Industrial construction in Charleston area perseveres through economic challenges | Employment

The industrial real estate market in the Charleston area has remained steady in the first quarter despite rising interest rates and a cooling economy, with tenants occupying 2.2 million square feet of space. According to a commercial real estate firm’s report, the vacancy rate has increased, but it remains at a historically low level of 3.74%. The warehouse and third-party logistics activity are on the rise to support the advanced manufacturing sector, making the business sector an essential driver of the real estate demand. Construction of approximately 11.8 million square feet of industrial land is still under progress in the three-county areas.

The Port of Charleston remains an essential driver, even though cargo levels have dropped in recent months. The reduction is due to consumers spending more money on services and experiences than on imported goods post-pandemic. The average annual base rent for industrial land in the Charleston area has increased to $8.89 per square foot in the first quarter, which is expected to continue rising.

The South Carolina Department of Commerce has solicited 120 companies and expansions focused on electric vehicles and the batteries that power them, with investments reaching over $10.27 billion by 2022. This marks an 80% increase from the previous target set for 2022.

South Atlantic Canners, operated by Coca-Cola Consolidated, Inc., plans to spend $28.7 million on a multi-year expansion of its Lee County site that will create 15 jobs. The expansion is expected to be completed by the end of 2027.

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