Industrial Market Remains Strong - Lee and Associates

Charleston's Industrial Market Remains Strong

May 23, 2023

Charleston, South Carolina's warehouse market is thriving. Sky-high under construction numbers, dirt-low vacancy rates, and positive net absorption figures point to the overall health of this asset class. It's no wonder businesses and investors alike continue to pour capital into our strategic East Coast locale.

Under Construction Pipeline

Amidst the vibrant commercial real estate landscape of Charleston, SC, a remarkable wave of warehouse construction is currently sweeping the market, leaving an indelible mark on the city’s economic growth and development. As the demand for distribution centers, logistics hubs, and e-commerce facilities continues to surge, this influx of new construction signifies a pivotal moment for the Charleston market. With its strategic location, robust transportation infrastructure, and thriving business environment, Charleston has become an attractive destination for companies seeking to capitalize on the booming warehouse industry. This surge in construction not only enhances the city’s logistical capabilities but also positions it as a regional powerhouse, fueling economic prosperity and solidifying its status as a hub of commerce and opportunity. Below is the current Class-A new construction delivery dates broken down by county:

Vacancy Rate

Charleston boasts an impressively low industrial vacancy rate, signaling a thriving and highly sought-after environment for businesses and investors. With vacancies near an historic low, this remarkable trend reflects the region’s robust economic growth, attractiveness to investors, and vibrant commercial real estate climate. The scarcity of available spaces not only signifies a healthy and competitive market but also presents a unique opportunity for property owners to maximize their returns and for occupiers to secure prime locations in this flourishing market.

Asking Rate

The warehouse market in Charleston is also witnessing a steady and upward trajectory in the asking rent per square foot, highlighting a promising trend for property owners and investors. With rental rates gradually on the rise across all building sizes, this surge signifies the market’s growing strength and attractiveness, pointing to the region’s robust economic growth, high demand, and limited supply.