Industrial Insights V1 2025 FINAL 4.28.25 - Flipbook - Page 3
Charleston’s industrial market is navigating
a de昀椀ning chapter shaped by remarkable
growth, strategic investment, and the realities
of a maturing cycle. What was once a tight,
high-demand landscape has entered a
period of recalibration, as years of bullish
development activity converge with a slower
leasing environment and a more measured
pace of absorption. At face value, the numbers
are striking: vacancy has climbed to 17.3%, a
signi昀椀cant leap from the historically low levels
(2.0% Q1 2022). But the story is more nuanced,
and far more promising, than the data alone
suggests.
The past several years have been characterized
by surging demand, driven by pandemic-era
DID WE GET HERE?
01 HOW
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& REBOUND
02 RESET
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MARKET STATS
03 CHARLESTON
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DELIVERED PROJECTS
04 RECENTLY
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CONSTRUCTION
05 UNDER
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PROJECTS
06 PROPOSED
Page 38
INDUSTRIAL TEAM
07 L&A
Page 46
supply chain shifts, e-commerce acceleration,
and the emergence of Charleston as a key
Southeastern logistics hub. Developers,
drawn by strong fundamentals and long-term
tailwinds, responded with con昀椀dence. Capital
was 昀氀owing (and cheap), infrastructure was
expanding, and Charleston’s industrial
identity was evolving beyond traditional
warehousing. This gave rise to a bold
construction cycle, one that ultimately
delivered more space than the current market
can absorb.
Despite all of this, Charleston’s industrial
appeal is not 昀氀eeting. The Port of Charleston
continues as the region’s economic engine,
with infrastructure enhancements like the
Leatherman Terminal and upcoming neardock rail facility reinforcing our long-term
competitiveness. The market’s geographical
reach (100 million consumers within a day’s
drive) positions it for continued relevance
in the distribution networks of national and
global tenants alike.
Today’s elevated vacancy is not a re昀氀ection of
declining interest, it is the result of developers
believing in Charleston’s potential. And that
belief, while momentarily ahead of demand, is
not misplaced. With construction stabilizing,
tenant activity returning, and long-term
drivers still intact, this current phase is less a
downturn and more a reset. An opportunity
for the market to catch its breath before the
next stage of growth unfolds.
As we explore how we got here, what
happens now, and what’s taking shape on
the ground, one truth is clear: Charleston’s
role as a premier industrial market is not in
question, it’s simply in progress.
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