Collier’s “2019 Research & Forecast Industrial Report” shows demand is high throughout the state of South Carolina in the industrial market. South Carolina’s industrial properties absorbed 4.81 million square feet, and the industrial market is expected to remain strong with a steady demand throughout 2019. There are 13.37 million square feet of industrial properties under construction which will provide quality space to the market at increased rental rates, according to the report.
Market Indicators Are Strong
Accessibility to domestic and global markets is a primary factor for many businesses as they search for a new location. South Carolina provides companies with efficient logistics to have quick access to suppliers and customers through the ports, rail lines, and interstates. Global trade continues to rapidly expand in the state and as a result, the region is booming with industrial activity. The Port of Charleston is a major hub for imports and exports and is the deepest eastern seaport. Greenville and Spartanburg are becoming a major industrial hub with “incredible inland port logistics and manufacturing business base,” according to the Collier’s report.
South Carolina’s Industrial Market Growth
South Carolina’s industrial market is comprised of 426.19 million square feet and 6,829 buildings. The South Carolina market grew by 15 buildings since the last quarter of 2018 with an additional 3.34 million square feet. The South Carolina market rate dropped from 7.58 percent in 2018 to 7.13 percent so far this year. Rental rates for available industrial space increased to $3.83 per square foot this year for a 5.22 percent increase from the previous year.
Charleston Industrial Market is Becoming a Major Hub
Demand for Charleston industrial space is growing, with approximately 54.20 million square feet of industrial inventory with 1,072 buildings. There are six new buildings that were delivered in the first quarter, which added 217,431 square feet of available industrial space. There are currently 19 buildings under construction in the Charleston region totaling 3.51 million square feet. The overall market vacancy rate decreased from 8.95 percent last year to 8.09 percent this year. The rental rates continue an upward trend from $4.95 per square foot in 2018 to $5.21 so far this year.
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