M A R K E T B E AT

CHARLESTON, SC
Industrial Q4 2020

YoY 12-Mo. ECONOMY: Big Hopes for the Year Ahead

Chg Forecast
2020 started out strong with an active project pipeline and high hopes for the year ahead. Then, as the COVID-19 pandemic hit the
Charleston region, CRDA quickly realized this is a year unlike any other. A focus on industry diversification have helped our three-
6.7% county region weather this global crisis and except for hospitality, our industry sectors returned in August to pre-COVID-19
Vacancy Rate
employment levels. Charleston ranks among the nation’s fastest-growing metros for job creation, forecasted to add 28,000 new
jobs in the next five years.
-640K
Net Absorption, SF
SUPPLY and DEMAND: Accelerated Demand
Investments in the Port of Charleston, the rapid rise in e-commerce due to the pandemic, and a strong manufacturing presence
$5.74 continue to drive demand in the Charleston region. Total industrial absorption in 2020 surpassed 1.0 million square feet (msf).
Asking Rent, PSF Vacancy rates ticked up slightly to 6.7%, with over 3.7 million square feet (msf) of new supply delivering during 2020, but strong
Overall, Net Asking Rent
fundamentals and the ongoing expansion of the Port of Charleston are providing the confidence needed for new projects to move
forward. Vigilent Labs is investing $104.6 million to build a state-of-the-art COVID-19 test manufacturing facility and create 400 new
jobs in Charleston County. Walmart announced plans to build a $220 million distribution center in Dorchester County. The investment
ECONOMIC INDICATORS will bring more than 1,000 new jobs to the region. A&R Logistics, North America’s leading supply chain services company to the
Q4 2020 chemical industry, opened its world-class export facility in Moncks Corner. Speculative building projects under construction include
Keith Corp’s 1.0-msf at Charleston Trade Center Park, Silverman’s 480,000-sf in International Trade, and Exeter’s 600,000-sf in
YoY 12-Mo. Camp Hall.
Chg Forecast
355.3K PRICING: Rental Rates Hold Steady
Charleston Overall asking rental rates stayed relatively stable during 2020 and ended the year at $5.74 per square foot (psf). Port-related and
Employment
e-commerce projects will continue to lead the warehouse market. Hopes of Volvo and Boeing suppliers to enter the market are
being discussed and reviewed for their future needs. Developed and undeveloped industrial and warehouse sites will increase in
4.2% value and the opportunities for new sites continue West up I-26. The sweet spots for needs will be in 30,000 to 50,000 sf, 100,000
Charleston sf and 1,000,000+ sf ranges.
Unemployment Rate

6.7% SPACE DEMAND / DELIVERIES OVERALL VACANCY & ASKING RENT

U.S. $6.00 8%
10
Unemployment Rate $5.80
$5.60
Source: BLS 5 $5.40
Millions

2020Q4 data are based on latest available data. $5.20 4%

$5.00
0 $4.80
$4.60
$4.40 0%
-5 2016 2017 2018 2019 2020
2016 2017 2018 2019 YTD 2020

Net Absorption, SF Construction Completions, SF Asking Rent, $ PSF Vacancy Rate

M A R K E T B E AT

CHARLESTON
Industrial Q4 2020
MARKET STATISTICS
OVERALL CURRENT QTR UNDER CONSTR OVERALL OVERALL OVERALL
INVENTORY OVERALL YTD OVERALL NET
VACANCY OVERALL NET CNSTR COMPLETIONS WEIGHTED AVG WEIGHTED AVG WEIGHTED AVG
SUBMARKET (SF) VACANT (SF) ABSORPTION (SF)
RATE ABSORPTION (SF) (SF) (SF) NET RENT (MF) NET RENT (OS) NET RENT(W/D)
Daniel Island 5,108,615 544,417 10.7% 136,080 -300,509 0 0 - - $8.70
Dorchester County 8,854,275 869,999 9.8% -501,497 -326,623 20,000 40,000 $4.52 - $5.89
Downtown Charleston 1,812,109 28,076 1.5% 3,804 -12,000 0 0 - - $15.32
E Charleston County 62,851 0 0.0% 0 0 0 0 - - -
East Islands/Mt Pleasant 1,022,685 86,345 8.4% -41,576 -46,395 0 0 - - $11.69
James Island/Folly Beach 480,678 0 0.0% 3,320 -12,780 0 0 - - $13.84
North Charleston 31,581,124 2,064,424 6.5% -212,152 -359,431 320,128 0 $10.69 $12.36 $11.38
Outlying Berkeley County 30,659,175 1,955,860 6.4% -34,739 2,257,251 1,535,459 459,745 $5.01 $10.00 $5.38
W Charleston County 203,074 0 0.0% 0 0 0 0 - - -
West Ashley 987,014 26,633 2.7% -6,673 -17,367 0 0 - $10.11 $10.13
West Islands 565,212 150,605 26.6% 13,510 -137,815 0 20,800 - - $11.45
CHARLESTON TOTALS 81,336,812 5,726,359 7.0% -639,923 1,044,331 1,875,587 520,545 $6.74 $10.82 $10.42

*Rental rates reflect weighted net asking $psf/year FX = Flex MF = Manufacturing OS = Office Service/Flex W/D = Warehouse/Distribution

KEY LEASE TRANSACTIONS Q4 2020 PHILIP OWENS

Vice President
PROPERTY SUBMARKET TENANT SF TYPE
+1 843 724 0100 /philip.owens@thalhimer.com
537 Omni Industrial Blvd Outlying Berkeley County 3G Distribution Services 271,580 New
9735 Patriot Blvd North Charleston Mercedes-Benz 188,631 New thalhimer.com
1031 Legrand Blvd Daniel Island World Depot 109,260 Sublease
4756 Highway 78 Dorchester County Dockside Logistics 100,000 New A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION
Cushman & Wakefield (NYSE: CWK) is a leading global real
*Renewals not included in leasing statistics estate services firm that delivers exceptional value for real
estate occupiers and owners. Cushman & Wakefield is among
KEY SALES TRANSACTIONS Q4 2020 the largest real estate services firms with approximately
53,000 employees in 400 offices and 60 countries. In 2019,
PROPERTY SUBMARKET SELLER / BUYER SF PRICE / $ PSF the firm had revenue of $8.8 billion across core services of
property, facilities and project management, leasing, capital
479 Trade Center Pky Outlying Berkeley County The Keith Corporation/Laulima Families LLC 448,765 $55,000,000/$122.56
markets, valuation and other services. To learn more, visit
4136 Carolina Commerce Pky North Charleston CCP Industrial LLC/Easterly Government 117,000 $17,000,000/$145.30
www.cushmanwakefield.com or follow @CushWake on
Properties, Inc. Twitter.
4756 Highway 78 Dorchester County Dorchester County Development 100,500 $3,675,000/$36.57
Corporation/Dockside Logistics ©2021 Cushman & Wakefield. All rights reserved. The information
contained within this report is gathered from multiple sources believed
7350 E Spartan Blvd North Charleston Spartan Boulevard Warehouse 49,500 $3,285,000/$3,600 to be reliable. The information may contain errors or omissions and is
LLC/Undisclosed
presented without any warranty or representations as to its accuracy.