Finding warehouse and industrial space has become a challenge nationwide. The COVID-19 pandemic resulted in about a decade’s worth of eCommerce growth in a single year, fueling a significant shortage in warehouse space. And, according to a recent article in the Charleston Regional Business Journal, there is also a commercial space shortage across the Charleston region.
Commercial Space Shortage Post-Pandemic
When people were forced into their homes in 2020 to stay safe from a global pandemic, their buying habits shifted drastically. COVID-19 proved disastrous for many brick and mortar retailers, but eCommerce businesses have been facing unprecedented growth.
The result is that there is a nationwide shortage of warehouse and commercial space to keep up with demand. According to CNBC, the demand for industrial real estate in the U.S. could reach 1 billion square feet by 2025.
Demand Outweighing Supply in Charleston for Industrial Space
Having businesses that want to operate in your area is a positive development. Charleston’s industrial vacancy rate as of May was less than 5%, indicating a looming shortage. The fact that Walmart’s import distribution center has relocated to Ridgeville has likely generated a lot of interest from other large businesses.
Another driver for growth is the active Port of Charleston. In fact, many businesses have shown an interest in putting their warehouse, distribution, and manufacturing operations within 30 miles of the port or major interstates.
A lof the interest in the Charleston area is coming from the northeast, where taxes are much higher. The economic climate for businesses in the Lowcountry region is incredibly favorable, with lower wage and tax rates and right-to-work laws.
One of the major development projects to watch is the 1-million square foot building in the Charleston Trade Center. Located in Summerville, this project began in 2016 and is currently well underway, including the addition of several smaller adjacent buildings.
Several other commercial projects to watch include Triad, a Class-A commercial industrial space, and Indigo, a 30,000 square-foot flex industrial and commercial building, both in North Charleston.
Charleston Commercial Real Estate Partners You Can Trust
Whether your business is looking for industrial, warehouse, retail, or office space, we can help. Caldwell Commercial Real Estate Services is Charleston’s premier provider of commercial real estate and property management services throughout the region. With more than 80 years of combined experience, our professionals are standing by to give you the qualified assistance you need. Contact us today to learn more about our services.