CRANE TRACKER CHARLESTON - Q4 - Lee & Associates Charleston
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Q4
2020
CHARLESTON
CRANE
TRACKER
Monitoring Development in
Charleston’s Industrial
Commercial Real Estate Market
960 Morrison Drive, Suite 400
Charleston, SC 29403
843.747.1200
lee-charleston.com
1
When looking at the current state of the As a quick example, DHL bought 40 acres of land
Charleston-area industrial real estate market, it to build a Charleston-area 1.7M SF distribution
is important to recognize its sustained growth. center in early 2020 and cited the Port of
For the past several years, developers have Charleston as motivation for its decision. With
been consistently building out Charleston’s vacancies remaining lower than 6.5% and many
industrial portfolio, first with a focus on projects underway, the Charleston industrial
purpose-built projects, and as of late, a shift market has continued to thrive.
to speculative development has taken hold
(over 1M SF of speculative industrial currently All told, the factors at play lead to an increasingly
under construction). This shift, combined with friendly market for industrial real estate:
the market’s historical growth, is generating high supply, high demand, and a plethora of
momentum on all fronts as investment interest is supporting drivers that feed both.
up and port volumes are higher than ever.
With that momentum comes fierce leasing activity According to industry experts, there is a
and new development that is expected to continue significant amount of global investment capital
as firms look to take advantage of tax breaks and slated to re-emerge in 2021 - to the tune of
quick access to the expanding port. $200 billion dollars projected to be deployed.
And although the pandemic has ravaged many
“ 01 Charleston Market Overview: Page 04
commercial real estate sectors, the industrial
market continues to thrive and attract enormous
interest. By all accounts, this will be an
active year for commercial real estate and
02 its most sought after asset class nationally
2021 is about
Projections: Page 08
and in the Lowcountry. As the pandemic
reaches a turning point and business sentiment
03 Featured Listings: Page 10
returns with sweeping force, the Charleston-area
momentum
industrial market is poised to continue its run of
04 Submarket Breakdown: Page 12
high performance.
05 Completed Construction: Page 16
This report will dive into the
06 Under Construction: Page 18 causes behind Charleston-area
Lee & Associates takes a look at the state of industrial market’s success, and
the Charleston-area industrial market, and
07 Proposed Construction: Page 20
explore ongoing activity
why this coming year could be the catalyst
for a brighter future 08 BTS Construction: Page 24
09 Industrial Market Experts: Page 28
LETS GET STARTED...
2 3
Q4 2020 Market Highlights
DEEPEST ON THE EAST COAST
Charleston Harbor Deepening Project on track for 2022
The Charleston Harbor is slated to acheive 52’ depth by mid-2022. This significant
6.44% 1,005,962 SF
infrastructure improvement will make the harbor more suitable for mega-ships and VACANCY UNDER
will help establish better connections to global markets. CONSTRUCTION
BOEING BETS ON CHARLESTON
Boeing to consolidate all 787 Dreamliner production
The aircraft manufacturer will move all assembly of the 787 Dreamliner jet to South
Carolina, in an effort to streamline operations.
-227,669 SF 50,980 SF
NET ABSORPTION CONSTRUCTION
WALMART BREAKS GROUND DELIVERIES
Dirt has officially been moved on the 3M SF facility
Walmart is investing $220 million to build the direct import distribution center, creating
1,000 jobs. The project, which will take approximately 14 months to build, will boost
port volumes by 5% and be one of the largest Walmart hubs in the entire country.
HARDY WORLD ENTERS THE MARKET $7.83 73,430,485
Developer brings small-scale, Class-A space into the mix AVG. ASKING RENTAL TOTAL
Hardy World, a private equity real estate developer, has begun construction on its RATE SF
47,500 SF project at 8439 Palmetto Commerce Parkway. This facility can accommodate
full-building users or space as small as 5,250 SF.
4 5
A POSITION OF PROMINENCE
Charleston-area industrial market has weathered the pandemic valiantly
1/3 $392M 63% of
of US population in business workforce has
within 1-day investments higher education
One of the driving factors behind the
Charleston-area industrial market’s relative
immunity to pandemic-related struggles is
the strong performance by SC Ports.
60+ FTZ TAX
global auto designations
In December 2020, SC Ports finished its incentives
best December on record as it handled OEMS
209,606 TEU at the Wando Welch and
North Charleston terminals. And as 2021
Beyond the strength of SC Ports, the
unfolds, these records won’t stand for long:
Charleston region consistently outperforms
SC Ports is on track to deliver several major
the state and nation in terms of economic
infrastructure projects including the $1B
Hugh Leatherman Terminal completion SC Ports output and opportunity. Its location and
At-A-Glance
logistical advantages, major economic
by March 2021, along with the Harbor
drivers (Automotive, Aerospace and
Deepening Project, which will deepen the
Manufacturing), and the business-friendly
Charleston Harbor to 52 feet in 2021. 11.6% environment continue to spark demand for
Increase Y-O-Y
December TEU Charleston-area industrial real estate.
With the April 2022 delivery of Ridgeville’s
3M sq. ft. Wal-Mart distribution center, which
is anticipated to drive port volumes 5% alone,
$2.6B
the importance of these capital expediture In planned capex
projects and the port as an economic driver is
crucial.
52ft
harbor depth in 2021
6 7
LOOKING AHEAD
The global success of industrial real estate as
an asset class isn’t a statistical or a nominal
phenomenon. Instead, it is driven by a
fundamental shift in consumer behavior. The
Charleston market follows this sentiment
perfectly and while we expect industrial real
estate to remain robust in 2021, there are a
handful of trends that are sure to impact the
segment including cold storage, e-commerce,
manufacturing and continued port growth.
Cold Storage
Boom
E-Commerce
Intensifies
Manufacturing
Resurgence
Port Growth
Continues
“
The cold storage industrial The pandemic didn’t create the As the industry evolves to As the world re-enters a more
segment has always played e-commerce revolution, but it meet new market challenges, friendly economic cycle and
a crucial role in the U.S. food entrenched and accelerated the demand and opportunities, industrial demand continues to
supply chain, and this concept pre-existing trend with force. manufacturing interest has strengthen, the Charleston-area is CHARLESTON IS READY
has never been more true become renewed in a handful of positioned favorably to leverage
following the pandemic-fueled
demand for perishables.
Increased consumer demand for
next-day and same-day shipping
sectors. one of the world’s fastest growing
and most competitive ports. TO CAPITALIZE ON THESE
will continue to cause online Medical manufacturing, brought
Add in the potential temporary
need for vaccine-related space,
retailers to occupy distribution
hubs within close proximity
about by the rise of COVID-19,
is expected to grow, along with
With over $2 billion in planned
capital expenditures currently
TRENDS AND CONTINUE
TO GROW AS A GATEWAY
and the outlook on cold storage to their customers. Last mile aerospace and automotive underway, SC Ports is solidified as
investment and activity remains facilities and distribution hubs manufacturing related to Boeing, Charleston’s main economic driver
bullish. will continue as sought-after Volvo, and Mercedes. for years to come.
assets in the Southeast.
INDUSTRIAL MARKET
8 9
FEATURED
LISTINGS
Here at Lee & Associates, we
are proud to play an integral
role in the amplification of the 7054 WEBER TRIAD PORT CITY
Charleston industrial market. BLVD DEVELOPMENT CENTRE
Our firm’s listings embody the
Pristine, big-block, Class-A Class-A industrial-flex space in Class-A industrial facility that
state of the market: new, in-
demand, and adaptive to the warehouse space ideally a prime logistical location that is part of 189 acre master
ever-changing landscape. located within Palmetto can accommodate sizes planned development in
Commerce Park in Ladson, SC ranging down to 5,250 SF Summerville, SC
To the right is just a sampling
of some available, Class-A Address: 7054 Weber Blvd, Address: 8439 Palmetto Address: 334 Port City
properties that we currently Ladson, SC Commerce Pkwy, Ladson, SC Centre Drive, Summerville, SC
represent in the Charleston area. Size: 298,352 SF Size: 5,250 - 47,500 SF Size: 117,000 SF
Class: A Class: A Class: A
Land Area: 31.62 acres Land Area: 4.83 acres Land Area: 13.75 acres
Learn more about our available properties
10
SUBMARKET OVERVIEW
Q4 INDUSTRIAL STANDINGS BY SUBMARKET *10,000 SF AND ABOVE
YTD Net YTD Under
Submarket Total Total SF Direct % Quoted
Absorption Deliveries Construction
Building Vacant SF Vacancy Rates
SF SF SF
1 Daniel Island 53 4,784,282 485,920 10.16% 101,080 0 0 $8.88
Dorchester
145 8,222,789 870,996 10.59% -505,397 40,000 55,952 $6.29
2 County
Downtown
59 1,642,941 27,995 1.70% -9,196 0 0 $13.50 2 6
3 Charleston
Mt. Pleasant/
4 25 679,005 25,645 3.78% 0 0 0 $11.38
Awendaw
North 5
5 523 29,226,219 1,813,159 6.20% 84,579 0 47,500 $8.52
Charleston 1 4
Outlying 7
6 219 27,289,086 1,453,011 5.32% 95,571 10,980 902,510 $5.33 3
Berkeley County
7 West Ashley 26 564,263 37,330 6.62% 0 0 0 $8.25
8
West Charleston
8 35 1,021,900 15,530 1.52% 5,694 0 0 $9.50
County
Market Total 1,085 73,430,485 4,729,586 6.44% -227,669 50,980 1,005,962 $7.83
12 13
NEW &
UPCOMING
ACTIVITY
COMPLETED CONSTRUCTION 11
RIDGEVILLE
1 Port City Centre - Building 1 3 7054 Weber Drive
6 7
2 Portside Distribution Center 4 A&R Logisitcs
4
12 2
3
1
5
6
UNDER CONSTRUCTION 1 2
4
5
3 GOOSE
1 Triad Development 3 The Berkeley County Tradeport 8 4 9 CREEK
1
2 Port City Centre - Building 2 4 Meadwest VACO Bldg. III SUMMERVILLE 10
2
7
LADSON 3 HANAHAN
1 3 4
PROPROSED CONSTRUCTION 2 8
1 1056 Business Park Road 5 Omni Industrial Campus
2 Bellwright Road 6 Cold Storage Facility NORTH
3 Barkley Palmetto Parkway 7 Logistics Park Camp Hall CHARLESTON
4 North Pointe Commerce Park 8 Palmetto Commerce Park MOUNT
WEST PLEASANT
ASHLEY
BUILD-TO-SUIT CONSTRUCTION
1 McQueen Industrial 7 Highway 78 Phase II
2 6850 Weber Blvd 8 McQueen Industrial
3 McQueen Industrial 9 Trade Center Parkway
4 Portside Distribution Center 10 Charleston Trade Center
5 1130 Newton Way 11 DHL Commerce Park
6 635 Omni Industrial Blvd 12 Wal-Mart Distribution Center
14 15
COMPLETED CONSTRUCTION
50K+ SF
1 PORT CITY CENTRE | BUILDING 1
311 Port City Centre Drive
Summerville, SC 29483 (Berkeley County)
4 A&R LOGISTICS
0 Gallaird Road
Moncks Corner, SC 29461 (Berkeley County)
Building Type: Distribution Building Type: Distribution
Status: Delivered Q1 2021 Status: Delivered Q2 2020
RBA: 50,000 SF | 0% Leased RBA: 615,000 SF | 100% Leased
Asking Rate: $6.50/NNN Land Area: 11.21 Acres
2
PORTSIDE DISTRIBUTION CENTER
140 Portside Drive, Bldg. 1
Summerville, SC 29483 (Dorchester County)
Building Type: Distribution
Status: Delivered Q3 2020
RBA: 190,000 SF | 0% Leased
Land Area: 31 Acres
Asking Rate: $6.50/NNN
3
7054 WEBER DRIVE EXPANSION
7054 Weber Drive
Ladson, SC 29456 (Charleston County)
Building Type: Distribution
Status: Delivered Q3 2020
RBA: 298,352 SF | 0% Leased
Land Area: 31.62 Acres
Asking Rate: $5.75 - $6.75/NNN
16 17
UNDER CONSTRUCTION
50K+ SF
1
TRIAD
8439 Palmetto Commerce Parkway
Ladson, SC 29456 (Charleston County)
3 THE BERKELEY COUNTY TRADEPORT
0 Jedburg Road
Summerville, SC 29486 (Berkeley County)
Building Type: Distribution Building Type: Distribution
Status: Delivers Q3 2021 Status: Delivers Q2 2021
RBA: 47,500 SF | 0% Leased RBA: 247,830 SF | 0% Leased
Land Area: 4.83 Acres Land Area: 498.94 Acres
Asking Rate: $10.50/NNN Asking Rate: $5.25/NNN
2 4
PORT CITY CENTRE | BUILDING 2 MEADWEST VACO BLDG. III
334 Port City Centre Drive 300 Trade Zone Blvd
Summerville, SC 29483 (Berkeley County) Summerville, SC 29483 (Berkeley County)
Building Type: Distribution Building Type: Distribution
Status: Delivers Q4 2021 Status: Delivers Q2 2021
RBA: 117,000 SF | 0% Leased RBA: 537,680 SF | 0% Leased
Land Area: 13.75 Acres Land Area: 118.73 Acres
Asking Rate: $5.95/NNN Asking Rate: $4.75/NNN
18 19PROPOSED CONSTRUCTION
50K+ SF
1 3
1056 BUSINESS PARK ROAD BARKLEY PALMETTO PARKWAY
1056 Business Park Road Palmetto Commerce Parkway
Summerville, SC 29483 (Berkeley County) Ladson, SC 29456 (Charleston County)
Building Type: Flex/Distribution
Building Type: Flex
Status: Proposed
Status: Proposed RBA: 80,000 SF
RBA: 50,000 SF Land Area: 8.6 Acres
SOUTHWIND LAND LLC
2 BELLWRIGHT ROAD
Summerville, SC 29483 (Dorchester County) 4 NORTH POINTE COMMERCE PARK
North Pointe Industrial Blvd - Site 2
Hanahan, SC 29410
Building Type: Distribution Building Type: Distribution
Status: Proposed Status: Proposed June 2022
RBA: 65,000 SF RBA: 125,000 SF
Land Area: 70.56 Acres Land Area: 10.12 Acres
20 21PROPOSED CONSTRUCTION
50K+ SF
5 OMNI INDUSTRIAL CAMPUS
259 Drop Off Blvd - Pad 4
Summerville, SC 29483 (Berkeley County)
7
LOGISTICS PARK CAMP HALL
114 Three Point Drive, Bldgs A-C
Ridgeville, SC 29472 (Dorchester County)
Building Type: Distribution Building Type: Distribution
Status: Proposed Status: Proposed
RBA: 220,000 SF RBA: 220,774 - 504,010 SF
Land Area: 20.6 Acres Land Area: 75 Acres
6 8
FREEZER/COLD STORAGE FACILITY PALMETTO COMMERCE PARK
Autonomous Drive Palmetto Commerce Parkway
Ladson, SC 29456 (Charleston County)
Building Type: Cold Storage Building Type: Flex/Distribution
Status: Proposed Status: Proposed
RBA: 200,000 expandable to 400,000 SF RBA: 800,000 SF
Land Area: 67 Acres Land Area: 56.5 Acres
22 23BUILD-TO-SUIT CONSTRUCTION
50K+ SF
1 4
MCQUEEN INDUSTRIAL PARK PORTSIDE DISTRIBUTION CENTER
144 Innovation Drive 168 Portside Park Drive
Summerville, SC 29483 (Dorchester County) Summerville, SC 29483 (Dorchester County)
Building Type: Distribution Building Type: Distribution
Status: Proposed BTS Status: Proposed BTS
RBA: 50,000 - 100,000 SF RBA: 190,000 SF
Land Area: 4.5 Acres Land Area: 31 Acres
2 5
6850 WEBER BLVD 1130 NEWTON WAY
6850 Weber Blvd 1130 Newton Way
Ladson, SC 29456 (Charleston County) Summerville, SC 29483 (Dorchester County)
Building Type: Distribution Building Type: Distribution
Status: Proposed BTS Status: Proposed BTS
RBA: 118,510 SF RBA: 265,000 SF
Land Area: 80.89 Acres Land Area: XX Acres
3 6
MCQUEEN INDUSTRIAL 635 OMNI INDUSTRIAL BLVD
0 International Circle 635 Omni Industrial Blvd
Summerville, SC 29483 (Dorchester County) Summerville, SC 29483 (Dorchester County)
Building Type: Distribution Building Type: Distribution
Status: Proposed BTS Status: Proposed BTS
RBA: 125,000 SF RBA: 265,000 SF
Land Area: 7.76 Acres Land Area: XX Acres
24 25BUILD-TO-SUIT CONSTRUCTION
50K+ SF
7
HIGHWAY 78 PHASE II
Ladson, SC 29456 (Charleston County) 10 CHARLESTON TRADE CENTER
180 Trade Center Parkway - Bldgs 3-5
Summerville, SC 29483 (Dorchester County)
Building Type: Distribution
Building Type: Distribution
Status: Proposed BTS
Status: Proposed BTS
RBA: 310,128 SF
RBA: 1,017,647 SF
Land Area: 107 Acres
Land Area: 38.14 Acres
8 11
MCQUEEN INDUSTRIAL DHL COMMERCE PARK
0 Hodge Road 101 Winding Woods, Bldgs A-C
Summerville, SC 29483 (Dorchester County) Saint George, SC 29477
Building Type: Distribution Building Type: Distribution
Status: Proposed BTS Status: Proposed BTS
RBA: 500,000 SF RBA: 1,742,720 SF
Land Area: 38.27 Acres Land Area: 34.4 Acres
9 12
TRADE CENTER PARKWAY WAL-MART DISTRIBUTION CENTER
Tract 1A 440 Ridgeville Road
Summerville, SC 29483 (Dorchester County) Ridgeville, SC 29472 (Dorchester County)
Building Type: Distribution Building Type: Distribution
Status: Proposed BTS Status: Delivers Q2 2022
RBA: 1,205,100 SF RBA: 3,000,000 SF
Land Area: 95.26 Acres Land Area: 250 Acres
26 27INDUSTRIAL EXPERTS
Lee & Associates industrial team: where insight and execution converge 390,438 SF 415,137 SF
TOTAL INDUSTRIAL SQUARE FEET SOLD TOTAL INDUSTRIAL SQUARE FEET LEASED
2020 2020
$52.68M 3M+ SF
MILTON THOMAS, CCIM, SIOR | MANAGING PRINCIPAL
Milton is a twenty-nine year veteran of the commercial real estate industry in Charleston, SC. He
leads commercial site selection and build-to-suit projects with integrity and a high degree of
UNDER LEASING
expertise and accountability. He has earned a solid reputation in the industrial market by listening INDUSTRIAL TRANSACTION VOLUME
to his clients and guarding their interests. Milton gets to know his client’s business, their market & SALES SERVICES
2020
and their goals, leading them to the best decisions for their needs.
RYAN WELCH, SIOR | PRINCIPAL
Ryan has experience and expertise encompassing the management of a diversity of commercial
real estate types including land and industrial properties. Ryan has extensive agriculture experience WESTON BRADLEY | ASSOCIATE
with land and timber tracks, as well as sales of industrial buildings for landlords throughout the
state of South Carolina. After completing the Transitional Researcher program with the firm, Lee & Associates welcomed
Weston to the Industrial Brokerage Team in 2019. Along with land sales, he focuses on sales and
leasing of industrial properties in South Carolina. In 2016, after graduating from The University of
the South with an Economics degree and a concentration in Mathematics, he decided to make
Charleston home. Weston currently holds a real estate license in South Carolina.
THOMAS BUIST, SIOR | VICE PRESIDENT
Thomas specializes in sales and leasing of industrial and warehouse inventory. He offers over 30
years of experience in industrial commercial real estate as a state-licensed broker and is a past
South Carolina licensed appraiser. Thomas is a native of Charleston, South Carolina, giving him an
JOHN KINCAID, CCIM | ASSOCIATE
exceptional range of personal and business contacts to draw upon. Thomas also has expertise in John comes to Lee and Associates with several years of development experience. He graduated
ports, 3PL, bulk commodities, intermodal and land acquisition/assemblage. from Clemson University with a Master’s Degree in Real Estate Development. As VP of Development
for R.M. Thomas Co., Inc. for two years, John researched and composed project financials, debt/
equity structures, market analysis, site selection, zoning entitlements and project design. John has
worked on hundreds of multifamily, office and retail deals all over the US in major markets.
JON-MICHAEL BROCK | VICE PRESIDENT
Jon-Michael joined Lee’s Industrial Brokerage Team in 2018, where his primary focus is the sales
and leasing of single tenant and multi-tenant industrial properties. Jon-Michael has represented THOMAS FAWCETT | ASSOCIATE
sales & leasing of both national/local landlords and tenants. He graduated from the College of
Charleston. Thomas Fawcett is an Associate at Lee & Associates Charleston. As an Associate, he specializes
in industrial real estate with a focus on investment sales and leasing throughout the State of
South Carolina. Thomas joined the brokerage team after a 2019 summer internship with the
firm followed by a year as a Transitional Researcher. As a Transitional Researcher, he learned
to develop agency sales and leasing plans for all product types based upon current market
conditions, occupancy levels, capital budgets, and disposition strategies catered to the specific
ALEX POPOVICH | VICE PRESIDENT objectives of individual clients.
Alex is a Vice President at Lee & Associates Charleston where he specializes in Class A industrial
as well as office, land, and retail leasing and sales, representing both landlords and tenants. He
has over 7 years of commercial real estate experience in Charleston and has completed numerous ASHLEY LUCAS | INDUSTRIAL CLIENT SERVICES SPECIALIST
transactions throughout the country after graduating from the College of Charleston. As the Industrial Client Services Specialist, Ashley assists the industrial agents in all aspects of
selling/leasing and buyer/tenant rep assignments. She performs in-depth market research,
prepares important documentation, manages files, and coordinates the entire listing process from
start to finish. Ashley also carries out various public relation’s tasks and all aspects of marketing.
CLARKE ATTAWAY | ASSOCIATE
Clarke joined Lee’s Industrial Team in 2019 after serving as a Transitional Researcher with the firm.
He focuses on sales and leasing of industrial properties. Prior to joining Lee, Clarke lived in Austin,
Texas where focused on single-tenant industrial properties.
28 29Q4
2020
CHARLESTON
CRANE
TRACKER
ained herein from sources we deem to be reliable; however, we have not verified the accuracy or suitability of
ake no guarantee, warranty or representation with regard to said information. This information is submitted
or omissions; change in price, rental, or other conditions; prior sale or lease; and/or withdrawal from the
ons, opinions, assumptions, and estimates included herein are for example only; these examples may not
ce of the subject property. We hereby advise any party interested in the subject property to seek tax and/
e’s own investigation of the subject property and any contemplated transaction thereon.
400 | Charleston, SC 29403 | 843.747.1200 | lee-charleston.com
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