Colliers Charleston Industrial Report: Vacancy peaking as Charleston market remains oversupplied
July 22, 2024
Commercial Real Estate Research & Forecast Report
Q2 2024 Charleston Industrial
Market Highlights
The Charleston industrial market saw overall demand remain solid even as 2,764,625 square feet delivered, posting overall net absorption of -439,034 square feet. Cargo volumes at the Port of Charleston are tracking nearly identically to the same period in 2023, though still down from 2022’s pandemic-driven record volumes. Simultaneously, logistics continues to be the primary market driver for Charleston with demand centered on spaces under 200,000 square feet, and tenants in the market face fewer inventory constraints than in 2023.
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Key Takeaways
- Deliveries have outpaced absorption capacity as market faces excess supply
- Upcoming North Charleston Terminal expansion will provide additional logistical capacity
- Investment sales slow in face of interest rate uncertainty
Looking forward
With the pipeline of new construction tapering off to 1,986,551 square feet and activity increasing, vacancy is expected to hit a cyclical peak this year. This excess inventory, along with SC Ports Authority’s labor resolution at the Hugh Leatherman Terminal and planned capacity expansion at the former WestRock paper mill site, ensures the Charleston industrial market is well positioned to serve the booming Southeastern market.
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 66 countries, our 19,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. With annual revenues of $4.3 billion and $98 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.
