1Q17 Charleston MSA Industrial Market Snapshot
As expected, Charleston’s industrial market continued to thrive entering 2017. The constant success of the region’s major industry sectors, enhanced by the pro-business policies of a new presidential administration, has allowed for continual creation of attractive opportunities for investors, businesses and developers alike.
The vacancy rate of industrial/flex buildings decreased to 5.5% from 5.9% at the end of the 4Q2016. As vacancy lowers, rental rates rise, reaching $15.48 per square foot (PSF) for flex space and $5.17 PSF for warehouse space at the end of 1Q17. Relentless demand for flex/warehouse space of all sizes is driving consistent speculative construction. This is the first time in years that multiple flex projects, offering ±2,500-5,000 square foot (SF) units, are simultaneously under construction.
Six industrial buildings totaling ±292,002 SF were delivered to the market during the first quarter, while ±6,836,406 SF remain under construction. An approximate ±1,953,353 SF is expected to be delivered to the market by the end of 2Q17.
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