Crosspoint’s Position in the Charleston Industrial Market

July 26, 2017

A Most Desirable Location: Crosspoint’s Position in the Charleston Industrial Market

Today, more than 35 national and multi-national corporations are doing business along the Palmetto Commerce Parkway. Childress Klein’s Crosspoint project is at the foundation of this thriving global business park that’s positioning the Tri-County area for long-term success. Located within one to two miles of I-26 on either end and positioned only twelve miles from Boeing’s final assembly campus, the Parkway is a well-manicured, six-mile route providing easy access to and from all directions for expedited logistical convenience.

“We at Charleston Industrial were hired by Childress Klein in 2010, and since that time, we have tracked 35 plus industrial transactions as a direct result of the first Boeing plant coming here,” says Mike White, SIOR, CCIM, and founding principal of Charleston Industrial.

“Childress Klein developed Crosspoint, a 335-acre, Class-A industrial site positioned today strategically between Mercedes-Benz Vans, Boeing’s interior fabrications facility, Cummins turbo diesel, and soon the Volvo manufacturing plant, to offer first-class, customized commercial space.”

When Boeing decided to locate its ancillary operations and supplier activities in Charleston County in 2010, the aeronautics giant received not only a major incentives package by local and state government entities, but they reserved the airport properties that adjoin the runways at the Charleston airport for final assembly activities. Boeing’s collection of facilities in the Palmetto Commerce Parkway area is known as its Northern Campus, which includes leased space in Crosspoint Building One for its Research and Technology Center. Boeing’s commitment to the area was just the beginning as other world-class companies soon followed – JAS Forwarding, a French company that supplies parts to Boeing; Tighitco, an InterTech manufacturer of aerospace components; Cowboy USA, an American trucking company; MainOcean, which provides an array of logistics and port services; and Isringhausen, a German global manufacturer of automotive seating – all now have facilities in the area.

“What started as a germ of an idea around our conference table led to an unwavering commitment by our late Chairman Barrett Lawrimore and Charleston County Council,” says Steve Dykes, Charleston County Economic Development Director. “We weren’t in the road-building business until this project, but in 2011 County Council again stepped up to commit some $30 million in Half Cent Sales tax funding for road improvements for the Parkway.

Charleston County provided the basic infrastructure that enabled the private sector to successfully develop a Class A business park. Led by Dykes, the County marketed the park and attracted businesses to relocate and create jobs. The original premise 15 years earlier was ultimately confirmed.

“It wasn’t overnight, it wasn’t easy, and it wasn’t a straight line that we traveled, but at the end of the day, the results speak for themselves,” says Dykes.

Childress Klein, one of the largest commercial real estate developers in the Southeast, has had an enduring presence in the Lowcountry since 1995 when it developed Belk department store’s distribution center in Summerville. It was around that time they became aware of the potential of this strategic expanse.

“In 2008, we purchased the land where Crosspoint sits today,” says Matt Harper, partner with Childress Klein. “At the time, it was strictly a logistics play to capitalize on the success of the port, but today it’s considered the premier location to be positioned within close proximity to area manufacturers to meet ‘Just in Sequence’ delivery requirements.”

Inventory strategies such as ”Just in Sequence” (JIS) and “Just in Time” (JIT) are a variation of assembly line production procedures where components and parts arrive at a production line in a timely manner directly before assembly takes place. Most national and multi-national manufacturers want their suppliers to be located within a ten-mile radius of their facility. If the suppliers can’t meet JIS delivery demands, there are significant consequences that often include financial penalties. Companies along the Palmetto Commerce Parkway have mitigated some of these concerns due to a supply chain that is efficient with convenient and redundant access in and out of the area.

“What’s further attractive about the location is its access to a supply of labor that is qualified to fill positions up and down the pay scale,” says Harper. “The mix of uses tells a good story that’s not just industrial.”

Harper touts the fact that Crosspoint and the Parkway offer an array of advantages in addition to its key location, such as a direct route to the Wando Welch port terminal, major highways, rail, air, neighborhoods of diverse incomes, shopping and lifestyle, and health care. Furthermore, the area sits on high ground, which makes it a safe haven for a corporate campus during severe weather.

“In a low lying area like Charleston, the Parkway sits at 40 feet above sea level, which is crucial during a hurricane,” says Harper. “Beyond that, it has robust and redundant electrical service, which is great for manufacturers and data centers.”

Having researched for a six-month period all existing commercial real estate properties in the Tri-County area to analyze availability, location, logistics and more, Alex Popovich, brokerage associate for Charleston Industrial, agrees that the Palmetto Commerce Parkway is unique.

“I found the design along the Palmetto Commerce Parkway flawless,” says Popovich. “The flow of traffic is like no industrial area in Charleston as the design is specifically intended for quick arrival and departure.”

With more than 5,000 new jobs created and an estimated $162 million in annual payroll being disbursed, Palmetto Commerce Park is an economic engine unlike any other in Charleston. Childress Klein and Charleston Industrial are looking to build on that success with its latest building at Crosspoint, Building Six, which will deliver this fall.

“We will be opening a new 273,000 SF building that will be available for tenant improvements in October,” says White. “In addition, we have room for another six or seven additional buildings of similar and larger sizes.”

For more information on how your company can be a part of Crosspoint’s long-term success along the Palmetto Commerce Parkway, contact Charleston Industrial today at (843) 377- 8383 or visit them at www.charlestonindustrial.com.

PALMETTO COMMERCE PARK FACTS

1996 County solicits state road construction grant, raises funds

1998 Anchor tenant recruited

1999 PHASE I – Completed: $4 million