Charleston Industrial Market Report

Port of Charleston’s record activity sustains standout metrics. Market conditions are easing in Charleston, albeit from a stellar sub-2 percent vacancy rate and 20-plus percent rent advance registered during 2022. Now at a record mean above $8 per square foot, higher rent may temper the volume of new commitments. Nonetheless, the metric should continue to climb at an above-average pace, as e-commerce firms and third-party logistics providers look to set up operations in the metro to capitalize on the Port of Charleston’s soaring shipping volumes. Charleston’s maritime terminals transported a historic 2.8 million 20-foot equivalent units during 2022, marking 12 out of 13 consecutive years where the transport hub reached a record volume. Significant infrastructure investments from the Port Authority — including the recent deepening of Charleston Harbor and groundbreaking of the Navy Base Intermodal Facility in North Charleston — suggest that this momentum will carry on near term, generating demand for nearby industrial facilities. Additional tailwinds could arise from the local presence of automotive giants Volvo and Mercedes-Benz, which both Redwood Materials and Bosch cited as motivators for their industrial move-ins set for this year.