Demand and new construction on the rise
- Quarter-over-quarter the Charleston industrial market continues to post positive absorption; during the second quarter of 2019 the market absorbed 632,810 square feet.
- The manufacturing sector has few availabilities remaining and this quarter the vacancy rate dropped to 6.37%; likewise, the flex/R&D vacancy rate dropped to 4.18%.
Decentralized distribution hubs drive South Carolina demand
The decentralization of distribution hubs is a direct result of suppliers meeting the delivery demands of consumers within hours to one day of their orders, rather than having one main hub that delivers within a few days. This shift has driven the industrial demand up throughout South Carolina because the entire state has access to logistical suppliers such as the Port of Charleston and the Inland Ports of Dillon and Greer. It follows then that industrial occupiers desire a location within regions with the highest population growth and, according to the most recent U.S. Census data, South Carolina’s population is expected to increase to 5.46 million by the year 2020.
Rising industrial demand is evidenced through the absorption numbers over the past year and a half. Last year, the South Carolina industrial market absorbed 12.84 million square feet and already this year that number has been surpassed; 13.47 million square feet have been absorbed across the state. Absorption is expected to continue trending upward throughout the year as demand rises and more manufacturers and distributors locate across the state.
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