Brokers: Charleston Area on Verge of Industrial Real Estate Boom

Industrial rental space is hard to come by and rates are going up across the Charleston metro, according to lease figures from the first quarter of 2013. The flurry of activity could lead to a building boom over the next year.

Excitement over Boeing South Carolina's rapid growth at its North Charleston facility is partly responsible, but overall improving economic conditions at the port and in manufacturing are mostly driving the trend, according to the report released by brokerage firm Colliers International.

"Charleston’s industrial market accelerated in the first quarter with increased tenant activity," the report reads. "As tenants and owner-occupiers positioned themselves for future growth, many companies secured longer term leases, contemplated the purchase of their current facility and consolidated facilities to improve efficiency."

The overall vacancy rate declined to 11.4 percent at the end of the first quarter, down from 11.7 percent from the end of the fourth quarter of 2012.

"The surge in activity led to improved overall market fundamentals in the first quarter - vacancy rates decreased, average asking rental rates increased, new supply delivered and net absorption was positive," Colliers writes.

Read the full industrial real estate market report.

The tightened supply — if the trend continues unabated — could result in an industrial "building boom," Colliers speculates.

"The next speculative development could be as soon as the fourth quarter of this year if tenant activity and demand ... remain(s) strong," Colliers speculated.