Consistent growth in Charleston industrial market expected to continue
October 19, 2017
CBRE Research has released the Q3 2017 data on the industrial commercial real estate market in Charleston. There is more than 5.7 million square feet of industrial product under construction with expectations of continued growth in 2018. In the last four quarters, the Charleston Industrial market has absorbed more than 1.8 million square feet of space.
While the North Charleston/Ladson submarket is the heart of industrial development absorbing 1.6 million square feet in the last four quarters and with more than 2.1 million square feet under construction, the I-26 North submarket now has 3.6 million square feet under construction, including two speculative developments totaling 440,000 square feet.
“The construction and now subsequent announced expansion of Volvo’s first North American manufacturing facility has increased speculative development activity in the I-26 North submarket,” said CBRE Senior Vice President Bob Barrineau. “The combination of continued increases in Port volume, and the nearing completion of both the Volvo facility and Mercedes-Benz Vans manufacturing facility should help continue the growth.”
Low vacancy rates of 5.5% and rising asking rates currently are continuing to attract investor and developer activity. Charleston should be expecting new Class A facilities, as there are several land sites primed for both speculative and non-speculative development.
“Despite heavy speculative development activity, medium-sized tenants ranging from 25,000-75,000 square feet are having a difficult time securing space,” comments CBRE Vice President Brendan Redeyoff.
The following are highlights of the report.
• Rapid growth expected to be sustained based on 5.7 MSF under construction
• Volvo is forcing market growth along I-26
• Speculative development is not meeting all needs
• Medium-sized tenants have little to no availability in market
• Second inland port to promote additional growth at Port of Charleston
Click here to view the full report.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
