Introduction The U.S. industrial market shattered records in 2021 and closed the yearwith record gains in occupancy, rental rates and construction activity. Coremarkets across the country have thrived during this time, building andabsorbing millions of square feet of industrial real estate. 2022 looks to The emerging industrial markets across the country covered in this reportprovide yield opportunities for investors and expansion opportunities foroccupiers. In this report, we will analyze the 10 markets best poised tobenefit from this growth in depth, provide the area’s population and labor Amanda OrtizColliersNational Director Pete Quinn,SIORColliers 2| 10 Emerging U.S. Industrial Markets to Watch in 2022 | Introduction Table of Contents 24Reno-Sparks28Sacramento32Salt Lake City 4Austin8Charleston12Greenville-Spartanburg Key Strengths: Austin’s industrial market continues to grow at an amazingclip, spurred by rapid population growth, major manufacturingrelocations, and new e-commerce and inventory trends. In thelast year, Austin has seen an average of 184 people moving to thearea every day, a number that increased during the pandemic asemployees earned more flexibility in where they live and work. At Major Logistics Drivers: The Austin market has historically been a final-mile market. Majordistribution centers have long served the area in areas like Dallasand Houston, with smaller satellite warehouses in Austin fulfillingthe localized distribution needs. As the area continues to grow, inparticular in the Austin-San Antonio corridor, population trendsare now supporting larger bulk distribution facilities in immediate “The Austin market is on fire andseems to be reaching a fever pitch ofrising rents, compressing cap rates,tightening vacancy, and significantdeliveries. Based on our populationsize, we believe the market has Chase ClancyVice President, Industrial Vacancy Overall vacancy dropped dramatically in 2021 and ended the year at 3.1%, down from the 7.8% measured duringthe same period in 2020. Vacancy is historically tight in the Austin market across all size ranges. However, with Absorption Occupancy gains of nearly 6.2 million square feet in 2021 illustrates the robustness and activity of Austin’sindustrial market. Absorption hit historic levels in 2021 and was in many ways capped by the number of deliveries Development Responding to significant demand and investor interest in the Austin market, developers have announced newdevelopments at an amazing clip, vastly outpacing the development pipeline of years past. Not only has this drivenup land values, but it’s also pushed the geographic boundaries of the market further north into Georgetown, andfurther south into San Marcos, essentially the halfway point between Austin and San Antonio. Rental Rate & Sales Activity The average industrial asking rate of $12.70 per square foot at the end of 2021 was a whopping 31.9% increaseover the same time last year. Tight vacancy and historically high demand have driven rents significantly higherin the last 12 months, and the trend is expected to continue until a greater portion of the development pipeline South CarolinaCharleston Charleston Leadsthe SoutheastwithElevated “Charleston, SC, continues to demonstratethat it is unquestionably one ofAmerica’s great growth markets on allfronts. Ideally situated on the AtlanticCoast midway between New York andMiami, its internationally recognizedport continues to grow at record ratesand its reputation as a highly livable cityexplains its ever-expanding population.The addition of the state-of-the-artHugh K. Leatherman Terminal, thecountry’s first new container terminal inmore than a decade, in March 2021 nowenables S.C. Ports to welcome growingcargo volumes and mega container shipsand ensures that South Carolina willremain globally competitive for decadesto come. Boeing’s high-profile entryinto the market in 2011 ushered in a Key Strengths: Charleston, SC, continues to grow and attract nationwideattention as an emerging industrial market due to anincreasing need for industrial capacity. The past two years havedemonstrated the strength of Charleston as the port continues tobe the backbone for many companies due to evolving consumerspending patterns and supply chain enhancements. Themaintenance and improvements to the infrastructure throughout Major Logistics Drivers:South Carolina Ports The Charleston ports already have the best port infrastructurein place to handle record shipping volumes. In March 2021, the Hugh K. Leatherman portopened, the first new port to openin the U.S. in over a decade, increasing overall port capacity.Also, the Charleston Harbor Deepening Project is underway toachieve a 52-foot depth in 2022. In addition, recently, CMA CGMannounced their plans to temporarily replace Savannah port calls 2021 Total PopulationAge: 18-34 Mark Erickson,SIORVice President, Charleston Colliers U.S. Research Report | Vacancy Over the past ye