Issuu

INDUSTRIAL MARKET REPORT

Q2 MARKET SNAPSHOT

MARKET BULK (100,000 SF+)

OVERALL INVENTORY* 83.1 MILLION SF

INVENTORY* 59.4 MILLION SF

Q2 CONSTRUCTION & DELIVERIES

CONSTRUCTION 256,724 SF YTD DELIVERIES 873,467 SF

* 82.6 Million SF does not include 23.0 Million SF of specialized buildings.

Q2 TRENDS & HIGHLIGHTS

• SCSPA MOTHBALLS LEATHERMAN TERMINAL UNTIL CONDITIONS GET BETTER.

• ONGOING GEOPOLITICAL CONFLICTS HAVE PLACED PRESSURE ON GLOBAL SUPPLY CHAINS AND THE STRAIT OF HORMUZ CONTINUES WITH UNCERTAINTY FOR SHIPPING LINES.

• MANUFACTURING AND DEFENSE CONTRACTOR GROWTH CONTINUES IN CHARLESTON AND SOUTH CAROLINA.

• THE DEMAND FOR POWER TO OPERATE ALL INDUSTRIAL FACILITIES IS THE MOST URGENT TOPIC OF CONVERSATION.

• IOS BENEFITS FROM MANUFACTURING GROWTH AND GENERAL INFRASTRUCTURE GROWTH WITHIN REGION.

• IN LIGHT OF HIGH INDUSTRIAL VACANCY RATES, TENANTS ARE INCREASINGLY SIGNING LONG-TERM LEASES AND OCCUPYING ADDITIONAL SPACE.

CHARLESTON’S INDUSTRIAL MARKET CONTINUES TO MOVE IN A POSITIVE DIRECTION

Q2 RECAP

• SCSPA has put all activity at Leatherman Terminal on hold until shipping conditions improve and container volumes rise. Wando Welch and North Charleston Terminal will increase the workload in those facilities

• The ongoing conflict in Iran and the Strait of Hormuz has created uncertainty regarding oil access, driving volatility in operating costs for manufacturers and logistics firms. This instability complicates long-term capital investment and strategic planning.

• Despite global economic turbulence, the Charleston region continues to see job and economic growth driven by new manufacturing facility announcements and the expansion of defense contracting work.

• The demand for increased electrical capacity has surged beyond data centers, with many new manufacturing and heavy distribution facilities now prioritizing higher power specifications to accommodate future operational needs. The merger of Dominion Energy and Next Era Energy will create one of the largest energy providers in the country.

• Industrial Outdoor Supply (“IOS”) is benefitting from the airport expansion, Boeing related growth initiatives and overall needs for laydown yards and employee parking for all the various public and private construction jobs in the region.

• In line with the various conflicts in the world, the defense sector is showing signs of growth in the region with needs for manufacturing, distribution, and office requirements.

EXPANSIONS & NEW INVESTMENT COMING TO CHARLESTON

• Red Metals, a copper manufacturer, established operations in 42,216 SF of space at 4500 Leeds Avenue in North Charleston. The $70M investment will bring approximately 45 jobs to the region.

• Highway 41 in Mount Pleasant received approval for it’s road expansion project. The $250M investment will widen the majority of the road to four lanes.

• The Charleston International Airport is undergoing a $105M expansion that will add four new gates to increase terminal capacity by 15%. Construction is estimated to be completed by the end of 2026.