Industrial Insights V2 2023 FINAL - Flipbook - Page 11
THE UPSIDE
ALL SIGNS POINT TO MORE POSITIVE ABSORPTION
• NEW CONSTRUCTION IS STILL STRONG
Despite the rise in vacancy, the number of new construction projects hasn’t
tapered much compared to other port markets. In Q3 2022, Charleston saw
12.9M SF of construction ongoing, compared to 10.4M SF at the same time
this year, a 24% decrease. When we look at California’s Inland Empire portdependent market, the numbers are little more jarring. In Q3 2022, Inland
Empire had 41.7M SF under construction, compared to just 29.4M SF this
year, a 42% decrease.
• ECONOMIC INVESTMENT PERSISTS
Even the increased vacancy can’t dampen Charleston’s industrial investment
outlook as several major announcements have been made in 2023. These
include plans by Volvo to further expand at Camp Hall, Redwood Materials
$3.5B facility, Mankiewicz Coatings 100,000 SF expansion in Mt. Pleasant,
and several others.
• TRANSACTIONAL ACTIVITY PERSISTS
Another silver lining is that deals are still happening. So far in 2023, we’ve
seen 3.33M SF leased and are in the positive for Net Absorption.
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