Efficient Logistics to Drive Warehouse and Distribution Growth in the Upstate

Key Takeaways

  • The Upstate, SC industrial market continues to grow and improve, attracting distribution centers and logistics providers to the region.
  • Rental rates continue to inch upwards with declining vacancy rates.
  • Investments continue to flow into the region.
  • Area Development Magazine ranked South Carolina the #3 State for Doing Business in 2015.

Location and Accessibility Attract Distribution Centers

As transportation costs continue to make up a growing portion of a company’s total operating costs, distribution centers and manufacturers are showing greater interest in a site’s location and accessibility to other markets.  The Upstate has received significant attention from several distribution centers and third-party logistics providers, attracting investments from Techtronic Industries, Dollar Tree, Rite Aid and Kenco Logistics Services over the past year.  The Interstate 85 (I-85) corridor runs through the region, connecting it to major markets such as Charlotte, NC and Atlanta, GA, among others.  The Upstate is a 2.5-hour drive to the Port of Charleston, which is also accessible via Norfolk Southern Rail and the South Carolina Inland Port.  Traditionally, the Upstate’s distribution centers catered to the automotive and textile clusters.  Today, however, the region is welcoming distribution centers for a wide array of sectors including consumer products such as beverage, food storage, pharmaceuticals and clothing.  A strong demand exists for large box distribution space throughout the market.  Speculative construction and build-to-suit construction are on the rise in response to the growing demand.  Approximately 4.8 million square feet of industrial space are under construction in the market with build-to-suits accounting for 3.7 million square feet of that space.

Techtronic Industries (TTi) selected Anderson County for its new 1.3 million square-foot light assembly and distribution facility after surveying sites across four states.  TTi is investing $85 million and expects to create more than 200 new jobs.  The build-to-suit facility is currently under construction at the intersection of I-85 and Highway 81 and is expected to complete by mid-year 2016.

Download pdf

Download the full report

For more information, including the market summary statistics, download the full research report.

Download report