News Summary
South Carolina’s industrial real estate sector faces heightened competition as residential builders encroach on the market, tightening availability of prime land. Colliers’ recent report reveals a growing urgency for commercial space, with significant projects such as a new $13.7 million distribution center underway. The impending development for Scout Motors could further spur demand, anticipating over 4,000 jobs by 2027. However, challenges remain as developers strive to balance residential and industrial growth to meet evolving economic needs.
South Carolina is experiencing increased competition in the industrial real estate sector as residential builders enter the market, leading to a tightening of available high-quality industrial land in the Midlands region. This shift is captured in a recent report by Colliers, which highlights a growing urgency in the commercial real estate landscape due to the pressure from these residential developments.
As a concrete example of ongoing industrial development, Fayat Group and Cohn Construction have initiated work on a new $13.7 million distribution center in Ridgeway. This facility will span 100,000 square feet and is a part of wider efforts to bolster the region’s industrial capacity. However, the sector is feeling the pinch, with data indicating that approximately 28% of Class A industrial space has been leased off the market in the last two quarters alone.
Looking ahead, a new speculative development cycle is anticipated as suppliers for Scout Motors seek additional space to support the new manufacturing facility being built in Blythewood. This project represents a significant economic investment, with Scout Motors allocating more than $2 billion towards the creation of a facility expected to generate over 4,000 jobs and have a production capacity of up to 200,000 vehicles annually at peak output. Initial production is forecasted to begin in 2027.
The report outlines that while total leasing activities in the Midlands are expected to increase through the fourth quarter of 2025, there are mid-term challenges facing industrial submarkets. The competition for quality industrial sites, particularly along the increasingly developed Interstate 77 corridor, is noted as a primary concern. Many utility-served, rail-adjacent industrial sites have been effectively removed from inventory due to rising demands from an expanding workforce.
Despite this demand, investment sales in the Midlands are moving at a slower pace amid a challenging economic environment. Reports suggest that developers in the region are encouraged to secure future industrial land to cater to both current and projected market demands. This move is seen as essential for maintaining momentum in industrial growth, especially as the local economy continues to evolve in response to the presence of high-profile projects like that of Scout Motors.
Overall, the Midlands of South Carolina is navigating a complex commercial real estate landscape where residential and industrial interests are vying for the same precious land resources. As demand for industrial space continues to surge, stakeholders in the real estate market must adapt swiftly to ensure sustainable development that accommodates both residential needs and industrial growth.
This complex interplay of demands underscores the necessity for strategic planning and development in the Midlands, which is positioned as a vital connector for businesses and services in an increasingly competitive economic environment.
Deeper Dive: News & Info About This Topic
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Author: STAFF HERE FLORENCE WRITER
FLORENCE STAFF WRITER The FLORENCE STAFF WRITER represents the experienced team at HEREFlorence.com, your go-to source for actionable local news and information in Florence, Florence County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Florence Festival of Lights, Pee Dee Pride, and agricultural expos at the Florence Center. Our coverage extends to key organizations like the Florence Regional Chamber of Commerce and the Pee Dee Area Council of Governments, plus leading businesses in healthcare and retail that power the local economy such as McLeod Health and Pee Dee Electric Cooperative. As part of the broader HERE network, including HERECharleston.com, HEREColumbia.com, HEREGreenville.com, and HEREHiltonHead.com, we provide comprehensive, credible insights into South Carolina's dynamic landscape.
