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
- PR Newswire: Sharp Named 2025 Best Place to Work in South Carolina
- Wikipedia: South Carolina
- The State: Industrial Development in South Carolina
- Google Search: South Carolina industrial real estate
- Greenville Business Magazine: Top Workplaces 2025 Winners
- Google Scholar: South Carolina commercial real estate
- Newswire: DIN Development Corporation Named to 2025 Best Places to Work in South Carolina
- Encyclopedia Britannica: South Carolina
- Cola Today: Top Industries and Employers in Columbia, SC
- Google News: South Carolina employment trends
Author: STAFF HERE MYRTLE BEACH
The HERE Myrtle Beach Staff Writers are a collaborative team of journalists, editors, and local contributors passionate about delivering accurate, timely information to the Myrtle Beach community. As part of the HEREcity.com Network, which powers over 100 U.S. city sites including HEREcolumbia.com, our staff draws on collective experience in South Carolina journalism to cover everything from business sales and real estate developments to dining deals and community initiatives. Our Expertise and Background Local Roots in Myrtle Beach Our team includes lifelong Myrtle Beach residents and SC natives with deep knowledge of the area’s history, economy, and culture. We’ve covered key events like the recent developments along the Grand Strand, Myrtle Beach’s tourism and hospitality industry, and growth in local education sectors (e.g., Coastal Carolina University programs). Collective Experience With over 50 combined years in journalism, our staff has backgrounds in print, digital media, and community reporting. We prioritize fact-based stories, drawing from sources like the Myrtle Beach Area Chamber of Commerce, city government records, and on-the-ground interviews. Commitment to Quality Every article is a group effort, involving research, editing, and verification to ensure reliability. We adhere to journalistic standards, citing credible sources and updating content as new details emerge.
