Shifting production trends increase Charleston industrial demand
- 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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