Charleston Industrial Figures Q1 2026

The market transitioned over the past few years from tight conditions to a supply‑driven, higher‑vacancy environment, then began a stabilization trend in 2025. Heavy deliveries through 2024, including 4.2 million sq. ft. in Q1 2024 and 3.8 million sq. ft. in Q2 2024, coincided with two quarters of negative net absorption in the second half of 2024 and pushed vacancy from 7.1% in Q1 2024 to 13.0% by Q1 2026, while availability rose from 10.0% to 16.8%.   By Q1 2026, fundamentals showed continued signs of improvement. Net absorption reached 867,000 sq. ft., up 74.1% quarter‑over‑quarter and 42.6% year‑over‑year, as vacancy edged down 40 basis points (bps) from Q4 2025 and 80 bps from Q1 2025. Availability also dipped 1.4% quarter‑over‑quarter. 

At the same time, the construction pipeline had largely cleared: space under construction has fallen 93.1% year‑over‑year, from 2.5 million sq. ft. in Q1 2025 to 175,000 sq. ft. in Q1 2026, while deliveries were 54.0% lower than a year earlier. Therefore, 2026 began with elevated vacancy from prior years but firmer demand, modest 4.9% year‑over‑year rent growth, and a sharply reduced development pipeline.