Industrial demand will exceed supply in the next few months: new development is essential
- The South Carolina industrial market absorbed 6.41 million square feet throughout 2020, dropping the vacancy rate to 7.22%, despite 7.64 million square feet of construction deliveries.
- There are 28 buildings totaling 5.51 million square feet under construction and 39 buildings proposed to be built which will add approximately 7.61 million square feet throughout the state upon completion.
- Within the next three months, the delivered speculative construction will likely be absorbed and new development will be crucial to keep up with growing demand.
Annual S.C. Market Overview
The South Carolina industrial market is comprised of 449.20 million square feet within 6,967 buildings. Throughout 2020, the market absorbed 6.41 million square feet, 3.05 million square feet was absorbed within manufacturing space and 2.98 million square feet was leased in South Carolina warehouses. Despite 7.64 million square feet of construction deliveries this year, the overall annual vacancy rate in South Carolina industrial properties decreased from 7.29% during the fourth quarter of 2019 to 7.22% this quarter. There are also 28 buildings totaling 5.51 million square feet under construction and 39 buildings proposed to be built which will add approximately 7.61 million square feet throughout the state upon completion. The South Carolina triple net weighted market rental rate for the remaining available industrial space increased 5.59% over the past year and averaged $4.53 per square foot at year-end 2020.
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