Should You Invest In Industrial Space in the Lowcountry?
When we think of commercial real estate spaces, visions of sleek office buildings and roadside strip malls spring to mind. But industrial spaces, while not as glamorous, can prove lucrative as they are often less expensive to own and operate than other commercial investments.
South Carolina is quickly becoming an industrial hub and the growth in this sector will only continue. For the investor experienced with other forms of commercial properties, adding industrial or manufacturing space to a portfolio can make a lot of sense. In the Lowcountry, we expect increased industrial activity throughout the region resulting in lower vacancy and higher rental rates, creating a promising outlook for these types of investments.
Here’s a summary on why investing in industrial space in the Lowcountry may be a smart move:
- Typically, industrial buildings perform well over time with a substantial return on investment, but we’re also seeing a recent uptick in popularity of these types of spaces that can be attributed to the growth of online selling and distribution. As more and more commerce moves online, companies are seeking spaces that will help them deliver goods to their customers as fast as possible.
Unlikeshort-term residential leases, industrial space leases typically range from three to ten years, providing more stable
- When done correctly, industrial properties are relatively less expensive to own and operate than residential or typical commercial investments, allowing investors to maintain larger assets with lower ongoing capital costs.
- The Port of Charleston expansion will allow for more business influx, raising the demand for warehouses, manufacturing facilities, and distribution centers in the coming years.
- There is also high demand for warehouse space because of the influx of manufacturing throughout the Lowcountry. We expect to see even more of a need for ancillary operations to support major local companies including Boeing, Volvo, and Mercedes-Benz Vans.
- Companies relocating to South Carolina are helping to spur economic growth, which in turn attracts investors and developers looking for industrial space to carry out their operations.
If you’re interested in learning more about the benefits and opportunities of investing in