Charleston Industrial Market Report
2023 Investment Forecast
Transport Volumes Surge, Ferrying in Tenant Demand and
Steering Investment Toward Northern Suburbs
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.