It was a busy year for industrial construction in Charleston region
More than 6.3 million square feet of industrial space was added to the Charleston region’s commercial real estate portfolio in 2018, one of the area’s busiest years for construction of warehouses and distribution centers.
The new space is more than four times the historical average for industrial construction region-wide, according to Cushman & Wakefield|Thalheimer.
“Sales volume reached more than $250 million in 2018, well above a typical year in Charleston,” the commerial real estate firm said in its year-end market report. “Net asking rents continued to increase as well, posting a 4.4 percent annual gain to $5.56 per square foot.”
While several more projects are slated for 2019, Thalheimer says the market won’t be able to keep up last year’s hectic pace.
“Though 2019 may not see completion levels quite as high as 2018, more than 2.3 million square feet of industrial space will deliver in 2019 — well above the historical average of 1.5 million square feet,” the report states. “Market rents will stay level as recently delivered inventory is absorbed over the year.”
The Charleston region’s population — more than 775,000 residents in 2018 — is growing at three times the U.S. average, and job growth appears to be keeping pace. The area had a net increase of 9,000 jobs in 2018 as unemployment fell to 3.7 percent.
The report notes that the Charleston area accounts for one out of every five new jobs in South Carolina over the past five years.
Strong growth is expected to extend into 2019.
“Jobs are expected to post healthy gains across all sectors,” Thalheimer said. “The region is expected to have a net gain of new jobs of 1.8 percent in 2019.”