During the first quarter of 2013, the Charleston market continued to see modest growth. The defense contractor’s network of companies, the area’s largest employers, saw sequestration continue with cuts in the Department of Defense spending. This tempered the requirement and need for the flex warehouse product. The expected cuts were somewhat offset by growth in the warehousing sector, particularly with port container volume increasing along with construction and manufacturing. Leasing activity was steady with rental rates inching up for the first time in many years. Vacancy rates dropped to 10.6%, from the 2012 year end of 10.9%. New construction pricing, although limited in the industrial market, is seeing slight increases due to some material and labor costs on the rise. Land pricing in a few industrial parks remains stable but interest has picked up in recent weeks. Project activity has increased with our local and regional economic development organizations seeing an uptick in visitations.
Source : Cushman & Wakefield