industrial market report | 2014 charleston commercial market forecast
DESCRIPTION
2014 Charleston Commercial Market Forecast - Industrial market report presented by Michael Tall, President & Chief Operating Officer, Charlestowne Hotels.TRANSCRIPT
Commercial Real Estate Market Forecast
October 8, 2014 | Daniel Island Club
www.CharlestonCommercialMarketForecast.com
DEMAND POPULATION GROWTH RENTAL RATES VACANCY AEROSPACE DATA CONSOLIDATION SALES ACTIVITY SUBMARKETS LEASE TERMS EXPANSION SPEC CONSTRUCTION DEMAND POPULATION GROWTH DISTRIBUTION VACANCY INTERSTATE ACCESS TECHNOLOGY SALES ACTIVITY SUBMARKETS LEASE TERMS EXPANSION NEW CONSTRUCTION JEDBURG DEMAND POPULATION GROWTH RENTAL RATES VACANCY AEROSPACE DATA CONSOLIDATION SALES ACTIVITY SUBMARKETS LEASE TERMS EXPANSION SPEC CONSTRUCTION DEMAND POPULATION GROWTH DISTRIBUTION VACANCY INTERSTATE ACCESS TECHNOLOGY SALES ACTIVITY SUBMARKETS LEASE TERMS EXPANSION NEW CONSTRUCTION JEDBURG DEMAND POPULATION GROWTH RENTAL RATES VACANCY AEROSPACE DATA CONSOLIDATION SALES ACTIVITY SUBMARKETS LEASE TERMS EXPANSION SPEC CONSTRUCTION DEMAND POPULATION GROWTH DISTRIBUTION VACANCY INTERSTATE ACCESS TECHNOLOGY SALES ACTIVITY SUBMARKETS LEASE TERMS EXPANSION NEW CONSTRUCTION JEDBURG DEMAND POPULATION GROWTH RENTAL RATES VACANCY AEROSPACE DATA CONSOLIDATION SALES ACTIVITY SUBMARKETS LEASE TERMS EXPANSION SPEC CONSTRUCTION DEMAND POPULATION GROWTH DISTRIBUTION VACANCY INTERSTATE ACCESS TECHNOLOGY SALES ACTIVITY SUBMARKETS LEASE TERMS EXPANSION NEW CONSTRUCTION JEDBURG DEMAND POPULATION GROWTH RENTAL RATES VACANCY AEROSPACE DATA CONSOLIDATION SALES ACTIVITY SUBMARKETS LEASE TERMS EXPANSION SPEC CONSTRUCTION DEMAND POPULATION GROWTH DISTRIBUTION VACANCY INTERSTATE ACCESS TECHNOLOGY SALES ACTIVITY SUBMARKETS LEASE TERMS EXPANSION NEW CONSTRUCTION JEDBURG DEMAND POPULATION GROWTH RENTAL RATES VACANCY AEROSPACE DATA CONSOLIDATION SALES ACTIVITY SUBMARKETS LEASE TERMS EXPANSION SPEC CONSTRUCTION DEMAND POPULATION GROWTH DISTRIBUTION VACANCY INTERSTATE ACCESS TECHNOLOGY SALES ACTIVITY SUBMARKETS LEASE TERMS EXPANSION NEW CONSTRUCTION JEDBURG DEMAND POPULATION GROWTH
INDUSTRIALREPORT
www.CharlestonCommercialMarketForecast.com
Tri-County Industrial Market
The Tipping Point: “Are We There Yet?”
Alan A. Bolduc, CCIM, SIORSenior Vice PresidentIndustrial & Investment Services
[email protected] 843.860.9566
www.CharlestonCommercialMarketForecast.com
Local Industrial Brokerage firms
and CoStar unifying the market,
submarket and market data
reporting.
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www.CharlestonCommercialMarketForecast.com
Sales
Graphs on market data and trending
National Cycle
Lease
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South Carolina?
www.CharlestonCommercialMarketForecast.com
2012 YE
2013 YE
2014 YTD
2015 F0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
2012 YE 2013 YE 2014 YTD
2015 F4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
2012 YE 2013 YE 2014 YTD
2015 F$3.50
$4.00
$4.50
$5.00
$5.50
$6.00
$6.50
$7.00
2012 YE
2013 YE
2014 YTD
1030507090
110130150170
RBA SF
Vacancy Rate Average Asking Rent (NNN)
Lease Transactions (Original & Sublet)
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2012 YE 2013 YE 2014 YTD 2015 F$30.00
$40.00
$50.00
$60.00
$70.00
2012 YE 2013 YE 2014 YTD0
10
20
30
40
50Sold Transactions Median $/SF
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Aerospace 466 Companies 74% 5 employees or less
Rail/Transloading Demand is Escalating
Refrigerated/Frozen Pent up Demand (expanding from 50k SF to 550k SF in 2015)
Tipping Points
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www.CharlestonCommercialMarketForecast.com
www.CharlestonCommercialMarketForecast.com
www.CharlestonCommercialMarketForecast.com
Reducing the Impediments to the Market
Roads (In Process)
• Clements Ferry Rd widening 4 lanes to Jack Primus Rd
• Sheeps Island Interchange and Frontage Rds
• Palmetto Commerce Pky Phase 3 Extension
• Palmetto Commerce Pky, new 1-26 Interchange
• New Airport Entrance and I-526/Montague redesign
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Clements Ferry Rd widening 4 lanes
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Sheeps Island Interchange
and Frontage Roads
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Palmetto Commerce PkyPhase 3 Extension
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Palmetto Commerce PkyI-26 Interchange
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New Airport Entrance
1-526/Montague
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Reducing the Impediments to the Market
New Construction
350k SF
Class A Flex?
274k SF
140k SF
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Crosspoint
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Pattillo
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MWV
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Flex
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Next Year: Still BETTER?
More Port expansion investment and increased activity
More Boeing and Aerospace expansions in the market
New Class A buildings delivered
More activity further west on 1-26 to Jedburg and beyond
Increasing rents and longer leases
Renovations of Class C properties?