Charleston speculative construction is underway
- Despite new deliveries over the past year, the Charleston market posted positive absorption this quarter
- There are 2.1 million square feet delivering this year and another 4.8 million expected to deliver or break ground in the next 12 months
- Auto manufacturing ramps up in the Charleston market
Demand in the Charleston industrial market has been strong enough to begin speculative construction. However, with 2.1 million square feet delivering this year and another 4.8 million square feet scheduled to deliver or break ground in 2022, overall vacancy rates are expected to rise – even with positive absorption. Until some of the speculative construction is absorbed, rental rates will remain unchanged; however, rising construction costs will force rental rates upward.
A Note Regarding COVID-19
As we publish this report, the U.S. and the world at large are facing a tremendous challenge, the scale of which is unprecedented in recent history. The spread of the novel coronavirus (COVID-19) is significantly altering day-to-day life, impacting society, the economy and, by extension, commercial real estate.
The extent, length and severity of this pandemic is unknown and continues to evolve at a rapid pace. The scale of the impact and its timing varies between locations. To better understand trends and emerging adjustments, please subscribe to Colliers’ COVID-19 Knowledge Leader page for resources and recent updates.