Rising construction prices will lead to higher lease rates
- Overall absorption totaled 5.5 million square feet during the first quarter of 2021
- Market lease rates are expected to continue to rise making speculative development more feasible
- South Carolina vacancy rate dropped from 16.9% from the first quarter of 2018 to 6.3% during the first quarter of 2021 despite new construction deliveries
Throughout South Carolina, new industrial construction has increased to meet demand; however, rising prices of construction materials have created a mismatch between market rents and true occupancy cost. Overall lease rates throughout the state are expected to increase over the next few quarters. There are currently 10.5 million square feet under construction, 5.1 million of which is slated to be delivered this year.
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