Secondary market activity expected to increase

Key Takeaways

  • Due to 11-hour drive-time regulations, secondary markets become attractive for the location of new industrial centers.
  • Despite 2,133,050 square feet of completed construction during the third quarter, the Greenville-Spartanburg-Anderson market still absorbed approximately 2.63 million square feet.

Secondary Market Growth is Feasible Due to New ELD Regulations

Due to e-commerce, the industrial market is booming throughout the U.S., and manufacturers and distributors are searching for new places to locate industrial facilities. Primary cities such as Boston, Chicago, New York, Los Angeles, San Francisco and Washington D.C. used to be among the first considered when choosing a location for manufacturing and distribution. However, many secondary markets such as Greenville, Spartanburg, Charleston, Cincinnati, Indianapolis, Memphis, Orlando, Phoenix and Las Vegas are emerging as a logical choice for new locations. The Greenville and Spartanburg regions will be choice secondary markets within the logistics chain due to access to logistics components such as: close proximity to the deepest seaport in the U.S., ease of access to the inland ports in Greer and Dillon, access to major airports, and convenient accessibility to multiple highways. In addition, both of these regions have land available for development, an increasing number of industrial jobs, close proximity to other primary and secondary markets, capital investment interest, and rapid population growth. 

The trucking industry is a focal point within the industrial logistics chain, and as trucking regulations are switched from Automatic On-Board Recording Devices (AOBRDs) to Electronic Logging Devices (ELDs), secondary markets will become more attractive than primary markets for new manufacturing and distribution centers.

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