcoming Navy Base Intermodal Facility (July 2025), which
will enhance rail connectivity from the Port to inland destinations and
will fortify SC Ports’ intermodal prowess. Expansion of Inland Port Greer
is another major project which will double cargo capacity, as evidenced
by its nearly 12% intermodal volume growth in 2023, defying nationwide
declines.
Another game-changer is SC Ports’ acquisition of the 280-acre former
WestRock paper mill site, enabling the expansion of the North Charleston
Terminal to accommodate 5M+ containers and creating 5,000 feet of
linear berth space. This strategic move, coupled with ongoing capital
initiatives like the Hugh Leatherman Terminal Phases 2 & 3, Wando Welch
Terminal refurbishment, and the Harbor Deepening Project, positions SC
Ports as a catalyst for Charleston’s industrial resurgence, solidifying the
region as a globally competitive logistics hub.
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