charleston market - ravenel commercial propertiesamong other recent notable transactions occurred in...

Charleston Market

PREPARED BY

Lori Crowley

Marketing Coordinator

Industrial Market Report

INDUSTRIAL MARKET REPORT

Market Key Statistics 2

Leasing 3

Rent 5

Construction 7

Under Construction Properties 8

Sales 10

Sales Past 12 Months 11

Economy 13

Market Submarkets 15

Supply & Demand Trends 17

Rent & Vacancy 19

Sale Trends 21

Charleston Industrial

5/16/2018Copyrighted report licensed to Ravenel Commercial Properties, LLC -

700433.

OverviewCharleston Industrial

12 Mo Deliveries in SF

2 M12 Mo Net Absorption in SF

804 KVacancy Rate

6.9%12 Mo Rent Growth

4.6%Charleston has attracted a fair share of major firms inrecent years, including Boeing, Volvo, and Mercedes;partially as the result of the metro’s renowned port andproximity to a robust industrial infrastructure. Developershave been active in the metro in recent years, deliveringmore than a million square feet annually since 2015. Thetrend of construction appears positioned to continue thetrend, as more than 5 million square feet was under

construction in 2018’s second quarter. Absorption hasrecently stumbled, as a share of larger tenants movedout of space, providing additional availabilities in the formof vacant space. However, rent growth has continued atroughly 4.5% year-over-year in Charleston andinvestment has generally trended upward, with each yearsince 2013 exceeding $100 million in exchanges.

KEY INDICATORS

Asking RentVacancy RateRBACurrent Quarter Availability RateNet Absorption

SFDeliveries SF

UnderConstruction

$6.057.7%45,640,724Logistics 10.7% 495,565 127,169 1,764,908

$6.535.7%22,932,914Specialized Industrial 4.9% 670,271 0 3,395,000

$12.126.0%7,148,631Flex 8.2% (25,817) 6,000 28,089

$6.756.9%75,722,269Market 8.6% 1,140,019 133,169 5,187,997

ForecastAverage

HistoricalAverage

12 MonthAnnual Trends Peak When Trough When

6.2%8.7%1.4%Vacancy Change (YOY) 12.1% 2009 Q2 5.1% 2017 Q1

3,465,2111,188,310804 KNet Absorption SF 3,460,450 2011 Q4 (1,576,137) 2014 Q2

3,697,7141,277,7722 MDeliveries SF 2,682,108 2016 Q2 122,888 2010 Q2

1.4%0.8%4.6%Rent Growth 5.5% 2017 Q4 -3.8% 2010 Q2

N/A$170.0 M$168 MSales Volume $656.4 M 2010 Q2 $27.6 M 2009 Q2


700433. Page 2

LeasingCharleston Industrial

Charleston has continued to embrace globalization andeconomic diversification, contributing to an innovativeand thriving local economy that sits among the nation’stop performers in the current cycle. Both population andjob growth continue to outpace the national average,though the spread has narrowed in recent years. ThePort of Charleston has been one of the nation’s fastest-growing container ports since 2011 and grew at morethan double the U.S. average in recent years. The SouthCarolina Ports Authority implemented the Post-45Harbor Deepening Project, which will deepen theCharleston Harbor to 52 feet by the end of the decade,making Charleston the deepest port on the East Coast.Traffic is up 14% since 2015, a larger leap thanneighboring Port of Savannah’s 6.5%. Additionally, thismetro contains two railroads (Norfolk Southern and

CSX), I-26 (which connects to major interstates), andthe Charleston International Airport.

Vacancies have climbed recently because of the arrivalof the Charleston Trade Center, but demand has beenstrong enough to keep vacancies beneath the historicalaverage. Developers have been especially active sincethe beginning of 2015, with yearly deliveries significantlyoutpacing the historical average. The Outlying BerkeleyCounty Submarket experienced the largest deals bysquare footage in 2016. In 16Q3, Zinus Inc. subleased473,000 SF in the Charleston Gateway DistributionCenter from Piggly Wiggly, which vacated the space in14Q2. Additionally, TVS leased 212,000 SF in the NorthRhett Commerce Center in 16Q2.

NET ABSORPTION, NET DELIVERIES & VACANCY


700433. Page 3

LeasingCharleston Industrial

VACANCY RATE

AVAILABILITY RATE


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RentCharleston Industrial

Asking rents in Charleston’s industrial spaces averageroughly $6.75 per square foot, with the highest rentsachieved in the metro’s larger warehouse spaces.Despite strong demand drivers and proximity to one ofthe east coast’s premier ports, asking rents forCharleston in aggregate are roughly $1.25/ per foot lessthan the national figure. Rent appreciation has similarly

trailed the national average, averaging just above 5%year-over-year compared to the national average near6% year-over-year. The strong demand for space hasgenerally outpaced new deliveries, though 2017witnessed a reversal of the trend, and a surplus of newspace positioning the metro to see its vacancies rise.

ASKING RENT GROWTH (YOY)


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RentCharleston Industrial

ASKING RENT PER SQUARE FOOT


700433. Page 6

ConstructionCharleston Industrial

The Charleston industrial market typically generatesaround 1.2 Million square feet of deliveries in a givenyear. However, construction surpassed 2 million squarefeet in both 2015 and 2016 and followed by 1.3 milliondelivering in 2017. The trend appears to be positioned tocontinue, as more than 5 million square feet of newindustrial space was under construction in 2018’s secondquarter.

Childress Klein, a Charlotte-based development firm,worked on several projects this cycle, including theCharleston Regional Business Center (CRBC) andCrosspoint at Palmetto Commerce Park. (Palmetto is alight-industrial park that houses major manufacturing

companies including Boeing, Mercedes Benz, Vans, andThyssenKrupp.) The CRBC consists of four distributionbuildings totaling one million SF. The properties rangefrom about 100,000 SF–350,000 SF and are located bythe Charleston Airport and the Wando Welch and NorthCharleston terminals at the Port of Charleston. The firstset of deliveries completed in 2007, followed by a279,000 SF center in 15Q3 and a 351,000 SF project in16Q1. The Crosspoint development's is within thePalmetto Commerce Park, a light-industrial park thathouses major manufacturing companies includingBoeing, Mercedes Benz, Vans, and ThyssenKrupp. Thefirst 182,000 SF building (182,000 SF) delivered in 13Q4,and an additional 450,000 SF delivered in 2017.

DELIVERIES & DEMOLITIONS


700433. Page 7

Under Construction PropertiesCharleston Industrial

Properties

26Square Feet

5,187,997Percent of Inventory

7.6%Preleased

76.2%UNDER CONSTRUCTION PROPERTIES

UNDER CONSTRUCTION

Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner

Sep-20150 Ryefield Ln

Volvo Cars US Operations2,300,000 1 Oct-2018

RSCVOLVO

-1

Aug-20168501 Palmetto Commerce

Mercedes Benz Sprinter…1,000,000 1 May-2019

Mercedes-Benz USA

Mercedes-Benz USA2

Dec-2017830 Drop Off Rd

343,150 1 Jul-2018Ridge Development

-3

Dec-2017Patriot Blvd

262,080 1 Sep-2018-

-4

Mar-2017330 Omni Dr

Thorne Research Bldg.260,000 20 Jun-2018

WestRock Company

-5

Jan-20181017 Northpointe Industr…

247,000 1 Sep-2018-

-6

Nov-20177054 Weber Dr

173,000 1 Jun-2018-

-7


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Under Construction PropertiesCharleston Industrial

UNDER CONSTRUCTION

Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner

Oct-2017635 Omni Industrial Blvd

Samet Bldg 1117,568 1 Jun-2018

WestRock Company

-8

Oct-20171662 Bushy Park Rd

Evonik Sodium Silicate…95,000 - Jun-2018

-

Pacolet Milliken Enterprises, Inc.9

Feb-20182144 Melbourne St

65,000 1 Oct-2018-

McMultimodal Svc LLC10

Nov-2017780 Jedburg Rd

Worldwide Equipment51,800 1 Nov-2018

-

-11

Dec-20172278 Clements Ferry Rd

1008 Clements Crest Rd48,000 1 Jun-2018

-

-12

Mar-20174115 Carolina Commerce

35,000 1 Jun-2018-

-13

Feb-20174301 Dorchester Rd

Woodstock I #1830,000 1 Jun-2018

-

-14

Jan-20181270 Drop Off Dr

1270 Drop Off Drive25,000 1 Aug-2018

-

-15

Jul-20179551 Palmetto Commerce…

Building 40024,978 1 Jun-2018

-

-16

May-20179551 Palmetto Commerce…

Building 30024,300 1 Jun-2018

-

-17

Jan-20187035 Cross County Rd

20,250 - Sep-2018-

-18

Oct-20176655 Jet Park Dr

6655 Jet Park Road16,313 1 Jun-2018

-

-19

Mar-2018218 Howle Ave

10,200 1 Aug-2018-

-20

Jan-20167581 Sandlapper Pky

10,169 1 Jun-2018-

-21

Apr-20181135 Gregorie Ferry Rd

Gregorie Ferry Business…9,000 1 Jul-2018

-

-22

Jan-20187011 Design St

Building 7007,500 1 Jul-2018

-

-23

Apr-20187710 Southrail Rd

B4,800 1 Aug-2018

-

-24

Apr-20187710 Southrail Rd

A4,800 1 Aug-2018

-

-25

Jan-2018707 Dupont Rd

3,089 1 Aug-2018-

-26


700433. Page 9




















SalesCharleston Industrial

Total sales volume in 2017 was a bit below the historicalaverage at roughly $135 Million. Price per square footincreased to closer to $59/SF, and the average cap rateexceeded 7%. Notable recent transactions include thesale of three buildings at 4500 Leeds Avenue. In thetransaction, over 1 million square feet of space in threebuildings sold to LRC Properties (NY) from GlastonburyCapital LLC (NY) for $42 Million. The price equates toroughly $40 per foot, and the properties were about 95%occupied at the time of sale.

Among other recent notable transactions occurred inApril 2016, when Gerber Childrenswear purchased the

477,000 SF distribution building on Trade ZoneBoulevard for $32 million, or $67/SF. MeadWestvacoCorporation developed the property as a built-to-suit forthe buyer, which occupied the entire building immediatelyafter it delivered in December 2015.

Additionally in April 2016, the 351,000 SF CRBC IIbuilding sold to Regal Logistics for $19 million about$50/SF. This acquisition raised the buyer’s nationalfootprint to roughly 2.3 million SF of full-servicewarehousing. This property features 93 dock doors and a30-foot clear height.

SALES VOLUME & MARKET SALE PRICE PER SF


700433. Page 10

Sales Past 12 MonthsCharleston Industrial

Sale Comparables

109Avg. Cap Rate

7.0%Avg. Price/SF

$64Avg. Vacancy At Sale

22.7%SALE COMPARABLE LOCATIONS

SALE COMPARABLES SUMMARY STATISTICS

Sales Attributes Low Average Median High

Sale Price $17,000 $2,481,567 $897,600 $32,097,937

Price Per SF $0.68 $64 $75 $988

Cap Rate 5.7% 7.0% 6.3% 10.7%

Time Since Sale in Months 0.7 6.2 5.5 12.0

Property Attributes Low Average Median High

Building SF 841 29,107 8,017 803,902

Ceiling Height 8' 18'1" 16'6" 40'

Docks 0 1 0 37

Vacancy Rate At Sale 0% 22.7% 0% 100%

Year Built 1940 1995 1999 2018

Star Rating 1.9


700433. Page 11

Sales Past 12 MonthsCharleston Industrial

Property Name - Address Rating Yr Built Bldg SF Vacancy Price Price/SF

Property

Sale Date

Sale

Cap Rate

RECENT SIGNIFICANT SALES

-1 Core Facility1964 803,902 22.2% $32,097,937 $40

4500 Leeds Ave11/1/2017 -

-2 1116 Newton Way2008 451,370 100% $25,950,000 $573/21/2018 -

-3 FedEx Distribution Center2017 121,683 0% $21,872,170 $180

1892 Anfield Rd11/2/2017 -

-4 2550 Highway 521979 201,500 0% $9,000,000 $451/25/2018 8.0%

-5 Flagship 21940 15,916 0% $8,036,197 $505

485 E Bay St3/30/2018 -

-6 1510 Meeting Street Rd2007 8,000 0% $7,900,000 $9888/10/2017 -

-7 Building 32017 165,000 0% $6,588,066 $40

4500 Leeds Ave11/1/2017 -

-8 1770 Hock Ave1985 88,288 0% $6,000,000 $684/4/2018 -

-9 2284 Clements Ferry Rd2005 22,176 0% $4,438,000 $2006/30/2017 6.5%

-10 1950 Hanahan Rd1995 50,000 0% $3,750,000 $756/26/2017 10.7%

-11 22008 83,000 0% $3,313,997 $40

4500 Leeds Ave11/1/2017 -

-12 164 Spring Grove Dr1986 103,050 0% $2,820,000 $279/19/2017 -

-13 2819 Industrial Ave1979 112,000 0% $2,750,000 $258/30/2017 -

-14 2460 Remount Rd1985 35,600 0% $2,500,000 $705/23/2017 -

-15 Albemarle II1965 11,112 0% $2,000,000 $180

238 Albemarle Rd7/24/2017 6.4%

-16 211 Eagle Rd- 32,432 0% $2,000,000 $624/13/2018 -

-17 1003 Bankton Cir- 22,500 0% $1,750,000 $784/23/2018 -

-18 3350 Meeting Rd1972 23,000 0% $1,450,000 $6310/31/2017 -

-19 5 Corporate Pky- 40,750 98.2% $1,429,333 $7912/15/2017 -

-20 4740 Rivers Ave2001 14,400 0% $1,400,000 $9711/13/2017 -


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EconomyCharleston Industrial

Following the success of Boeing, Mercedes,Benefitfocus, and People Matter, the Chamber ofCommerce forecasted a net gain of 21,000 jobs in 2016and 2017 across all job sectors. Rapid expansion in anumber of the metro’s economic drivers is believed to beserving as catalyst for the recent strong performance. Athriving port and proliferation of manufacturing facilitieshave combined to fuel dramatically growth. Additionally,Charleston’s historic charm and architecture make it atourist destination in South Carolina, facilitating growth inthe leisure and hospitality sectors.

The professional and business sectors outpaced thenational economy for much of the cycle with growtharound 4% in recent years, though recent quarters haveseen the trend reverse. Slight job losses have beenobserved year-over-year, partially as of result of layoffsin the area such as CreateSpace and voluntary layoffs atBoeing. However, other sectors including naturalresources/mining and manufacturing have performedvery well.

Volvo plans to construct a $500 million factory that willultimately employ 4,000 in Berkeley County. Construction

began in September 2015, and the first vehicles areexpected to enter production in 2018. Mercedes-Benzwill be spending a half-billion dollars to construct an 8.6million SF facility to make its Sprinter series ofcommercial vans. Construction began in 16Q2, and theplant could bring as many as 1,300 jobs. Unsurprisingly,the leisure and hospitality sector continues to grow, asCharleston remains one of the nation's top touristdestinations.

Benefitfocus, a top employer in Charleston, hasexpanded its headquarters in Daniel Island, completingits first leg of development in 15Q1. This project, oncecompleted, is anticipated to add 1,200 employees, withthe majority of them being engineers. Daniel Island,nestled in between North Charleston and Mt. Pleasant, isa 20-year-old master-planned village containing 6,000homes, two golf courses, a country club, two million SFof office, 1.2 million SF of retail, three schools, a marina,at least 1,500 apartment units, and close to 400 acres ofopen space for new development. This island holds thehighest median income in the market at $94,000 and hasseen 35% income growth in the last five years.

CHARLESTON EMPLOYMENT BY INDUSTRY IN THOUSANDS

NAICS Industry Jobs LQ MarketUS USMarketUSMarket

Current Jobs Current Growth 10 Yr Historical 5 Yr Forecast

-1.22%1.07%-1.08%1.69%-0.41%2.89%0.927Manufacturing

0.28%0.15%0.42%1.03%1.16%-0.23%1.064Trade, Transportation and Utilities

0.28%0.15%0.30%0.82%0.32%-1.58%1.040 Retail Trade

0.76%0.59%0.26%1.47%0.71%0.63%0.715Financial Activities

0.50%0.58%-0.05%0.89%0.11%1.23%1.265Government

1.63%1.87%-0.37%0.74%3.85%7.84%1.122Natural Resources, Mining and Construction

1.27%1.04%2.04%2.63%1.63%4.27%0.741Education and Health Services

1.51%1.05%1.51%2.20%2.46%-0.88%1.154Professional and Business Services

0.29%-0.03%-0.95%1.22%0.20%7.71%1.06Information

1.29%1.56%1.78%2.58%1.89%1.28%1.248Leisure and Hospitality

0.41%0.06%0.43%2.01%0.78%0.48%1.014Other Services

Total Employment 357 1.0 1.54% 1.28% 1.64% 0.68% 0.85% 0.80%

Source: Moody's Analytics

LQ = Location Quotient


700433. Page 13

EconomyCharleston Industrial

Source: Moody’s Analytics

YEAR OVER YEAR JOB GROWTH

DEMOGRAPHIC TRENDS

Current ChangeCurrent Level

Metro U.S.Metro U.S.Demographic Category

10-Year Change Forecast Change

Metro U.S. Metro U.S.

Population 327,676,666782,456 1.4% 0.7% 2.0% 0.8% 1.4% 0.7%

Households 125,924,977313,556 1.5% 0.9% 2.2% 0.8% 1.7% 1.1%

Median Household Income $60,498$61,549 4.0% 3.5% 2.1% 1.6% 2.6% 3.0%

Labor Force 161,514,450383,421 0.8% 0.9% 2.0% 0.5% 1.1% 0.8%

Unemployment 4.1%3.5% -0.2% -0.4% -0.2% -0.1% - -

Source: Moody’s Analytics

POPULATION GROWTH

Source: Moody's Analytics

LABOR FORCE GROWTH INCOME GROWTH


700433. Page 14

SubmarketsCharleston Industrial

CHARLESTON SUBMARKETS


700433. Page 15

SubmarketsCharleston Industrial

SUBMARKET INVENTORY

12 Month Deliveries Under Construction

Bldgs SF (000) Percent Rank

Inventory

Bldgs SF (000) Percent RankBldgs SF (000) % Market RankSubmarketNo.

1 Dorchester County 8,357 11.0% 4 1 10 0.1% 5364 3 121 1.4% 3

2 Downtown Charleston 834 1.1% 6 0 - - -41 0 0 0% -

3 E Charleston County 65 0.1% 10 0 - - -7 0 0 0% -

4 East Islands/Mt Pleasant 1,371 1.8% 5 1 9 0.7% 6125 0 0 0% -

5 Greater Charleston 8,524 11.3% 3 2 51 0.6% 3476 3 18 0.2% 5

6 James Island/Folly Beach 723 1.0% 7 1 10 1.4% 480 0 0 0% -

7 North Charleston 30,871 40.8% 1 13 1,668 5.4% 21,223 8 859 2.8% 2

8 Outlying Berkeley County 24,095 31.8% 2 8 3,440 14.3% 1463 6 958 4.0% 1

9 W Charleston County 306 0.4% 9 0 - - -33 0 0 0% -

10 West Islands 572 0.8% 8 0 - - -50 4 24 4.3% 4

SUBMARKET RENT

Growth

Asking Rent

Per SFSubmarketNo.

12 Month Asking Rent Annualized Quarterly Rent

RankRank GrowthRank

1 Dorchester County -1.3%9 4.8% 4$5.44 10

2 Downtown Charleston 1.8%4 4.9% 2$8.26 4

3 E Charleston County 0.7%5 3.9% 9$8.11 9

4 East Islands/Mt Pleasant 0.9%1 4.7% 5$11.77 8

5 Greater Charleston 1.9%2 4.8% 3$8.39 3

6 James Island/Folly Beach 2.1%6 3.8% 10$7.96 2

7 North Charleston 1.1%7 4.5% 8$6.84 6

8 Outlying Berkeley County 1.5%8 4.6% 6$6.18 5

9 W Charleston County 2.3%10 5.2% 1$5.15 1

10 West Islands 1.1%3 4.5% 7$8.35 7

SUBMARKET VACANCY & NET ABSORPTION

12 Month Net Absorption

Rank Construct. Ratio

Vacancy

SF % of InvSF PercentSubmarketNo. Rank

1 Dorchester County 306,835 3.7% 2.156,475 0.7% 46

2 Downtown Charleston 47,989 5.8% -2,738 0.3% 67

3 E Charleston County - - -0 0% --

4 East Islands/Mt Pleasant 22,163 1.6% -(3,683) -0.3% 93

5 Greater Charleston 310,046 3.6% 0.1182,028 2.1% 35

6 James Island/Folly Beach 14,000 1.9% -(11,220) -1.6% 104

7 North Charleston 2,383,182 7.7% 3.0223,323 0.7% 28

8 Outlying Berkeley County 2,148,831 8.9% 2.9325,208 1.3% 19

9 W Charleston County 1,900 0.6% -324 0.1% 72

10 West Islands 2,310 0.4% 1.025,156 4.4% 51


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Supply & Demand TrendsCharleston Industrial

OVERALL SUPPLY & DEMAND

Net AbsorptionInventory

% of Inv Construction RatioSF SF Growth % Growth SFYear

2022 2,878,194 3.2% 2.8%2,613,421 1.192,588,492

2021 3,123,087 3.6% 3.2%2,858,550 1.189,710,298

2020 3,316,705 4.0% 3.6%3,106,950 1.186,587,211

2019 3,363,417 4.2% 3.8%3,193,933 1.183,270,506

2018 5,202,283 7.0% 7.8%6,210,604 0.879,907,089

YTD 1,017,463 1.4% 2.2%1,661,541 0.675,722,269

2017 1,328,359 1.8% 0.6%423,063 3.174,704,806

2016 2,100,352 2.9% 3.4%2,494,164 0.873,376,447

2015 2,190,879 3.2% 3.5%2,491,113 0.971,276,095

2014 424,485 0.6% 1.5%1,024,226 0.469,085,216

2013 403,371 0.6% -0.8%(546,883) -68,660,731

2012 358,549 0.5% 1.5%993,930 0.468,257,360

2011 2,400,642 3.7% 5.1%3,460,450 0.767,898,811

2010 164,785 0.3% -0.1%(74,698) -65,498,169

2009 657,599 1.0% 0.9%558,998 1.265,333,384

2008 1,856,683 3.0% -0.5%(333,432) -64,675,785

2007 - - 2.7%1,684,511 -62,819,102

SPECIALIZED INDUSTRIAL SUPPLY & DEMAND



2022 1,238,622 4.1% 3.7%1,148,972 1.131,353,843

2021 1,343,989 4.7% 4.3%1,292,846 1.030,115,221

2020 1,427,322 5.2% 4.7%1,366,150 1.028,771,232

2019 2,017,535 8.0% 6.3%1,732,136 1.227,343,910

2018 2,393,461 10.4% 12.4%3,128,740 0.825,326,375

YTD 0 0% 1.8%408,069 022,932,914

2017 (221,000) -1.0% -2.0%(460,504) -22,932,914

2016 959,200 4.3% 3.2%739,183 1.323,153,914

2015 74,201 0.3% 0.7%150,187 0.522,194,714

2014 (7,308) 0% 1.6%351,324 -22,120,513

2013 81,085 0.4% -2.5%(563,820) -22,127,821

2012 105,897 0.5% 0.7%153,239 0.722,046,736

2011 807,270 3.8% 5.8%1,275,121 0.621,940,839

2010 0 0% -0.1%(23,194) -21,133,569

2009 70,616 0.3% -3.0%(638,833) -21,133,569

2008 432,577 2.1% 0.6%129,712 3.321,062,953

2007 - - 2.9%606,944 -20,630,376


700433. Page 17

Supply & Demand TrendsCharleston Industrial

LOGISTICS SUPPLY & DEMAND



2022 1,584,081 3.0% 2.7%1,439,991 1.153,832,863

2021 1,718,896 3.4% 3.0%1,541,800 1.152,248,782

2020 1,825,429 3.7% 3.4%1,711,086 1.150,529,886

2019 1,300,423 2.7% 2.9%1,418,362 0.948,704,457

2018 2,751,199 6.2% 6.7%3,161,359 0.947,404,034

YTD 987,889 2.2% 3.0%1,370,049 0.745,640,724

2017 1,456,157 3.4% 1.8%796,008 1.844,652,835

2016 1,106,417 2.6% 4.0%1,729,276 0.643,196,678

2015 1,526,237 3.8% 4.0%1,679,343 0.942,090,261

2014 98,915 0.2% 0.4%171,624 0.640,564,024

2013 315,848 0.8% 0%3,466 91.140,465,109

2012 33,149 0.1% 1.4%558,306 0.140,149,261

2011 1,556,997 4.0% 5.1%2,055,654 0.840,116,112

2010 43,030 0.1% -0.4%(146,503) -38,559,115

2009 557,351 1.5% 3.1%1,186,680 0.538,516,085

2008 735,827 2.0% -3.1%(1,183,210) -37,958,734

2007 - - 2.6%969,355 -37,222,907

FLEX SUPPLY & DEMAND



2022 55,491 0.8% 0.3%24,458 2.37,401,786

2021 60,202 0.8% 0.3%23,904 2.57,346,295

2020 63,954 0.9% 0.4%29,714 2.27,286,093

2019 45,459 0.6% 0.6%43,435 1.07,222,139

2018 57,623 0.8% -1.1%(79,495) -7,176,680

YTD 29,574 0.4% -1.6%(116,577) -7,148,631

2017 93,202 1.3% 1.2%87,559 1.17,119,057

2016 34,735 0.5% 0.4%25,705 1.47,025,855

2015 590,441 9.2% 9.5%661,583 0.96,991,120

2014 332,878 5.5% 7.8%501,278 0.76,400,679

2013 6,438 0.1% 0.2%13,471 0.56,067,801

2012 219,503 3.8% 4.7%282,385 0.86,061,363

2011 36,375 0.6% 2.2%129,675 0.35,841,860

2010 121,755 2.1% 1.6%94,999 1.35,805,485

2009 29,632 0.5% 0.2%11,151 2.75,683,730

2008 688,279 13.9% 12.7%720,066 1.05,654,098

2007 - - 2.2%108,212 -4,965,819


700433. Page 18

Rent & VacancyCharleston Industrial

OVERALL RENT & VACANCY

Asking Rent

Per SF Index % Growth Vs Hist PeakYear

Vacancy

SF Percent Ppts Chg

2022 117 0.4% 6.3%$7.09 5,781,562 6.2% 0.1%

2021 116 0.4% 5.9%$7.07 5,516,789 6.1% 0.1%

2020 116 0.3% 5.5%$7.04 5,252,252 6.1% 0%

2019 116 1.8% 5.2%$7.01 5,042,514 6.1% 0%

2018 114 3.7% 3.5%$6.89 4,873,061 6.1% -1.8%

YTD 111 1.5% 1.5%$6.75 5,237,256 6.9% -1.0%

2017 110 5.5% 0%$6.65 5,881,334 7.9% 1.1%

2016 104 3.7% -5.5%$6.30 4,976,038 6.8% -0.8%

2015 100 3.6% -9.5%$6.07 5,381,881 7.6% -0.7%

2014 97 3.3% -13.4%$5.86 5,682,115 8.2% -0.9%

2013 94 2.2% -17.2%$5.67 6,281,856 9.1% 1.3%

2012 91 0.2% -19.8%$5.55 5,330,595 7.8% -1.0%

2011 91 -1.6% -20.0%$5.54 5,965,976 8.8% -1.9%

2010 93 -3.6% -18.1%$5.63 7,025,784 10.7% 0.3%

2009 96 -3.7% -13.8%$5.84 6,786,301 10.4% 0%

2008 100 -1.5% -9.6%$6.07 6,687,700 10.3% 3.2%

2007 102 - -7.9%$6.16 4,497,585 7.2% -

SPECIALIZED INDUSTRIAL RENT & VACANCY

Asking Rent


Vacancy

SF Percent Ppts Chg

2022 113 0.6% 6.4%$6.91 1,475,448 4.7% 0.1%

2021 113 0.6% 5.9%$6.87 1,385,798 4.6% 0%

2020 112 0.5% 5.4%$6.83 1,334,655 4.6% 0%

2019 112 1.9% 4.9%$6.80 1,273,500 4.7% 0.8%

2018 110 3.2% 3.1%$6.67 988,112 3.9% -3.6%

YTD 107 1.1% 1.1%$6.53 1,315,294 5.7% -1.8%

2017 106 6.1% 0%$6.47 1,723,363 7.5% 1.1%

2016 100 3.0% -6.1%$6.10 1,483,859 6.4% 0.7%

2015 97 2.4% -9.3%$5.92 1,263,842 5.7% -0.4%

2014 95 3.2% -11.9%$5.78 1,339,828 6.1% -1.6%

2013 92 2.8% -15.4%$5.60 1,698,460 7.7% 2.9%

2012 89 -0.1% -18.6%$5.45 1,053,555 4.8% -0.2%

2011 90 -2.1% -18.5%$5.46 1,100,897 5.0% -2.4%

2010 91 -4.0% -16.1%$5.57 1,568,748 7.4% 0.1%

2009 95 -4.8% -11.4%$5.80 1,545,554 7.3% 3.3%

2008 100 -2.1% -6.1%$6.09 836,105 4.0% 1.4%

2007 102 - -3.9%$6.22 533,240 2.6% -


700433. Page 19

Rent & VacancyCharleston Industrial

LOGISTICS RENT & VACANCY

Asking Rent


Vacancy

SF Percent Ppts Chg

2022 119 0.3% 6.5%$6.35 3,782,132 7.0% 0.1%

2021 118 0.3% 6.2%$6.33 3,638,042 7.0% 0.1%

2020 118 0.2% 5.8%$6.31 3,460,946 6.8% 0%

2019 117 1.7% 5.6%$6.29 3,346,603 6.9% -0.4%

2018 116 4.2% 4.0%$6.19 3,464,562 7.3% -1.4%

YTD 113 2.0% 1.9%$6.05 3,492,542 7.7% -1.0%

2017 111 5.3% 0%$5.94 3,874,702 8.7% 1.2%

2016 105 4.0% -5.3%$5.64 3,214,553 7.4% -1.7%

2015 101 4.2% -9.5%$5.42 3,837,412 9.1% -0.7%

2014 97 3.6% -14.1%$5.20 3,990,518 9.8% -0.2%

2013 94 2.2% -18.2%$5.03 4,063,227 10.0% 0.7%

2012 92 0.3% -20.8%$4.92 3,749,838 9.3% -1.3%

2011 91 -1.5% -21.2%$4.90 4,274,995 10.7% -1.7%

2010 93 -3.3% -19.4%$4.97 4,773,652 12.4% 0.5%

2009 96 -4.0% -15.4%$5.14 4,584,119 11.9% -1.8%

2008 100 -1.6% -10.9%$5.36 5,213,448 13.7% 4.9%

2007 102 - -9.1%$5.44 3,294,411 8.9% -

FLEX RENT & VACANCY

Asking Rent


Vacancy

SF Percent Ppts Chg

2022 119 0.4% 5.3%$12.69 523,982 7.1% 0.4%

2021 118 0.4% 5.0%$12.64 492,949 6.7% 0.4%

2020 118 0.3% 4.6%$12.60 456,651 6.3% 0.4%

2019 118 1.7% 4.4%$12.56 422,411 5.8% 0%

2018 116 2.8% 2.7%$12.35 420,387 5.9% 1.9%

YTD 113 0.9% 0.9%$12.12 429,420 6.0% 2.0%

2017 112 5.2% 0%$12.01 283,269 4.0% 0%

2016 107 4.2% -5.2%$11.42 277,626 4.0% -0.1%

2015 103 4.0% -9.6%$10.96 280,627 4.0% -1.5%

2014 99 3.0% -14.0%$10.54 351,769 5.5% -3.1%

2013 96 1.2% -17.4%$10.23 520,169 8.6% -0.1%

2012 95 0.1% -18.8%$10.11 527,202 8.7% -1.4%

2011 95 -0.9% -19.0%$10.09 590,084 10.1% -1.7%

2010 95 -4.0% -17.9%$10.19 683,384 11.8% 0.2%

2009 99 -0.7% -13.2%$10.61 656,628 11.6% 0.3%

2008 100 -0.2% -12.5%$10.68 638,147 11.3% -2.2%

2007 100 - -12.2%$10.70 669,934 13.5% -


700433. Page 20

Sale TrendsCharleston Industrial

OVERALL SALES

Completed Transactions (1)

Turnover Avg Price/SFDeals VolumeYear

Market Pricing Trends (2)

Avg Price Price IndexAvg Cap Rate Price/SF Cap Rate

2022 -- - -- 110- $63.23 8.7%

2021 -- - -- 108- $62.21 8.7%

2020 -- - -- 108- $62.21 8.6%

2019 -- - -- 110- $63.46 8.2%

2018 -- - -- 111- $63.79 8.0%

YTD $59.3 M35 1.4% $58.70$2,373,542 1106.5% $63.38 8.0%

2017 $134.8 M118 3.5% $59.33$2,042,199 1067.3% $61.30 7.9%

2016 $344.4 M121 9.7% $49.94$3,622,203 987.3% $56.22 8.0%

2015 $131.7 M118 4.4% $51.18$1,442,881 927.3% $52.96 8.0%

2014 $137.8 M128 3.8% $58.23$1,313,860 939.8% $53.49 7.9%

2013 $112.1 M93 3.8% $49.72$1,807,970 858.5% $49.21 8.1%

2012 $48.9 M77 1.9% $52.85$940,166 859.4% $48.69 8.1%

2011 $120.1 M52 3.4% $54.16$2,860,632 849.3% $48.28 8.2%

2010 $68.4 M51 3.0% $41.73$1,710,925 807.9% $46.25 8.6%

2009 $623.2 M25 2.5% $404.97$32,799,712 839.1% $48.04 8.6%

2008 $33.8 M28 2.9% $51.81$1,406,294 1007.9% $57.61 7.7%

2007 $74.3 M17 2.9% $57.84$4,952,833 1066.8% $61.29 7.3%

(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.

(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

SPECIALIZED INDUSTRIAL SALES





2022 -- - -- 114- $49.10 8.4%

2021 -- - -- 112- $48.30 8.4%

2020 -- - -- 112- $48.30 8.3%

2019 -- - -- 114- $49.27 8.0%

2018 -- - -- 115- $49.53 7.7%

YTD $36.8 M5 3.0% $54.31$7,357,601 1148.0% $49.22 7.7%

2017 $48.4 M15 5.6% $38.80$4,397,728 109- $47.04 7.7%

2016 $32.8 M15 5.0% $28.60$2,519,338 1006.9% $43.24 7.8%

2015 $12.3 M10 3.1% $26.38$1,752,540 956.0% $41.09 7.8%

2014 $30.8 M21 2.6% $55.72$1,710,694 957.4% $41.09 7.7%

2013 $6.2 M9 1.2% $33.63$1,231,450 88- $37.74 8.0%

2012 $13.5 M13 1.0% $64.15$1,128,153 869.6% $37.02 8.0%

2011 $13.2 M8 2.3% $26.36$1,884,974 85- $36.51 8.1%

2010 $1.0 M3 0.2% $51.27$475,000 81- $35.00 8.5%

2009 $595.6 M4 2.3% $1,240.58$148,902,132 84- $36.34 8.5%

2008 $2.4 M5 5.9% $87.69$783,333 1007.5% $43.08 7.7%

2007 $57.0 M7 7.0% $64.04$11,405,390 1066.8% $45.58 7.3%




700433. Page 21

Sale TrendsCharleston Industrial

LOGISTICS SALES





2022 -- - -- 105- $64.16 8.9%

2021 -- - -- 104- $63.14 8.9%

2020 -- - -- 104- $63.15 8.8%

2019 -- - -- 106- $64.35 8.4%

2018 -- - -- 106- $64.65 8.2%

YTD $17.6 M23 0.7% $64.02$1,175,089 1056.0% $64.23 8.2%

2017 $56.6 M62 2.0% $80.93$1,886,938 1038.6% $62.48 8.1%

2016 $286.1 M84 13.3% $51.86$4,335,510 947.0% $57.28 8.2%

2015 $96.1 M75 5.0% $53.51$1,596,952 897.7% $54.10 8.2%

2014 $63.3 M72 3.7% $48.49$1,145,552 918.5% $55.52 8.0%

2013 $91.0 M60 5.2% $48.47$2,393,853 848.2% $51.06 8.2%

2012 $28.4 M53 2.4% $45.21$947,476 84- $50.89 8.2%

2011 $71.4 M35 3.8% $48.37$2,463,612 83- $50.71 8.3%

2010 $60.8 M39 4.7% $39.66$1,961,355 807.9% $48.52 8.6%

2009 $25.4 M15 2.8% $25.20$2,542,400 839.1% $50.38 8.6%

2008 $30.7 M20 1.5% $54.81$1,615,845 1008.0% $60.91 7.7%

2007 $17.1 M9 1.1% $43.57$1,896,728 107- $64.88 7.3%



FLEX SALES





2022 -- - -- 122- $108.85 8.4%

2021 -- - -- 120- $106.96 8.4%

2020 -- - -- 120- $106.96 8.3%

2019 -- - -- 123- $109.49 8.0%

2018 -- - -- 124- $110.37 7.7%

YTD $4.9 M7 0.9% $84.50$984,843 1236.0% $109.64 7.7%

2017 $29.8 M41 6.3% $91.55$1,192,080 1196.8% $105.69 7.7%

2016 $25.5 M22 3.8% $109.17$1,575,890 1088.0% $96.76 7.7%

2015 $23.3 M33 5.4% $74.70$967,386 1007.1% $88.93 7.8%

2014 $43.7 M35 8.2% $85.94$1,382,052 9613.1% $85.66 7.8%

2013 $15.0 M24 3.6% $76.99$787,921 899.1% $79.11 8.0%

2012 $7.0 M11 1.4% $80.88$692,650 869.0% $76.96 8.0%

2011 $35.5 M9 4.6% $147.38$5,917,833 859.3% $75.52 8.2%

2010 $6.7 M9 1.7% $75.68$955,000 81- $72.63 8.5%

2009 $2.2 M6 1.0% $43.31$432,400 859.1% $75.52 8.5%

2008 $0.7 M3 1.4% $10.87$350,000 100- $89.18 7.7%

2007 $0.2 M1 0% $97.50$195,000 107- $95.36 7.3%




700433. Page 22

charleston market - ravenel commercial propertiesamong other recent notable transactions occurred in...

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