Colliers South Carolina Industrial Report: Supply ahead of demand as deliveries drive increased vacancy
July 25, 2024
Commercial Real Estate Research & Forecast Report
Q2 2024 South Carolina Industrial
Market Highlights
South Carolina’s overall industrial performance sagged as a large wave of deliveries met softer demand, leading to statewide net negative absorption of -776,522 square feet and lower average asking rents at $5.81 per square foot. Buildings larger than 250,000 square feet comprised 65.8% of all vacancy, highlighting oversupply conditions for large spaces across the state.
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Key Takeaways
- Deliveries outpaced demand, particularly among spaces greater than 500,000 square feet
- The construction pipeline continued to taper as vacancy rose
- Asking rents decreased as larger spaces dominated vacancies
Forecast
Vacancy is likely to peak in the near term as the pace of new deliveries slows into 2025 with persistently high interest rates limiting speculative construction starts and leasing interest increasing statewide following late 2023’s relative lull.
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.
