Charleston Industrial Market Report

Near-term vacancy spike overshadows long-term prospects. Preceded by a span of sub-3 percent vacancy, Charleston noted a wave of speculative project starts last year that will impact fundamentals during 2024. In Summerville and Ridgeville, a significant number of 200,000-square-foot properties are scheduled for completion, most of which were without a tenant as of February. The metro’s vacant stock is forecast to more than double this year as result. These spaces, however, are poised to secure commitments beyond this year as port and manufacturing tailwinds favor a positive long-term demand outlook. Currently, an intermodal yard is being built near the Port of Charleston that will be utilized by CSX and Norfolk Southern come summer 2025. Port activity should also be aided by the U.S. Supreme Court’s recent decision to not hear a dispute between South Carolina and dockworkers at Charleston’s Leatherman Terminal, ending a disagreement that previously limited operations at the facility. Inland, demand among ancillary firms in Berkeley County may grow as Redwood Materials is expected to break ground on a $3.5 billion battery recycling plant.