Economic Pressures of Industrial Construction in the Charleston Area | Business

The Charleston area’s industrial real estate market has seen tenants snap up 2.2 million square feet despite rising interest rates and a cooling economy, according to a new report.

As everyone said colliers, 3.7 million square feet of new space came online in the first three months of the year. Vacancy rates also rose, but remained at a historic low of 3.74 percent despite new construction.

Starting in early 2021, the market would average 1.6 million square feet per quarter, the commercial real estate firm said in its analysis. “This is largely supported by warehouses to expand the advanced manufacturing sector, especially the production of internal combustion and electric vehicles, and third-party logistics.”

Those business sectors will continue to push for more real estate demand in the coming months, the report said. About 11.8 million square feet of industrial space is under construction in the tri-county region.

of Port of Charleston In recent months, post-pandemic consumer spending on services and experiences is still the main driver, although freight volumes have slowed over imports. Inflation has mimicked last year’s trend of higher spending on items such as home appliances and electronics.

Planning by ZEB Metals It was the biggest industry announcement of the quarter to build an aluminum recycling plant in the Goose Creek area of ​​US Highway 52, Collier said. The $80 million project is expected to create jobs for 28 citizens.

Next in line for the project was a $49.9 million cold storage warehouse based in Charleston. FlexCold He plans to build along Patriot Boulevard in Dorchester County. The 151,600-square-foot building on 51 acres is expected to create 59 jobs.

A separate report by Avison Young The average annual base rent for Charleston-area industrial properties reached $8.89 per square foot in the first quarter and is expected to continue rising on the back of strong demand.

“As large tenants move into the Charleston market, demand for industrial space has increased,” the company’s local office said. “The average building size planned for delivery in 2023 is 346,000 square feet. Based on construction activity, this number is expected to rise to 540,000 square feet in 2024.”

of Palmetto Business Park North Charleston and the Somerville region along Interstate 26 continue to be the hottest spots for industrial construction, with a total of 42.7 million square feet of space — about two-thirds of the market’s total.

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An economic development trade publication reports that South Carolina is the seventh-best state in the nation for attracting industrial investment.

The standard is included in Site selectionAnnual Cup of Prosperity A list that measures the effectiveness of each state’s economic development efforts.

The Palmetto State moved up one spot in the magazine’s 2023 rankings. Neighboring states Georgia and North Carolina ranked first and second.

The focus on electric vehicles and the batteries that power them has helped SC Department of Commerce In the year 120 businesses and expansions representing more than $10.27 billion in investments in 2022 – a record year for economic development in South Carolina and an 80 percent increase in 2021.

The new deals promise to create 14,083 jobs over time, with most of the activity centered on plants in the Charleston region and Upstate.

Packed

South Atlantic Canners It is spending $28.7 million on a multi-year expansion at the Lee County site that will create 15 jobs over the next five years.

The company is managed by Coca-Cola Consolidated Inc.The largest independent coca cola Produces and bottles more than 300 beverage brands in the United States with distribution to 14 states and Washington, D.C.

South Atlantic Kanders plans to renovate its existing Bishopville facility and add new state-of-the-art equipment. The expansion is expected to be completed by the end of 2027.

Contact David Wren at 843-937-5550 or on Twitter at @David_Wren_