Charleston Industrial Market Report

Speculative developments loosen historically tight operations. Vacancy in Charleston fell to its lowest point on record in September of last year, as industrial users absorbed a net of over 12 million square feet in 2021 and 2022. Strong space demand during this span has encouraged the scheduled delivery of over 4 million square feet this year, and many of these projects were yet to be accounted for as of June. The recent deepening of the Port of Charleston, however, lifts the entry point’s long-term prospects. At 52 feet, the facility is now the East Coast’s deepest port, enabling it to handle ships at any tide. This capability should support cargo volumes that are elevated by historical standards, sustaining demand for proximate space further down the supply chain. These factors should help the metro retain the nation’s second-tightest vacancy rate at year-end.