Colliers Charleston Industrial Report: Elevated vacancy provides tenants with options
November 11, 2024
Commercial Real Estate Research & Forecast Report
Q3 2024 Charleston Industrial
Market Highlights
Despite an ongoing wave of new deliveries pushing vacancy higher, Charleston’s industrial market continues to show signs of healthy demand as 927,284 SF of new leases signed in Q3. The Port of Charleston’s continued evolution, anchored by the North Charleston terminal expansion and Naval Base Intermodal Facility, has ensured that the market remains well-positioned for logistics and manufacturers alike in the long term. In the short term, excess vacancy provides tenants with numerous options with spaces divisible to 5,000-30,000 SF experiencing the strongest demand.
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Key Takeaways
- Tenants are increasingly seeking small blocks of space in the 5,000 to 30,000 square foot range
- Rents beginning to lower, though merchant landlords are willing to carry short-term vacancy
- Speculative development remains active on long-term market positioning
Looking forward
Many owners with larger spaces remain willing to carry empty space in lieu of lowering rents as the market navigates a changing logistics environment. Development continues to reach into rural areas with Google expanding its Berkeley County data center complex while breaking ground on a new center in Dorchester County. Speculative development is slowing while build-to-suit projects continue at a steady pace.
About Colliers
Colliers | South Carolina is the largest full-service commercial real estate firm in South Carolina with 66 licensed real estate professionals covering the state with locations in Charleston, Columbia, Greenville and Spartanburg. Colliers is an Accredited Management Organization (AMO) through the Institute of Real Estate Management (IREM) and is the largest manager of commercial real estate properties in South Carolina with a portfolio of over 23 million square feet of office, industrial, retail and healthcare properties. Colliers’ staff hold the most professional designations of any firm in South Carolina. Colliers | South Carolina’s partner, LCK, provides project management services for new facilities and renovations across South Carolina.
Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 68 countries, our 22,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. With annual revenues of $4.4 billion and $96 billion of assets under management, Colliers maximizes the potential of property and real assets to accelerate the success of our clients, our investors and our people. Learn more at corporate.colliers.com, X @Colliers or LinkedIn.
