Charleston Industrial Site Selection Package Charleston, South Carolina 2014 Prepared by Mike White, SIOR, CCIM
The “Coming Boom” Boeing Aviation 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
Our Industrial Market Map 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. 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. 3) The Site 1) The Market Map 2) The Industrial Park 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. Our Market map contains the biggest and most prominent industrial parks in Charleston, SC including the Mt. Holly and Jedburg areas. Each Industrial Park has its own individually boxed and numbered buildings that correspond to the numbers on the information sheet. www.charlestonindustrial.com
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 “game-changer”. 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.
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.
The “Great Eastern Migration” The Shift from West Coast ports to East Coast ports NY/NJ Norfolk LA/LB Inland Empire 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.
Transportation Infrastructure • 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. • 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. • 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. 26 85 77 385 385 85 26 385 85 77 26 95 20 • 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. 77 136 95 20 26 26 95 526 526 • 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.
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 • 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
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 • 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. Students at Trident Technical College work on an airplane wing. Labor: • 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.
Available Buildings – August 2014 1 3 2 CROSSPOINT at Palmetto Commerce Park | Class “A+” Industrial Crosspoint Building #1 182,000 SF Fully Leased Boeing Research & Technology JAS Forwarding Crosspoint Building #2 182,000 SF Permit-Ready for Immediate Construction 10 Months to Completion Crosspoint Building #3 75 Acres cleared and ready for immediate build-to-suit construction of up to 1.3 MM SF Crosspoint Building #4 273,000 SF Construction Commenced Available late December 2014 BLDG 4 BLDG2 BLDG1 BLDG 3 Crosspoint Drive Palmetto Commerce Parkway 4 Boeing 737 Propulsion Daimler Boeing 787 Interiors Contact: Mike White Charleston Industrial 843.819.1234 (m) 843.377.8383 (o) 3191 Ashley Phosphate Rd North Charleston, SC Former Radio Shack Distribution Asking Rate: $3.25psf NNN Building Class: B- Total Building Space: 247,000 SF Available Space : 155,719 SF Office Area: 9,703 SF Clear Height: 21’ Air Conditioning: No Broker Contact: Todd Garrett Company: Avison Young 1320 Garrott Avenue Goose Creek, SC Distribution Warehouse Asking Rate: $3.95psf NNN Building Class: B+ Total Building Space: 100,823 SF Available Space : 100,823 SF Office Area: 2,345 SF Clear Height: 30’ Air Conditioning: No Broker Contact: Bob Barrineau Company: CBRE Michael G. White, SIOR, CCIM, Broker-In-Charge I Charleston Industrial I Office: 843.377.8333 I Mobile: 843.819.1234
Available Buildings – August 2014 4 7 6 5 300 Eagle Road Goose Creek, SC Former Briggs Asking Rate: $3.00psf NNN Building Class: B Total Building Space: 284,750 SF Available Space : 284,750 SF Office Area: 12,765 SF Clear Height: 20’ – 30’ Air Conditioning: No Broker Contact: Bob Barrineau Company: CBRE Carmody 7410 Magi Road Hanahan, SC Former Jones Apparel Group Asking Rate: $4.95psf NNN Building Class: A Total Building Space: 302,400 SF Available Space : 151,602 SF Office Area: None Clear Height: 30’ Air Conditioning: Yes, 9 units Broker Contact: Shaun Kirchin Company: Binswanger *Sub-Lease Expires April 29, 2015 5801 North Rhett Avenue North Charleston, SC Distribution Warehouse Asking Rate: $4.25psf NNN Building Class: B Total Building Space: 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: 94,511 SF Office Area Building II: 1,970 SF Clear Height: 24.5’ – 26’ Air Conditioning: No Broker Contact: Lee Allen Company: JLL 1124 Newton Way Summerville, SC Distribution Warehouse Asking Rate: $4.75psf NNN Building Class: A Total Building Space: 342,926 SF Available Space : 146,640 SF Office Area: None Clear Height: 33’ Air Conditioning: No Contact: Josh Jones Company: Johnson Development +94,511 SF LEASED LEASED 212,000 SF Michael G. White, SIOR, CCIM, Broker-In-Charge I Charleston Industrial I Office: 843.377.8333 I Mobile: 843.819.1234
Available Buildings – August 2014 9 8 10 7391 Pepperdam Avenue North Charleston, SC Distribution Warehouse Asking Rate: $3.65psf NNN Building Class: C Total Building Space: 101,500 SF Available Space : 101,500 SF Office Area: 4,500 SF Clear Height: 20’ Air Conditioning: No Broker Contact: Charlie Moore Company: Carolina Commercial 3290 and 3298 Benchmark Drive Ladson, SC Distribution Warehouse Asking Rate: $3.75psf NNN Buildings Class: C Clear Height: 24’ Air Conditioning: No 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: Will Martin Company: Holcombe, Fair & Lane 3298 Benchmark 157,000 SF 100,000 SF 3290 Benchmark . 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 Michael G. White, SIOR, CCIM, Broker-In-Charge I Charleston Industrial I Office: 843.377.8333 I Mobile: 843.819.1234
Available Buildings – August 2014 Crosspoint 787 Interiors 737 Propulsion 7 6 1 2 5 8 3 9 4 10 787 Final Assembly Campus Legend # Available Buildings Active Port Terminal Michael G. White, SIOR, CCIM, Broker-In-Charge I Charleston Industrial I Office: 843.377.8333 I Mobile: 843.819.1234
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.