Charleston adds more industrial space, harbor deepening could result in even more: The deepening of the Port of Charleston harbor is a key factor in the growing demand for industrial space in Charleston, according to the Q1 industrial report from Colliers International. The region has added six new buildings this quarter, with 3.51 million square feet under construction. Rental rates, construction and net absorption are up, and vacancy is down.
If Congress approves the $138 million in federal funds in the 2020 budget, that will push the harbor project forward, “which will increase port activity and add to the logistics pipeline feeding the import/export portion of the industrial market throughout Charleston,” the report states. Charleston would then have the deepest Eastern seaport, creating an industrial hub that can accommodate larger container vessels.
The industrial market includes 54.2 million square feet of industrial inventory, and added six buildings in Q1, with 19 more under construction. Between Feb. 2018 and Feb. 2019, capital investments in the Charleston industrial market totaled over $1 billion, producing 1,852 jobs.
Large sales in Q1 included a Goose Creek Class A building Sycamore Partners purchased for $32 million and a North Charleston industrial building Brad Whitley purchased for $1.78 million.
For the remainder of 2019, “all aspects of the industrial market are expected to continue on a positive track,” the report states, including rising rental rates and new construction that will be absorbed quickly. --Leigh Savage
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