2020 Q3 Industrial Charleston Report

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Shifting production trends increase Charleston industrial demand

Key Takeaways

  • The Charleston industrial market continues to post positive absorption; causing the vacancy rate to decrease to 9.14% this quarter. 
  • There are 823,800 square feet of industrial construction in the Charleston pipeline.
  • Increased port capabilities, consolidated aerospace production, uptick in automotive manufacturing and an increase in e-commerce are shifting production demands to the Charleston industrial market.

Industrial production trends boost activity

There are several factors leading to increased demand within the industrial sector of Charleston. Increased port capabilities, consolidated aerospace production and an uptick in e-commerce are shifting production demands to the Charleston industrial market. Due to the deepening of the Port of Charleston, increased import and export shipping operations are moving to the East Coast, specifically South Carolina. In addition, the construction of the Inland Port of Dillon and record-breaking rail moves at the Inland Port of Greer are facilitating logistics to and from South Carolina. The consolidation of the Boeing 787 Dreamliner production to North Charleston will increase the demand for aerospace-related equipment and parts manufacturers and distributors in the area. Also, the Volvo plant in Ridgeville is planning to add a second car to the production line sometime in 2021; therefore, increasing automobile manufacturing and distribution. Due to the ongoing pandemic, the need for e-commerce has increased exponentially; thus, increasing the demand for industrial space. Online grocery shopping is a expanding sector of e-commerce which, in turn, is increasing the need for cold storage to accommodate the vast amount of online grocery orders. Warehouse space close to major logistic pipelines is predicted to continue attracting interest from both investors and users as e-commerce growth increases. Therefore, due to these factors, the need for industrial space within the Charleston market is expected to rise and the vast amount of planned construction deliveries will likely be leased relatively quickly upon delivery.

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Charleston industrial report

2020 Q3 Industrial Charleston Report

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Related Experts

Mark Erickson

Vice President

Charleston

As a Vice President of Colliers International | South Carolina and an industrial and office specialist, I provide both tenant and landlord representation for clients in the sale, leasing and disposition of industrial and office properties across Charleston and the Lowcountry region of South Carolina. Whether I am negotiating critical terms in a lease for a tenant or consulting an owner or landlord in the sale or leasing of their space, my role is to meet my client’s real estate and financial goals, both for today and into the future.

Charleston is a small but powerful and unique market, and I pride myself in connecting people and identifying opportunities that others might miss. My goal is to maximize value for my clients, whatever you value most from your real estate, and to exceed your expectations.

I initially entered the commercial real estate industry in Atlanta, where I was involved in commercial property management and development for over fifteen years before moving to Charleston. In pursuit of the skills and experience that will most benefit my clients, I have earned the Society of Industrial and Office Realtors® designation, a prestigious industry achievement, and am currently a candidate for my Certified Commercial Investment Member (CCIM) designation.

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Matt Pickard

Brokerage Associate

Charleston

As a Brokerage Associate, my expertise is in representing landlords and tenants in the sale, leasing and disposition of industrial and office properties. My role is to understand your commercial real estate needs and, using my expertise in the local market conditions and trends, recommend creative solutions, whether that is effective and efficient space planning for a tenant’s new space or maximizing a property’s lease rate or sales price for ownership.

I’m fascinated with supply chain and have developed strong relationships at the SC Ports Authority and with local industry leaders. I have leveraged my knowledge of how supply chain and industry work to serve my clients. I believe in constant communication and follow-up and am committed to educating my clients to better understand the bigger picture and make smart real estate decisions that benefit you both today and down the road.

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Adam Baker

Brokerage Associate

Charleston

I believe when it comes to buying or leasing an industrial building, it's more than just space for you manufacturing or warehousing requirements. IT IS YOUR BUSINESS! I believe selecting the right space in the right location can elevate your brand, streamline your operations, attract leading talent, and make a meaningful impact on your bottom line. And most importantly I believe in always doing what's in my client's best interest.

By learning about your business strategy, understanding the market, and providing meaningful business connections I advise and represent businesses in their real estate decisions whether buying, selling, or leasing to help them achieve their business goals.

I’m passionate about helping businesses grow. Throughout my career, I have worked with small business owners to Fortune 500 executives across a wide range of industries, and I always strive to go beyond what is expected by my clients.

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