Midlands Industrial Market Welcomes 2016 with Healthy Activity
- The Midlands, South Carolina industrial market welcomed a decline in vacancy during the first quarter of 2016 as industrial users sought space in the market.
- Capital investments continue to be made throughout the market.
- The presence of South Carolina’s ports is proving beneficial in recruiting businesses that are looking to reduce transportation costs and enhance supply chains.
- Favorable market conditions provide an ideal sales environment.
- The remainder of the year is likely to be accompanied by robust leasing activity and sales.
Industrial Users Are Expressing Interest in the Midlands Region
The Midlands, South Carolina industrial market began 2016 on a positive note following a temporary uptick in vacancy at year-end 2015. Late last year, Bose and Knauf Insulations collectively vacated more than 1.1 million square feet of industrial space, resulting in an increase in vacancy from 7.2% to 8.7% at the end of the year despite significant activity and interest in the market. During the first quarter of 2016, robust leasing resulted in the net absorption of more than 300,000 square feet of space. Consequently, the market’s total vacancy rate declined to 8.3% from 8.7% the previous quarter.
With Bose and Knauf remaining vacant, the vacancy rate is still greater than the third quarter 2015 vacancy rate but is down from 10.1% two years ago. The former Bose facility offers 470,000 square-feet of manufacturing space in Northeast Columbia. The plant is located on 104 acres and is expandable to 1 million square feet. Knauf Insulations vacated approximately 680,000 square feet at One Guardian Way in Fairfield County. The properties are receiving great attention and are expected to generate significant capital investment and job creation upon leasing.
Healthy activity and interest exists throughout the market. Smaller, local tenants are actively seeking space to relocate and expand within the market. Users belong to a broad spectrum of industries, including the service sector and companies catering to construction and the solar sector. Industrial users are attracted to the Midlands region for various reasons including efficient logistics, labor costs and availability of labor.
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