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CBRE
FIGURESCHARLESTONINDUSTRIALIQ42025
positiveabsorptiontrendcontinuesdespite
increasingvacancy
129%
overallvacancyRate
500K
sq.ft.NetAbsorption
880K
sq.ft.underconstruction
$8.38
warehouseAskingRate(S/sq,.Ft.NNN)
Note:Arrowsindicatechangefrompreviousquarter.
keyTakeaways
Themarketposted500,222sq.ft.ofpositiveabsorptionforthequarter.classAspaceinthel26andNorthcharleston/Ladsonsubmarketscontributedheavilytothetotal,
combiningfor489,168sq.ft
vacancyedgedupto12.9%,primarilyduetonewdeliveriesthathavenotyetbeen
leased.Recentincreasestovacancycanbeattributedtoconstructioncarryoverearlierin2025andisexpectedtostabilizeasthepipelinehascooledsubstantially.
Averagewarehouseaskingratesexperiencedaslightquarter-over-quarterdecreasebuthavegrowngraduallyyear-over-year.
Leasingactivitytotaled4.2millionsq.ft.fortheyearandwasdrivenprimarilybynew
leases.Averagedealsizeshaveseenasharpdeclineinrecentyears,signalingincreaseddemandforsmallerfootprints.
salesreboundedwith$142.7millionacross12deals,ledbyprivateinvestorsand
highlightedbyNorthpoint's$55.1millionacquisitionofAirportcommercecenterinNorthcharleston/Ladson.
▲$13.12
FlexAskingRate(S/sq.Ft.NNN)
AskingRate
FIGURE1:Historicsupply&Demandsq.ft.(millions)
5.04.O3.0
2.0
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4
llllll20212022202320242025
warehouseNetAbsorptionwarehouseAskingRate
$9.00
$8.00
$7.00
$6.00
$5.00
$4.00
$3.00
source:CBREResearch,Q42025
FIGURES|CHARLESTONINDUSTRIAL|Q42025
2?2025CBRE,INC.
MarketFundamentals
charleston'sindustrialmarketpostedavacancyrateof12.9%thisquarter,up20-basispoints(bps)fromlastquarterbutunchangedyear-overyear.Theslightincreasecanbeattributedtothe
773,280sq.ft.ofnewlydeliveredspacethathasnotyetbeenleased.whilethemarkethas
experiencedanabundanceofnewlydeliveredprojects,theconstructionpipelineisexpectedto
simmerinthecomingyear,whichshouldgivethemarketthetimeitneedstoleaseupnewproductandstabilizevacancy.
Absorptionremainedpositiveat500,222sq,ft.andwasdrivenlargelybyclassAwarehouse
activityinthel-26andNorthcharleston/Ladsonsubmarkets.Thetwosubmarketsaccountedfor489,168sq.ft.ofgains,supportedbynewleasesbyHuntingtonIngalls(168,480sq.ft.),
certainteed(165,000sq.ft.)andGXOLogistics(156,312sq.ft.).whileabsorptionslowedcomparedtolastquarter,year-ove「-yeargainsweresignificantandreflectedsustainedtenantdemandfor
modernfacilities.
Averagewarehouseaskingratesdecreasedslightlyfromlastquarterto$8.38persq.ft.buthaveincreased7.0%year-over-year,whileflexrateshaveremainedrelativelystableinthesame
timeperiod·
LeasingTrends
Leasingactivityincharlestonclosedtheyearat4.2millionsq.ft.withnewdealsaccountingfor
89.3%ofthetotal.Theaveragenewleasesizewas51,700sq.ft,andwhilethiswasslightlyhigherthan2024,itremainswellbelowthefiveyearpeakof118,489sq.ft.recordedin2023.This
suggeststhattenantsaregenerallyseekingsmallerfootprintsthaninprioryears.
subleaseavailabilityclimbedto2.7millionsq.ft.,up94.7%year-over-year,addingsubstantially
moresecond-generationspaceoptionstothemarket.Meanwhile,ofthe28.7millionsq.ft.deliveredsince2023,41.7%remainsavailable,providingopportunitiesfortenantsprioritizingmodern
facilities.overall,leasingdynamicsreflectashifttowardsmallerdealsizesandincreasedsubleaseinventory,withlocationandbuildingspecificationscontinuingtodrivedecision-making.
FIGURE2:vacancybysubmarket
source:CBREResearch,Q42025
FIGURE3:NotableLeaseTransactions
Type
Tenant
Address
sq.ft.
submarket
NewLease
HuntingtonIngalls
412portcitycentreDrive
168,480
l-26North
NewLease
certainteed
4500LeedsAvenue
165,000
Northcharleston/Ladson
NewLease
GXOLogistics
334portcitycentreDrive
156,312
I-26North
Renewal
FranklinEnergyservices
1701charlestonRegionalparkway
97,500
Eastcooper
NewLease
4GLogistics
3120AshleyphosphateRoad
75,080
Northcharleston/Ladson
source:CBREResearch,Q42025
FIGURES|CHARLESTONINDUSTRIAL|Q42025
3?2025CBRE,INC.
Development&Investment
salesactivityreboundedthisquarter,andthemarketexperiencedatotalof$142.7millionacross12transactions.Thisactivitywaspredominantlydrivenbyprivateinvestorbuyers,andthelargest
saleincludedNorthpointDevelopment's$55.1million($138.41persq.ft.)acquisitionofAirportcommercecenter,aclassAthreebuildingparkbuiltin2017.
onthedevelopmentfront,constructioncommencedononeprojectsinthel26Northsubmarket,a145,463sq.ft.buildingat7651southrailRoadwithinLowcountryLogisticsparkinNorth
charleston/Ladson.
Additionally,twosignificantcompletionsaddedover770,000sq.ft.tothemarket,including
Building3(505,440sq.ft.)andBuilding4(267,840sq.ft.)atBerkeleycommercecenterintheI-26corridor.Thesedeliveriesandnewstartsreflectongoingconfidenceincharleston'slogistics
infrastructure,evenasdevelopersworktomaintainameasuredapproachtogrowthentering2026.
Marketoutlook
Theu.s.economyissendingsomemixedsignals:someindicatorsofbusinessactivity,suchas
capitalgoodsorders,areimproving,andstrengtheningcreditmarketsarehelpingtousherreal
estateintoanewcycle.Datasuggeststhatannualaverageu.s.GDpgrowthwillbesteadyin2026,at2%,butatouchsofterthanin2025.Akeycatalystisasofterlabormarket,ascompaniesare
'slowtohire,slowtofire'atrendthatislikelytolastafewquarters.
Locally,charleston'sunemploymentrateaveraged3.7%thisquarter,outperformingtheu.s.
averageof4.4%.Logisticsandconstructionremaintheprimarydriversofleasinggrowth,
supportedbyportactivityandregionalinfrastructureinvestment.Thesesectorscontinueto
attractoccupiersseekingmodern,efficientfacilities,sustainingsteadydemanddespitebroadereconomiccaution.
withactivetenantrequirementsandameasureddevelopmentpipeline,themarketisexpectedtoimprovestabilityinthenearterm,withincrementalabsorptionconcentratedinclassAspace
acrosslogistics-orientedsubmarkets.
FIGURE4:NotablesalesTransactions
RemountBusinesspark
4800RemountRoad
305,114
$48.1
$157.48
Northcharleston/Ladson
Airportcommercecenter
2650FassittRoad
154,000
$20.9
$136.33
Northcharleston/Ladson
Airportcommercecenter
7246stallRoad
$19.4
$135.16
Northcharleston/Ladson
Airportcommercecenter
7334stallRoad
$14.6
$146.27
Northcharleston/Ladson
1BelknapDrive
1BelknapDrive
$3.8
$156.76
Northcharleston/Ladson
source:CBREResearch,Q42025
FIGURE5:constructionpipelineandvacancy
14.0
12.0
14.0
12.0
4.O
2.0
4.O
2.0
sq.Ft.(millions)vacancy(%)
Q1Q2Q3Q4Q1Q2Q3Q4Q2Q3Q4Q2Q3Q4
lllll2022202320242025
underconstructionDeliveriesvacancysub200,000sq.ft.vacancysource:CBREResearch,Q42025
FIGURES|CHARLESTONINDUSTRIAL|Q42025
4?2025CBRE,INC.
FIGURE6:Marketstatistics
Northcharleston/Ladson
32,373,871830,62633,204,497
9.51.0
9.3
14.41.0
14,1
294,145
-1,888292,257
217,724
-217,724
9.36
9.37
I-26North
36,840,442271,36537,143,207
21.95.9
28.45.9
-337,348
-638,864
HWY52North
6,028,346113,5596,277,105
westAshley
711,741338,6411,050,382
0.42.2
0.42.2
Eastcooper
9,114,883407,2919,522,174
6.2-
10.48.4
-22,680
-23,700
Hanahan
6,613,709195,4606,809,169
5.5-
-152,063
--152,063
9.48
charleston
308,695-308,695
13.64
13.64
source:CBREResearch,Q42025
FIGURES|CHARLESTONINDUSTRIAL|Q42025
submarketMap
CBREoffices
CBREIcharleston
1080MorrisonDrive,suite140
charleston,sc29403
surveycriteria
ThecBRE,Inc.IndustrialFiguresreportprovidesstatisticsbasedonarevisedsetofinventoryconsistingofindustrial
propertiesinthefollowingsubmarkets:charleston,Eastcooper,Hanahan,HWY52North,I26North,North
charleston/LadsonandwestAshley.Allpropertiesareindustrialpropertiesgreaterthan10,000sq.ft.Absor
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