MARKETBEAT

Industrial Snapshot Q1 2016

Charleston, SC

CHARLESTON INDUSTRIAL
Economic Indicators
Q1 15

Q1 16

Charleston Employment

325k

332k

Charleston Unemployment

5.4%

5.3%

U.S. Unemployment

5.6%

4.9%

12-Month
Forecast

Texas. South Carolina also maintains, proudly, the lowest union

membership in the United States at 2.1% of the states salaried
and hourly workers, as reported in the latest federal Bureau of
Labor Statistics. The Charleston economy is seeing record
growth and continues to lead the other southeastern states in job
creation. The average unemployment rate dropped again in the
Q1 16 from 5.5% to 4.7%.

Market Overview
Market Indicators (Overall, All Product Types)
Q1 15

Q1 16

Vacancy

7.9%

8.0%

Net Absorption (sf)

627k

1.2M

Under Construction (sf)

63k

3.1M

Average Asking Rent*

$4.45

$4.96

12-Month
Forecast

*Rental rates reflect net asking $psf/year

Overall Vacancy
12%
10%
8%
Historical Average = 8%
6%

The Port of Charleston cargo growth took center stage in the first
quarter 2016 by spurring new cold storage projects in the region.
Lineage Logistics LLC opened the regions largest cold-storage
warehouse, a 180,000-square-foot (sf) facility in Palmetto
Commerce Park. In addition, New Orleans Cold Storage (NOCS)
just announced the completion of an expansion moving their
operation to a 136,000-sf facility located near the gates of the
North Charleston terminal. Fruit of the Loom also expanded its
existing operation to 400,000 sf, doubling the size of their
existing warehouse. Advanced security and IT have become the
largest users of Charleston flex space in the area, particularly as
defense contractors and related firms have ranked among the
regions largest employers. With new speculative product coming
onto the market, the Charleston Industrial market vacancy rate
bumped to 8.0%. Rental rates for class A industrial product rose
to $4.96 per square foot. Net absorption ended the quarter at 1.2
million sf (msf). Industrial Investment sales increased 16% yearto-date with over one msf sold. CAP rates hovered at 7.3% on
mostly single tenant transactions.

4%

Outlook
2%
2011

2012

2013

2014

2015

1Q 16

Economy
U.S. News and World Report analyzed 100 cities in the United
States and found Charleston to be the 19th best place to live
based on quality of life and the job opportunities. In addition, the
state of South Carolina was named the Second Best Business
Climate in the country by Site Selection Magazine. The Palmetto
State received the second highest number of votes just behind
Cushman & Wakefield | Thalhimer
1 Central Island Plaza
115 Central Island Street, Suite 175
Charleston, SC 29492
www.thalhimer.com

For more information, contact:

Brad McGetrick, Director of
Brokerage Services
Tel: +1 804 697 3558
brad.mcgetrick@thalhimer.com

2016 is setting up to be an exceptional year for the industrial

market in the region. Volvo and Daimler suppliers are making
early in roads as contracts for both are scheduled to be secured
by late 2016, early 2017. Both facilities should be operational in
2018. Investment sales will also be strong as owners take
advantage higher occupancy and lease rates. Even with new
product coming onto the market rental rates will increase as
demand increases for institutional product.

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Copyright 2016 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources
considered to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its
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