South Carolina December 2021 – Key Take Aways
- SC Ports Authority states that the American consumer is powering the global economy. Consumption of goods is up 25% in US while up 2-3% in other developed countries. Companies are trying to replenish goods. Normalization will not occur until mid or late 2022. Fortunately, in SC, our port has worked and has remained fluid. Charleston has been able to earn their way into deals (such as Walmart) regardless of what the normal decision procedures might suggest. Companies are contacting SC Ports concerning industrial space. There are not enough empty buildings to satiate the demand.
- CoStar says that SC has had an industrial recovery. The increase demand for larger industrial buildings is pushing development inland (Charlotte and Greenville). Multi family continues to see unprecedented rent growth. Charleston is up 17-18%. National investors and builders are looking at Charleston.
- Gallagher is seeing a little bit of stability in the commercial insurance market. Revamping of the national flood insurance program will bring about some changes in next year that will effect pricing.
- NAI Columbia is experiencing a strong market. There is a new industrial park coming to NE Columbia. The office market is strong in spite of Covid. There is a lot of sublease space coming on the market. It remains too be seen how that effects everyday leasing. Investment sales remain high. They are looking forward to finishing off a strong year.
- Tax Credit Marketplace says that volume remains very strong. They currently operate in 48 states with South Carolina remaining the leader. 1031 has been removed from the Build Better Bill. They do not anticipate a slow down. They have projects in 18 different counties.
- Terracon says that there is million sq ft of cold storage coming next year. Roper is leaving downtown which will present many opportunities. There is interest in southeast for car related industries with Toyota coming to NC. Speed is the new price with unrealistic compressed due diligence demands.
- Edifice is a broad general contractor in Charleston, based out of Charlotte. So many people want to build here but build elsewhere because of the slow process. Lead time for roofs is 11-12 months and steel is 9 months. There is a major concern for growth with the slow down of permitting in Berkley County.
- Frampton Construction is multi-faceted general construction firm. They continue to see intense growth in the industrial space. Price escalation, availability of goods and permit timelines continue to be the main struggles.
- Cardinal Financial is a national residential mortgage company. There have been 2 major layoffs with large mortgage companies as rates go up. There was a major hiring surge in the beginning of Covid as there was a rush to refinance. Mores consumers are looking for homes than there are homes available.
- Bohler is swamped and glad to be swamped. Logistics and cold storage demand still high. Migration to the Carolinas brings about more ecommerce. Amazon is looking for urban and suburban sites as they are aiming to provide 5 hour delivery window. Amazon is building multi story warehouses. Data centers sky rocket with19 in NC, and 17 in SC. There continues to be a massive boom for semiconductor manufacturing facilities driven by the auto industry. Multi family high density mixed use still booming in both Carolinas.
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