Transcript the August 2014 Charleston Industrial Site Selection

CHARLESTON INDUSTRIAL
SITE SELECTION PACKAGE
CHARLESTON, SOUTH CAROLINA
2014
Charleston Industrial | Page 1
Prepared by Mike White, SIOR, CCIM
CHARLESTON
INDUSTRIAL
Boeing Aviation
The “Coming Boom”
Wind Turbine
Port of Charleston
Defense
New $750 million Boeing 787 assembly plant next to its two North Charleston fuselage factories. The1.2-million-square-foot Dreamliner
production line opened in December 2011, and is the third site in the world where wide-body commercial jets are assembled
IMO Group (Germany), the worlds leading manufacturer of wind turbine bearings, coming to Charleston; research grant for Clemson
Restoration Institute to build and operate a large wind turbine testing facility
Widening of the Panama Canal scheduled for completion in 2014 to allow post-Panamax ships to pass through; expansion of The Port of
Charleston to accommodate larger ships and increased activity after the widening
SPAWAR and SAIC, major defense contractors and Force Protection, Inc, the creators of MRAP (mine-resistant ambush protected) technology
for armored vehicles
Market Trends: 2013 – 2020 A Decade of Growth Ahead

Overall Market and Demographic Growth

Increasing Sophistication of Industrial Base

Lack of Large Sites, Pressure on Pricing

Proximity to Boeing and Charleston International Airport
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CHARLESTON
INDUSTRIAL
On our website, we feature Charleston’s Industrial Market Map. This
one-of-a-kind mapping tool highlights each of Charleston’s industrial
parks and zones. Our website and digital database is constantly
expanding and being updated as new information flows in.
Our Industrial Market Map
We use this map to help focus our clients on those areas where industrial development is
most likely to take place. We further catalog each of Charleston’s Industrial buildings on
our searchable, digital database. Each building in the database contains the most relevant
information as well as aerial photos to help our clients as much as possible. We can
instantly create detailed tour books that meet our client’s most exacting requirements.
1) THE MARKET MAP
Our Market map contains
the biggest and most
prominent industrial parks
in Charleston, SC
including the Mt. Holly and
Jedburg areas.
www.charlestonindustrial.co
m
Charleston Industrial | Page 3
2) THE INDUSTRIAL PARK
Each Industrial Park has
its own individually boxed
and numbered buildings
that correspond to the
numbers on the
information sheet.
3) THE SITE
Every site in every park has
its own detailed information
sheet just like the one
shown here. This sheet
contains some of the most
important specifications for
each site in order to create
an “at-a-glance” feel.
CHARLESTON
INDUSTRIAL
The Boeing 787 Dreamliner
A New Direction, The 787:
Beginning with the initial offer to airlines in late 2003 to purchase the new Dreamliner jets, the 787 aircrafts have been Boeing’s best selling jets to date. Almost
600 of the airplanes were purchased before any had even rolled out of the factory. Boeing’s revolutionary 787 is known in the aviation industry as the “gamechanger”. Boeing, both as a company and as an aviation-manufacturing leader, has broken new ground along with the production of the 787. First, the 787 is a
revolution on its own, to aviation-manufacturers everywhere because of its state-of-the-art lightweight composite construction. Using lightweight composite
metals such as carbon fiber to construct nearly 50% of the plane by weight makes the 787 a new standard on building commercial jets. These new materials
make the aircrafts lighter allowing them to use 20% less fuel than that of the normal aircrafts today. The 787 Dreamliner is also changing how passengers view
traveling by air. The 787 jets boast comfier seats with more spacious cabins, more cargo space and most importantly, bigger windows.
“The 787 not only will revolutionize air travel, it represents a new way of building airplanes,”
says Scott Strode, 787 vice president of Airplane Definition & Production. The once
isolated Boeing has moved out 70% of the work to build the 787 jets to nearly
50 partners and top-tier suppliers at 135 different sites. This is a very different
manufacturing and assembly process for any aviation-manufacturer but is especially
different for Boeing. Basically, Boeing will have the different parts of the 787
manufactured in different areas to later be shipped to their Washington headquarters
for final assembly and inspection. This complex supply chain is a revolution to industrial
airline manufacturers everywhere.
The Move to Charleston:
After the initial success of the 787 jets, Boeing has announced that they have selected North Charleston as the site for their second 787 manufacturing facility.
The Boeing Company has expressed their confidence in their move to the budding and emerging industrial market that is Charleston, South Carolina. Boeing is
a company that is known for exquisite jet manufacturing but it will now forever be known for revolutionizing the aviation industry. It is flattering that Boeing, at
this time of renovation and ground-breaking decisions chose Charleston, South Carolina as their second home for the manufacturing of the 787 Dreamliner jet.
“The 787 may be a ‘game-changer’ for Boeing,” said United States Congressman James Clyburn, “but Boeing, is a ‘game-changer’ for South Carolina.”
Charleston is also in the process of bringing many new road improvements, many of which are already complete and drivable, to the area around Boeing’s new
manufacturing facility. The new roads will cut travel times between important land parcels, Boeing and the CHS Airport down to mere minutes.
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CHARLESTON
INDUSTRIAL
The Port of Charleston
Ranked the fourth busiest and seventh largest port in the United States, the Port of Charleston has been a major global center of commerce and trade for
over three centuries. Branded as “The Pros of Productivity”, the backbone of the Port of Charleston is its throughput speed and efficiency. More high
crane container lifts are done at this port than any other in the Western Hemisphere. The Port of Charleston also hosts a 45-foot deep harbor at low tide
and with enough space to handle up to 8,400 TEUs. The Port of Charleston is preparing for the rapid increase in shipping containers that will call on the
port after the widening of the Panama canal in 2014. The Port Authority received permits for a new three berth 280-acre terminal at the former Charleston
Naval Base. Construction is scheduled to be completed in 2014. With this expansion the Port of Charleston will have a total of six different terminals at its
disposal all closer to the open sea than any competing East Coast ports. The Port of Charleston is also one of only a handful of ports to have received the
Presidential “E” and “E-Star” awards for excellence in exporting.
Features of The Port of Charleston:
41 moves per hour per crane compared to the U.S. average
at 25 – 27 moves
Handles nearly 1.2 million TEUs annually
The fastest transit times from open sea to dockside on the
East coast, only 1-2 hours
Deepest and widest channels in the Southeast allowing
ships to spend minimal time in-port
 Charleston Customs District ranks as the nation’s sixth
largest in dollar value of international shipments as it
handles cargo valued at more than $55 billion
Trucker turn around time averages only 20 minutes
More than 40 ocean carriers currently offer services in Charleston including all 20 ocean carriers serving U.S. ports
The South Carolina Ports Authority owns and operates 5 terminals in the Charleston area. These terminals collectively handle nearly 1.2
dmillion TEUs annually.
The Port of Charleston is the only port in the Southeast that can efficiently handle post-Panamax vessels up to 8,400 TEUs.
The Port serves more than 150 countries worldwide with 40 steamship lines, including all of the top 20 carriers.
Charleston Industrial | Page 5
CHARLESTON
INDUSTRIAL
The “Great Eastern Migration”
The Shift from West Coast ports to East Coast
ports
NY/NJ
LA/LB
Inland
Empire
Norfolk
Charleston
Savannah
Jacksonville
The ongoing expansion of the Panama Canal will have a significant impact on the industrial warehouse and logistics footprint currently
located around the LA/LB ports and the Inland Empire in Southern California. West Coast ports are expected to see less container volume as
cargo traffic is diverted through the expanded Panama Canal in 2014. The Port of Charleston is expected to see significant increases in TEU
volume and post-Panamax cargo ship traffic as shippers seek to shorten their supply chains and move away from the West Coast ports and
costly cross-country rail movements currently needed to move product to the East. Retailers such as Wal-Mart and Home Depot have built
millions of square feet of warehousing along the East Coast in anticipation of the Canal completion. Charleston’s already deep harbor and
quick access to the Atlantic deep water shipping lanes will ensure that super ships have proper access, turning radius and throughput while
at berth in Charleston. CSX and Norfolk Southern will both provide intermodal rail service and connections to over 30 states through The Port
of Charleston. Charleston is already servicing post-Panamax ships, such as the 1,100 foot long MSC Rita, which traverses the Suez Canal
route linking Asia with the East Coast. We expect to experience a “Great Eastern Migration” as warehouses, suppliers and third party logistics
service providers shift their supply chain footprint from the Western ports to the Eastern ports to handle this increase in container volume.
Charleston Industrial | Page 6
CHARLESTON
INDUSTRIAL
Transportation Infrastructure
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Roadways:
Interstate 26 (east/west) the major highway into and out of
Charleston– runs inland, intersecting with Interstate 95 (north/south)
approximately 55 miles northwest of Charleston. Interstate 26 also
intersects Interstate 77, 20, 85 and 40.
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Interstate 526 (Mark Clark Expressway) – a new, 19-mile inner-belt
freeway connecting Mount Pleasant, North Charleston, and the West
Ashley area of Charleston. The completion of this interstate has reduced
traffic congestion and greatly improved vehicular access in the Trident
area.
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US Highway 17 – parallels the coast; connects with Myrtle Beach
to the north and Savannah, Georgia to the south.
Interstate 95 the largest highway along the Eastern coast of the United States,
runs down from the US / Canadian border in Maine, past Charleston and down
into Miami, Florida, effectively connecting the entire Eastern United States.
Rail:
Norfolk Southern and CSX Systems offer over 40,000 miles of combined freight rail in 23
different states in the eastern United States. Amtrak rail offers passenger service throughout
South Carolina and the United States. Norfolk Southern and CSX provide dedicated
intermodal trains for service to key markets and connect directly to different port terminals in Charleston.
Airport:
A new Charleston International Airport (CHS) was opened in 1985. This new facility is shared with the
Charleston Air Force Base, one of our cities preeminent military founders. The Daily Flights have increased
more than 68% in the past seven years. Charleston International Airport now boasts over 100 flights a day.
Airlines serving Charleston include: Delta, US Airways, Northwest, United Express, Continental and American Eagle. In 2010, Southwest Airlines announced its
move to Charleston as well. Southwest Airlines plans to launch its first flight in March of 2011. Non-stop flights are offered daily to/from: Atlanta, Charlotte, Chicago,
Cincinnati, Dallas/Ft. Worth, Detroit, Houston, Memphis, Miami, Newark, New York/LaGuardia, Philadelphia and Washington/Dulles and Washington/National.
Charleston Industrial | Page 7
CHARLESTON
INDUSTRIAL
Utility Costs and Contacts
Electricity and Natural Gas:
The Greater Charleston is served with a capacity of 11,685 megawatts of power from two facilities
The Charleston region is part of the South Carolina transmission grid, which is served by four generating with a capacity of 19,721
megawatts of power
South Carolina’s industrial and commercial average rates are consistently lower than the United States average
Providers:
• SCANA – SCE&G and Carolina Gas Transmission Corp.
• Santee Cooper
• Berkeley Electric Cooperative
• Edisto Electric Cooperative
Electricity Costs (¢/kwh)
Industrial
5.64
6.54
South Carolina Average
United States Average
Commercial
Source: www.crda.org
8.71
9.58
Water:
Water is a defining feature of the Charleston area. Water is obtained through
local area lakes, rivers and wells. Primarily the Edisto River and the Bushy Park
Reservoir serve the Charleston region. These local water sources eliminate the
expense of importing water from a distant source.
Providers:
• Berkeley County Water & Sanitation Authority (BCW & SA)
• Charleston Water System
• City of Goose Creek
• Dorchester County Water and Sewer
• Moncks Corner Public Works Commission
• Mt. Pleasant Waterworks and Sewer Commission
• North Charleston Sewer District
• Summerville Commissioners of Public Works
Charleston Industrial | Page 8
CHARLESTON
INDUSTRIAL
Charleston Industrial | Page 9
Industries and Employers
CHARLESTON
INDUSTRIAL
Labor and Training
Workforce Training Programs:
One of the lowest unionization rates in the U.S.
One of the lowest work stoppage rates in the U.S. with minimal working time
lost due to strikes in manufacturing and non-manufacturing industries combined
4th best in workforce training programs in the U.S. (Expansion Management.com)
Ranked 6th in the nation based on quality, availability of workers and workforce
training (CNBC)
Customized training through readySC
As a state funded program, readySC is provided at little or no cost to companies creating
new jobs with competitive wages and benefits.
The readySC program offers customized recruitment, assessment, training development,
management and implementation services to qualifying companies.
Workforce Investment Act (WIA) employment and training services
Provided through the Trident One-Stop Career System, the WIA is a public-private
partnership offering employment-related services to both job seekers and employers
Students at Trident Technical College
work on an airplane wing.
Existing industry retraining funds
South Carolina supports existing companies by offsetting a portion of the cost associated with the retraining of qualifying employees.
Companies may be reimbursed up to $500 per employee per year.
Labor:
Berkeley, Dorchester and Charleston County Labor
Statistics
2013 Forecast
Employment Pool:
333,000
Employed
300,546
Unemployed
24,517
Unemployment Rate
7.4%
Charleston Industrial | Page 10
Charleston’s civilian labor force and employment growth from
2000-2009 is far ahead of both South Carolina and the rest of the
United States combined. (CRDA)
Charleston’s workforce has been steadily growing since 2001 and
is showing no signs of slowing down in the near future.
CHARLESTON
INDUSTRIAL
Charleston Industrial | Page 11
Market Trends and Statistics
CHARLESTON
INDUSTRIAL
Charleston Industrial | Page 12
Class “A” Industrial Vacancy
CHARLESTON
INDUSTRIAL
1
Available Buildings – August 2014
CROSSPOINT at Palmetto Commerce Park | Class “A+” Industrial
Crosspoint Building #1
182,000 SF Fully Leased
Boeing Research & Technology
JAS Forwarding
Crosspoint Building #3
75 Acres cleared and ready for
immediate build-to-suit
construction of up to 1.3 MM SF
Crosspoint Building #2
182,000 SF
Permit-Ready for
Immediate Construction
10 Months to Completion
Crosspoint Building #4
273,000 SF
Construction Commenced
Available late December 2014
4
Contact: Mike White
2
1320 Garrott Avenue
Goose Creek, SC
Distribution Warehouse
Asking Rate:
Building Class:
Total Building Space:
Available Space :
Office Area:
Clear Height:
Air Conditioning:
Broker Contact:
Company:
3
$3.95psf NNN
B+
100,823 SF
100,823 SF
2,345 SF
30’
No
Bob Barrineau
CBRE
Charleston Industrial
843.819.1234 (m)
843.377.8383 (o)
3191 Ashley Phosphate Rd
North Charleston, SC
Former Radio Shack Distribution
Asking Rate:
Building Class:
Total Building Space:
Available Space :
Office Area:
Clear Height:
Air Conditioning:
Broker Contact:
Company:
$3.25psf NNN
B247,000 SF
155,719 SF
9,703 SF
21’
No
Todd Garrett
Avison Young
Charleston Industrial | Page 13 Michael G. White, SIOR, CCIM, Broker-In-Charge I Charleston Industrial I Office: 843.377.8333 I Mobile: 843.819.1234
CHARLESTON
INDUSTRIAL
4
7410 Magi Road
Hanahan, SC
Former Jones Apparel Group
*Sub-Lease Expires
April 29, 2015
6
Available Buildings – August 2014
Asking Rate:
Building Class:
Total Building Space:
Available Space :
Office Area:
Clear Height:
Air Conditioning:
Broker Contact:
Company:
$4.95psf NNN
A
302,400 SF
151,602 SF
None
30’
Yes, 9 units
Shaun Kirchin
Binswanger
$4.75psf NNN
A
342,926 SF
146,640 SF
None
33’
No
Josh Jones
Johnson
Development
300 Eagle Road
Goose Creek, SC
Former Briggs
Asking Rate:
Building Class:
Total Building Space:
Available Space :
Office Area:
Clear Height:
Air Conditioning:
Broker Contact:
Company:
7
1124 Newton Way
Summerville, SC
Distribution Warehouse
Asking Rate:
Building Class:
Total Building Space:
Available Space :
Office Area:
Clear Height:
Air Conditioning:
Contact:
Company:
5
$3.00psf NNN
B
284,750 SF
284,750 SF
12,765 SF
20’ – 30’
No
Bob Barrineau
CBRE Carmody
5801 North Rhett Avenue
North Charleston, SC
Distribution Warehouse
Asking Rate:
Building Class:
Total Building Space:
$4.25psf NNN
B
511,782 SF
Available SFBuilding I:
212,000 SF
Suite A: 102,143 SF, 1800 Office SF
Suite B: 109,857 SF, 1795 Office SF
Available SF Building II:
Office Area Building II:
94,511 SF
1,970 SF
Clear Height:
Air Conditioning:
Broker Contact:
Company:
24.5’ – 26’
No
Lee Allen
JLL
Charleston Industrial | Page 14 Michael G. White, SIOR, CCIM, Broker-In-Charge I Charleston Industrial I Office: 843.377.8333 I Mobile: 843.819.1234
CHARLESTON
INDUSTRIAL
8
Available Buildings – August 2014
7391 Pepperdam Avenue
North Charleston, SC
Distribution Warehouse
Asking Rate:
Building Class:
Total Building Space:
Available Space :
Office Area:
Clear Height:
Air Conditioning:
Broker Contact:
Company:
$3.65psf NNN
C
101,500 SF
101,500 SF
4,500 SF
20’
No
Charlie Moore
Carolina Commercial
9
3290 and 3298 Benchmark Drive
Ladson, SC
Distribution Warehouse
Asking Rate:
Buildings Class:
Clear Height:
Air Conditioning:
3290 Building Space: 100,000 SF
3290 Available Space : 100,000 SF
3290 Office Area:
4,500 SF
3298 Building Space: 157,000 SF
3298 Available Space : 157,000 SF
3298 Office Area:
None
Broker Contact:
Company:
10
$3.75psf NNN
C
24’
No
Will Martin
Holcombe,
Fair & Lane
4801-B Rivers Avenue
North Charleston, SC
Distribution Warehouse
Building Class:
B
Total Building Space: 77,642 SF
Available Space :
77,642 SF
(Will not Sub-divide)
Office Area:
912 SF
Clear Height:
23’
Broker Contact:
Bill Edlund
Company:
Palmetto Commercial
Charleston Industrial | Page 15 Michael G. White, SIOR, CCIM, Broker-In-Charge I Charleston Industrial I Office: 843.377.8333 I Mobile: 843.819.1234
CHARLESTON
INDUSTRIAL
Available Buildings – August 2014
2
6
9
Crosspoint
1
787 Interiors
737 Propulsion
5
4
3
8
7
787
Final Assembly
Campus
10
LEGEND
#
Available Buildings
Active Port Terminal
Charleston Industrial | Page 16 Michael G. White, SIOR, CCIM, Broker-In-Charge I Charleston Industrial I Office: 843.377.8333 I Mobile: 843.819.1234
CHARLESTON
INDUSTRIAL
Links to Helpful Websites
Charleston Industrial
www.charlestonindustrial.com - Our website contains the most comprehensive and up-to-date database for all industrial properties in the tri-county a
area. We feature a new system of interactive industrial parks on our homepage (registered members can access full property Information).
Charleston Regional Development Alliance (CRDA)
www.crda.org - The CRDA provides information on the advantages of doing business in Charleston and provides many resources for those
interested in living and/or working in Charleston.
South Carolina State Ports Authority
www.scspa.org - The official South Carolina State Ports Authority main website. This site contains all the information, statistics and future expansion
plans for the Port of Charleston.
South Carolina Department of Commerce
www.sccommerce.com - The South Carolina Department of Commerce’s main website. They provide resources for doing business in Charleston
and
links to recent events in Charleston that pertain to industrial and commercial real estate.
The Post and Courier
www.charleston.net - Charleston’s local newspaper webpage.
Charleston Defense Contractors Association
www.charlestondca.org - The Charleston Defense Contractors Association’s website. A site dedicated to raising local awareness of the industry
cluster and also in establishing the defense contracting companies as a viable entity within the Charleston business community.
Lowcountry Manufacturers Council
www.lmcsc.org - The mission of the Low-country Manufacturers council is to enhance competitiveness and promote development of the
manufacturing sector of the Lowcountry of South Carolina.
South Carolina PowerTeam
www.southcarolinapowerteam.com - This website provides an introduction to the advantages and specific information about industrial parks,
available buildings and sites throughout the state.
County Economic Development
www.berkeleycountysc.gov/dept/economicdev/ - Berkeley County Economic Development website.
www.dorchesterforbusiness.com - Dorchester County Economic Development website.
www.charlestoncounty.org/departments/EconDev/index.htm - Charleston Economic Development Department website.
Charleston Industrial | Page 17