Construction deliveries raise vacancy rate
- At first glance it appears the Charleston submarkets had a negative quarter of activity, when in reality the market was strong enough to retain current tenants while adding new space to the inventory.
- There are 1.67 million square feet of industrial construction in the Charleston pipeline.
- The actual effects of the outbreak of COVID-19 on the industrial real estate sectors will not be realized for several quarters.
Near-vacant construction completed this quarter
Despite the second quarter of 2020 occurring amid the Coronavirus and temporary business closings, industrial construction still completed within the Charleston warehouse sector. There were 545,888 square feet of warehouse completions this quarter; however, 486,513 square feet of the warehouse space is vacant. While the Charleston industrial market was able to make it through a much-anticipated slow quarter due to COVID-19, that amount of vacant space added to the Charleston industrial market increased the vacancy rate. At first glance it appears the Charleston submarkets had a negative quarter of activity, when in reality the market was strong enough to retain current tenants while adding new space to the inventory. Since warehouse and manufacturing space demand has remained strong and within the essential workforce pipeline, it is anticipated that the warehouse space delivered this quarter and the construction still in the pipeline will be absorbed quickly upon delivery.
Download the full report
For more information, including the market summary statistics, download the full research report.Download report