Colliers South Carolina Industrial Report: Performance diverges across markets as building boom slows
November 12, 2024
Commercial Real Estate Research & Forecast Report
Q3 2024 South Carolina Industrial
Market Highlights
South Carolina’s overall industrial performance was mixed across the state as solid absorption along the I-85 and I-77 corridors was offset by large-scale move-outs in the Charleston and Pee Dee regions. The state saw vacancy rise to a recent high of 10.77% as legacy manufacturing closures and turnover within the 3PL sector, mirroring national trends, drove negative net absorption of -673,560 square feet.
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Key Takeaways
- New construction is tipping away from excess speculative space towards build-to-suit projects
- South Carolina ports continue to exceed 2023’s record pace
- Infrastructure investment in ports and highways improving South Carolina’s long-term industrial competitiveness
Forecast
The Greenville-Spartanburg and Columbia markets are performing well as the Port of Charleston saw container moves outpace 2023’s record volume. Average asking rents continue to rise across the state’s major metros, partially the product of high vacancy at high asking rents in the Charleston market. Construction activity is beginning to tip away from the speculative boom of the past three years towards build-to-suit projects as 76% of in-progress speculative space will finish by mid-2025.
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.
