Industrial Insights V1 2025 FINAL 4.28.25 - Flipbook - Page 13
Leasing slowed, absorption faltered, and vacancy spiked, not because Charleston lost its
appeal, but because the conditions that once fueled growth had started to evolve. E-commerce
demand cooled from its pandemic peak. Interest rates surged, prompting capital to pull back
and tenants to delay decisions. And in many cases, the right users were still out there, but not
yet ready to sign. The result: a market 昀氀ush with modern space, waiting for the next wave of
occupiers to catch up.
DEMAND
SHIFT
LAG IN TENANT
INTEREST
E-commerce cooled postCOVID, and some major
players hit pause on new
facilities. At the same time,
larger users were slower to
commit, resulting in large
big-box availabilities.
The “right tenants” for
this new product are still
in the market, but leasing
cycles lagged behind
construction. Developers
bet on demand that may
still materialize, but not on
their optimal timeline.
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