Industrial Insights V2 2023 FINAL - Flipbook - Page 10
MARKET CHALLENGE #2
OVERALL VACANCY RATE RISES
Since the beginning of 2022, the Charleston market has seen 14.9M SF of new deliveries. This is
the largest chunk of new product we’ve seen in a similar time frame in our history. Regarding the
reason behind the increase in vacancy, it’s about as cut and dry as it seems. The sentiment was
that the arrival of this new product would cause the vacancy rate to creep slightly upwards from
an all-time low 昀椀gure last year.
And as economic conditions frizzled, tenants have been taking a bit more time to sign up for longterm deals. That’s not to say activity has fallen off a cliff. We’re still seeing plenty of tours, interest,
and deals, but it’s taking a little longer for parties to come to terms. This is good news for a market
that even in a down cycle, remains valuable for investors and occupiers of industrial real estate.
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
2019
2019
2020
2020
2021
2021
Overall Vacancy Rate
10
2022
2022
2023
2023