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INDUSTRIAL MARKET REPORT

Q1 MARKET SNAPSHOT

Q1 CONSTRUCTION & DELIVERIES

Q1 TRENDS & HIGHLIGHTS

• URBANIZATION IS SPREADING TO HISTORICALLY RURAL AREAS.

• OVERALL VACANCY RATES DROPPED FROM 16.50% IN Q4 TO 15.80% AT THE END OF Q1.

• SC PORTS ACTIVITY UP OVER 18% IN MARCH AFTER SLOW START TO THE YEAR.

• SHALLOW BAY IS STILL A STRONG FAVORITE AMONGST INVESTORS AND DEVELOPERS.

• SMALL LOCAL USERS ARE BEING PRICED OUT OF THE MARKET.

CHARLESTON’S INDUSTRIAL MARKET GAINS MOMENTUM AT THE END OF Q1

Q1 RECAP

• Urbanization is beginning to spread to historically rural areas as infrastructure along I-26 and I-95 improve, creating opportunity for service and manufacturing industries to capitalize early.

• Overall vacancy rates have continued to decline from 16.5% to 15.8% with Summerville/Jedburg seeing the greatest absorption in the market.

• After a slow start to 2026 due to an uncertainty with tariffs and conflict in the Middle East, the South Carolina Ports showed a dramatic increase of over 18% of activity in March promoting an optimistic outlook for Q2.

• Shallow Bay is continuing to be a favorite for investors and developers due to their low vacancy and quick activity on the market for smaller sizes (10,000 - 40,000 SF).

• Smaller (5,000 - 20,000 SF) local users are beginning to get priced out of the market due to lease renewals being significantly higher than those they signed for posing challenges for small businesses.

MANUFACTURING CONTINUES TO GROW IN SOUTHERN MARKETS

• A new 750,000 SF Ferrara Candy manufacturing plant has been announced in Orangeburg and is expected to bring in over 1,000 jobs in the next 10 years, offering an optimistic opportunity for continued growth and urbanization along an improving I-26 and I-95 corridor.

• Aerospace and defense-related industries remain strong as Boeing’s 1.2 million SF facility is expected to be delivered in early 2027, creating over 1,000 new jobs.

• With more job creation in historically rural areas, demand in tertiary markets is beginning to increase as prices in Charleston continue to increase.

Q2 OUTLOOK IS ACTIVE

• With costs of roofing and electrical materials set to increase by 15%, vacancy rates can expect to decrease as new deliveries may be put on pause giving the market to see below 16% vacancy rates for the first time in almost 2 years.

• With interest rates staying stagnant in Q1, local owners and investors are becoming more aggressive with purchasing opportunities.