6 Commercial Real Estate Trends That Will Impact the Lowcountry in 2019
As we look toward the year ahead, we’re taking a look at six trends we expect to shape the Lowcountry commercial real estate market in 2019.
- E-Commerce Influence. As the buying and selling of consumer products
movesonline and customers continue to expect expedited shipping, the need for warehouse fulfillment centers will continue to rise in 2019. E-commerce behemoth Amazon has plans to open a 17,236 square-foot warehouse across from the Exchange Park Fairgrounds in Ladson, and we expect similar operations from variousonline retailer to pop up around the area.
- Reinvestment in Retail. We talked in another blog post about the many benefits that come with a physical storefront in the digital age, and it seems retailers are catching on but in a new way. Online shopping is a way of life and it’s taken the retail industry time to balance out but we saw significant stabilization in 2018. In our quaint tourist town, small boutiques and local treasures will stand firm, but we also expect major retailers to focus more of their attention on physical sales spaces. Taking a cue from Amazon, which recently began opening grocery stores, we may see retailers that have been traditionally digital, bring their products into the real world with storefronts.
- Industrial Demand. We saw industrial real estate boom in 2018 across the country and especially in our backyard thanks in large part to companies like Volvo, Mercedes
andBoeing. As these companies continue to grow and more companies relocate to South Carolina, the demand for warehouses and manufacturing space will only increase. If you’re interested in investing in 2019, learn more here and then get in touch with our team so we can discuss options that are right for you.
- Workforce Housing. With plenty of job opportunities comes a need for affordable housing capable of supporting the Lowcountry’s growing labor force. We think investing in multifamily properties close to major employment hubs will be a smart move in the coming year.
- High Construction Costs, Labor Shortages. Rising construction costs and labor shortages have been a major concern for the past several years across the entire real estate industry and will take center stage in 2019. With more expensive materials and fewer workers, new build projects are more expensive and take longer to complete. Investing in existing space may make more sense but can come with challenges – a solid commercial agent can help you find the perfect space to lease.
- Office Demand Will Remain. With job creation strong and development high, the demand for office space across the area will continue in 2019. Though some reports expect office demand to taper slightly nationwide, we don’t anticipate any significant changes in demand in the Charleston area.
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