(Logo Courtesy of Colliers)
Surging growth in Greenville-Spartanburg, bolstered by relative affordability, strong logistics connectivity and rapid workforce growth, drove South Carolina's industrial market as the state continues to emerge from a 2024 slowdown, according to a 25 Q3 industrial report from Colliers.
Simultaneously, Colliers said new growth markets are emerging on developers' radar as Columbia's Class A absorption and manufacturing-heavy pipeline are driving rent growth, while a population boom in Myrtle Beach is generating new industrial opportunities.
Key takeaways from the report:
* South Carolina has maintained a competitive advantage for a new wave of manufacturing projects.
* The Greenville-Spartanburg market has led absorption while Columbia and Myrtle Beach show signs of growth.
* Power generation capacity remains a strategic challenge as new plants remain in planning.
Colliers said that across the state, vacancy has fallen 144 basis points from its 2024Q2 peak of 10.90 percent, though elevated availability in Charleston remains an anchor.
It added that after an initial slowdown, South Carolina's competitive advantages supported a Q3 uptick in manufacturing announcements including Scout Motors' $300M Columbia supplier park, Volvo's Ridgeville production expansion and Woodward's $200M Spartanburg aerospace components plant.
Colliers also said that leadership changes at the SC Ports Authority suggest a refreshed approach to high-priority logistics infrastructure.
According to Colliers, industrial inventory grew to 527,064,012 square feet statewide, with warehouse and distribution space representing roughly 70 percent of inventory and 81 percent of all vacancy.
Vacancy continues to creep downwards to 9.46 percent, though it remains above the Southern average of 8.5 percent.
Net absorption was strong at 5,454,723 square feet, pushing the year to a total of 12,803,130 square feet absorbed primarily in the Upstate.
A shrinking construction pipeline of 11,843,787 square feet leans towards build-to-suit projects, placing growing demand pressure on the Columbia and Greenville-Spartanburg markets, Colliers said.
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