Charleston Industrial Market Report

Vacancy retreats slightly amid softening deliveries and infrastructure upgrade. Following a brief slowdown in completions during the latter half of 2024, deliveries accelerated again in the first quarter of 2025. Fortunately, construction is set to decline sharply over the remainder of the year, likely alleviating near-term pressure on vacancy — including in northern outskirts like Berkeley and Dorchester counties, where nearly all of last year’s supply was concentrated. Looking forward, the mid-2025 opening of the Navy Base Intermodal Facility is expected to strengthen the metro’s position as a regional logistics hub by improving port-to-rail connectivity, potentially fostering greater demand for nearby industrial space. Still, a substantial share of imports at the Port of Charleston come from Northeast Asia. As such, local port volumes — and consequently logistics-related demand — could soften if tariffs on Chinese imports remain heightened. Despite this uncertainty, the market is slated to record positive net absorption in 2025, with supply and demand coming into alignment.