South Carolina absorption on track to double 2018 absorption total
- South Carolina industrial markets have already surpassed the total absorption for last year - this quarter alone, the state absorbed 6.45 million square feet.
- Rental rates continue in an upward trend and averaged $4.20 per square foot during the second quarter of 2019.
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 people 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 in the first two quarters. Absorption is expected to continue trending upward throughout the year as demand rises and more manufacturers and distributors locate throughout South Carolina.
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