Southeast Industrial Labor Report_Q1 2024
REPORT LABOR SOUTHEAST INDUSTRIAL Q1 2024
cushmanwakefield.com
SOUTHEAST INDUSTRIAL OVERVIEW ALTHOUGH DEMAND HAS NORMALIZED ACROSS THE SOUTHEAST, THE SURGE IN MANUFACTURING COUPLED WITH HISTORICALLY HEALTHY MARKET FUNDAMENTALS CONTINUES TO EMPHASIZE THE IMPORTANCE OF SKILLED AND AFFORDABLE LABOR ACROSS THE REGION. This report highlights the 15 key metropolitan areas in the Southeast across Virginia, North Carolina, South Carolina, Tennessee, Georgia, and Florida, looking at the interplay between supply and demand for industrial labor in the warehousing and manufacturing sectors and the supply and demand for industrial space. This report is intended to provide macro-level labor market indicators and is not meant for site selection and decision-making purposes. Please contact our Location & Labor Analytics team for a customized, location-specific labor analysis.
BEN HARRIS Senior Managing Director, Client Solutions & Strategy Logistics & Industrial Services – Americas Direct: +1 912 414 2129 ben.harris@cushwake.com
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Cushman & Wakefield | Southeast Industrial Labor Report
SOUTHEAST INDUSTRIAL KEY TAKEAWAYS With 39.3 million residents within the 15 major metros included in this report, the population of the Southeast has grown substantially over the past decade. The region will continue to record some of the most pronounced growth in the nation with a projected 6.1% population increase over the next five years, almost doubling the expected national rate of 3.3%.
Southeastern states are dedicated to creating warehouse and manufacturing opportunities in and around their major metros. Warehouse job opportunities are expected to grow by 5.2% Over the next five years in the southeast, and production jobs by 2.7%—Both well beyond the national employment growth projections in these sectors.
The region also experienced an industrial boom to meet the growing demand of the increased populace, and a plethora of industries have located to and expanded in the Southeast. In recent years, this was driven by e-commerce and 3PL companies, and more recently, a surge in manufacturing businesses continues to fuel industrial demand.
The labor pool has increased in tandem with the rise in industrial businesses. Southeast markets have a higher concentration of the sector’s target blue collar demographic than the nation as a whole.
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Cushman & Wakefield | Southeast Industrial Labor Report
SOUTHEAST INDUSTRIAL DEMOGRAPHICS
Population 39.3M
Median Household Income $65,670
Working Age Population (Ages 18-64) 24.0M
Labor Force 21.1M
6.1%
Projected Population Growth ((5-Year)
VA
Hampton Roads
Educational Attainment: % of Total Pop. Age 25+ with High School to Associates Degree
Greensboro/ Winston-Salem
46.3%
Raleigh-Durham
NC
Nashville
Charlotte
TN
Greenville
SC
Columbia
Memphis
Atlanta
Charleston
4-Position Warehouse Average Hourly Wage $21.51 4-Position Production Average Hourly Wage $21.88
GA
Savannah
Jacksonville
Orlando
FL
Tampa
Demographic and labor statistics reflect 15 key metros included within report, not entire Southeast region.
South Florida
Source: Economic Research Institute, Experian
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Cushman & Wakefield | Southeast Industrial Labor Report
SOUTHEAST INDUSTRIAL INDUSTRIAL WAGES
VIRGINIA
NORTH CAROLINA
SOUTH CAROLINA
TENNESSEE
GEORGIA
FLORIDA
WAREHOUSE WAGES
U.S. AVERAGE
SOUTHEAST AVERAGE
Hampton Roads
Charlotte
Triad
Raleigh-Durham Greenville
Columbia
96 96
Nashville
Memphis
Atlanta
Savannah
Jacksonville
Orlando
Tampa South Florida
Index
100
101
99
103
96
102
96
93
103
100
104
103
100
98
103
100
4-Position Warehouse Average Materials Handler Warehouse Selector Forklift Operator Maintenance Associate
$21.34
$21.51
$21.14
$22.01
$21.41
$21.69
$20.50
$19.90
$20.55
$21.93
$21.44
$22.19
$21.94
$21.31
$20.95
$21.93
$21.32
$19.67
$20.34
$19.65 $19.38 $20.73 $24.79
$20.94
$18.67
$19.94
$19.15
$18.30
$19.14
$20.71
$20.69 $19.07 $21.87 $24.12
$20.92 $20.07
$21.38
$20.70
$19.82
$20.65 $20.39
$20.44
$19.75
$19.62
$19.83
$19.01
$20.03
$18.74
$18.29 $19.35 $23.64
$18.83
$19.90
$19.73
$19.29
$19.40
$18.81
$20.78
$21.50 $24.57
$22.24 $25.04
$19.78 $24.16
$21.11
$20.24 $23.87
$20.25 $23.96
$21.91
$22.17
$22.47
$21.80
$20.86
$21.79
$21.63
$25.17
$25.67
$25.18
$25.59
$24.19
$23.46
$23.71
$24.87
$24.39
VIRGINIA
NORTH CAROLINA
SOUTH CAROLINA
TENNESSEE
GEORGIA
FLORIDA
PRODUCTION WAGES
U.S. AVERAGE
SOUTHEAST AVERAGE
Charlotte
Triad
Raleigh-Durham Greenville
Columbia
Charleston
Nashville
Memphis
Atlanta
Savannah
Jacksonville
Orlando
Tampa South Florida
Hampton Roads
Index
100
99
100
101
95
101
98
95
98
104
98
102
99
97
97
101
100
4-Position Production Average Production Laborer
$22.00
$21.88
$22.00
$22.26
$21.00
$22.16
$21.50
$20.85
$21.58
$22.86
$21.64
$22.51
$21.88
$21.26
$21.28
$22.13
$21.97
$18.49 $21.77 $22.56
$19.11
$18.50 $21.97 $22.77
$19.54
$17.50
$18.72
$17.99 $21.67 $22.47
$17.19
$17.98 $21.78 $22.58
$19.47
$19.44
$19.60 $21.99 $22.84
$20.18
$19.52
$18.69 $21.00
$19.44
$19.19
Assembler Team Machine Operator
$21.52 $22.31
$21.81
$20.77
$21.71
$20.90
$22.96
$21.10
$21.21
$20.68
$21.72
$21.73
$22.65
$21.55
$22.56
$21.66
$23.82
$21.88
$21.94
$21.39
$21.72
$22.50
$22.55
Maintenance Associate
$25.17
$24.57
$24.79
$25.04
$24.16
$25.67
$23.87
$23.64
$23.96
$25.18
$24.12
$25.59
$24.19
$23.46
$23.71
$24.87
$24.39
WAREHOUSE JOB DESCRIPTIONS
PRODUCTION JOB DESCRIPTIONS
PRODUCTION LABORER Performs tasks
MATERIALS HANDLER Loads, unloads, and moves materials around work site.
WAREHOUSE SELECTOR Picks merchandise for shipment according to current orders, verifying product and quantity accurately.
FORKLIFT OPERATOR Operates forklift and similar equipment to move materials in warehouse, storage yard, or factory.
MAINTENANCE ASSOCIATE Repairs, installs, and maintains machinery, equipment, physical structures, and systems.
ASSEMBLER TEAM Assembles and tests products and machines, maintaining skills and knowledge of entire assembly process in order to rotate between various functions as needed.
MACHINE OPERATOR Operates fabricating machines and determines machine adjustments and material requirements.
that require mainly physical abilities and effort involving little or no specialized skill or prior work experience.
Source: Economic Research Institute
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SOUTHEAST INDUSTRIAL INDUSTRIAL JOB MIGRATION Workers Switching to Transportation/Warehousing and Manufacturing from Other Industries
TRANSPORTATION & WAREHOUSING TRANSPORTATION & WAREHOUSING
2022 2021 2020
125
100
Since 2020, nearly 495,000 employees in Southeast metros changed from roles in other industries into transportation & warehousing jobs. Atlanta, South Florida, Orlando, and Nashville each recorded more than 50,000 job switches.
75
50
(Ths.)
25
-
Hampton Roads Charlotte Greensboro/W-S Raleigh-Durham Greenville
Columbia
Charleston
Nashville
Atlanta
Savannah
Jacksonville
Orlando
Tampa
South Florida
# Job Gains from Other Industries
MANUFACTURING
MANUFACTURING
125
2022 2021 2020
100
75
More than 470,000 workers shifted into manufacturing jobs in key Southeast metros during the same period, led by Atlanta.
50
(Ths.)
25
-
Hampton Roads Charlotte Greensboro/WS Raleigh-Durham Greenville
Columbia
Charleston
Nashville
Atlanta
Savannah Jacksonville
Orlando
Tampa
South Florida
# Job Gains from Other Industries
Source: U. S. Census Bureau
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Cushman & Wakefield | Southeast Industrial Labor Report
SOUTHEAST INDUSTRIAL CRE SUPPLY & DEMAND
ABSORPTION, NEW SUPPLY & VACANCY RATES
Overall Net Absorption Construction Completions Overall Vacancy Rate
ABSORPTION, NEW SUPPLY, & VACANCY RATES
Overall Net Absorption Construction Completions Overall Vacancy Rate
6%
180
MSF
160
167
5%
140
Demand has consistently outpaced supply in the Southeast with nearly 526.6 msf of positive net absorption registered since 2018, including more than 132.0 msf in 2022 alone. Development soared to record-breaking heights in response to consumer demand and population growth, peaking with 166.5 msf of new deliveries in 2023. Construction starts have been limited in the past year, which will allow time for users to lease up the new supply that remains available.
132
130
4%
120
121
100
3%
80
85
81
81
76
72
2%
69
60
67
59
40
1%
20
0%
0
2018
2019
2020
2021
2022
2023
Source: Cushman & Wakefield Research
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Cushman & Wakefield | Southeast Industrial Labor Report
MARKET SPOTLIGHT SOUTHEAST INDUSTRIAL
Click Market Name to View MSA Stats
HAMPTON ROADS, VA
ABSORPTION, NEW SUPPLY, & VACANCY RATES
7
4%
6
MSF
3%
5
4
2%
3
ABSORPTION, NEW SUPPLY & VACANCY RATES
2
1%
Overall Net Absorption Construction Completions Overall Vacancy Rate
1
0
0%
2018
2019
2020
2021
2022
2023
DEMOGRAPHICS
Population
2,011,967
Projected Population Change (5-Year)
2.3%
Working Age Population (Ages 18-64)
1,245,456
• Market activity was solid through the first half of 2023 with pent-up demand and limited availability for spaces under 75,000 sf. Leasing slowed during the second half of the year, although smaller transactions remained steady, as rising interest rates coupled with an 11% reduction in TEU volume from the port caused tenant activity for larger spaces to cool. The industrial market has grown substantially in recent years in tandem with the metro’s explosive population growth. • The port remains one of the primary demand drivers for the region’s industrial market. Defense contractors kept the region more active for smaller in-fill requirements than other markets, and to a lesser degree, the food and beverage industry helped drive demand.
Labor Force
1,018,373
Median Household Income
$68,282
Educational Attainment: % of Total Pop. Age 25+ with High School to Associates Degree
49.5%
Target Blue Collar Demographic Volume
173,737
Target Blue Collar Demographic Concentration
0.7
MATERIAL MOVING OCCUPATIONS
PRODUCTION OCCUPATIONS
INDUSTRIAL LABOR
2024 Employment Volume
27,433
52,086
• Wages for industrial workers in Hampton Roads are on par with the U.S. average despite a lower concentration of target blue collar demographics.
Worker Concentration
0.9
0.9
Projected 5-Year Employment Growth
2.7%
0.4%
Average Wages
$21.14
$22.00
Source: Cushman & Wakefield Research, Economic Research Institute, Experian
Wage Index
99
100
Demographics include Norfolk-Portsmouth-Newport News DMA
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CHARLOTTE, NC
ABSORPTION, NEW SUPPLY, & VACANCY RATES
10 12 14 16 18
7%
6%
MSF
5%
4%
0 2 4 6 8
3%
ABSORPTION, NEW SUPPLY & VACANCY RATES
2%
Overall Net Absorption Construction Completions Overall Vacancy Rate
1%
0%
2018
2019
2020
2021
2022
2023
DEMOGRAPHICS
Population
3,075,467
Projected Population Change (5-Year)
7.2%
Working Age Population (Ages 18-64)
1,914,053
• A record delivery total (16.5 msf) in 2023 pushed the vacancy rate higher by 200 bps to 4.5% at year-end. Despite this, demand for industrial space remained strong with 9.1 msf of direct absorption and 8.2 msf of new leasing activity recorded throughout the year. • Charlotte’s superior access to interstates I-77 and I-85 along with a strong industrial labor force helped drive new construction and demand activity in 2023. A new emphasis was placed on electric vehicle related users due to the region’s proximity to lithium mining in Gaston and Cleveland County. • With a projected population increase of 7.2% by 2028 and employment projections in both industrial occupations far exceeding the national rate, Charlotte is poised for continued industrial growth
Labor Force
1,644,700
Median Household Income
$69,498
Educational Attainment: % of Total Pop. Age 25+ with High School to Associates Degree
45.1%
Target Blue Collar Demographic Volume
323,524
Target Blue Collar Demographic Concentration
1.0
MATERIAL MOVING OCCUPATIONS
PRODUCTION OCCUPATIONS
INDUSTRIAL LABOR
2024 Employment Volume
55,045
116,365
Worker Concentration
1.1
1.4
Projected 5-Year Employment Growth
6.5%
3.0%
Average Wages
$22.01
$22.26
Source: Cushman & Wakefield Research, Economic Research Institute, Experian
Wage Index
103
101
Demographics include Charlotte-Concord-Gastonia Metro, Shelby Micro, Albermarle Micro, and Catawba County
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Cushman & Wakefield | Southeast Industrial Labor Report
GREENSBORO/WINSTON-SALEM, NC
ABSORPTION, NEW SUPPLY, & VACANCY RATES
6
5%
5 MSF
4%
4
3%
3
ABSORPTION, NEW SUPPLY & VACANCY RATES
2%
2
1%
Overall Net Absorption Construction Completions Overall Vacancy Rate
1
0
0%
2018
2019
2020
2021
2022
2023
DEMOGRAPHICS
Population
1,721,282
Projected Population Change (5-Year)
3.8%
Working Age Population (Ages 18-64)
1,040,211
• Demand tapered off in 2023 after a strong Q1 with multiple large deals signed. Vacant supply ticked up with speculative deliveries and soft positive absorption.
Labor Force
867,113
Median Household Income
$57,614
• Tenant space requirements contracted in size throughout 2023. A large occupier vacated multiple locations across the Triad, adding vintage supply to the available space options.
Educational Attainment: % of Total Pop. Age 25+ with High School to Associates Degree
49.4%
Target Blue Collar Demographic Volume
251,237
• The Triad’s interconnectivity along the I-85 and I-40 Corridors will maintain the market’s importance as an industrial hub for the Carolinas, with more than 10.3 msf of new product delivered in 2022-2023 and 2.3 msf currently underway. • Greensboro/Winston-Salem has one of the lowest median household incomes in the region at $57,614—significantly lower than the other major North Carolina markets—making it an attractive option for employers.
Target Blue Collar Demographic Concentration
1.3
MATERIAL MOVING OCCUPATIONS
PRODUCTION OCCUPATIONS
INDUSTRIAL LABOR
2024 Employment Volume
33,207
77,539
Worker Concentration
1.3
1.6
Projected 5-Year Employment Growth
2.2%
-0.1%
Average Wages
$21.41
$21.00
Source: Cushman & Wakefield Research, Economic Research Institute, Experian
Wage Index
96
95
Demographics include Winston-Salem Metro, Greensboro-High Point Metro, Burlington Metro, and Mount Airy Micro
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Cushman & Wakefield | Southeast Industrial Labor Report
RALEIGH-DURHAM, NC
ABSORPTION, NEW SUPPLY, & VACANCY RATES
0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10%
-0.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0
MSF
ABSORPTION, NEW SUPPLY & VACANCY RATES
Overall Net Absorption Construction Completions Overall Vacancy Rate
2018
2019
2020
2021
2022
2023
DEMOGRAPHICS
Population
2,362,118
Projected Population Change (5-Year)
8.3%
Working Age Population (Ages 18-64)
1,491,199
• Raleigh-Durham maintains the highest median household income in the region, 18.4% above the Southeast average.
Labor Force
1,318,331
Median Household Income
$77,769
• The Raleigh-Durham industrial market recorded an uptick in vacancy in 2023, rising by 270 bps annually. New deliveries, which totaled nearly 1.9 msf, did not factor heavily into vacancy with only 19.5% remaining vacant by year-end. Occupancy losses in 2023 can be contributed to older Class B spaces which came back to market to close out the year. • Developers continue to seek opportunities in the surrounding counties around Raleigh Durham as land for industrial becomes harder to find due to the rising popularity of Life Sciences and multifamily in the urban core.
Educational Attainment: % of Total Pop. Age 25+ with High School to Associates Degree
37.2%
Target Blue Collar Demographic Volume
155,829
Target Blue Collar Demographic Concentration
0.8
MATERIAL MOVING OCCUPATIONS
PRODUCTION OCCUPATIONS
INDUSTRIAL LABOR
2024 Employment Volume
29,227
56,768
Worker Concentration
0.8
0.9
Projected 5-Year Employment Growth
7.3%
4.7%
Average Wages
$21.69
$22.16
Source: Cushman & Wakefield Research, Economic Research Institute, Experian
Wage Index
102
101
Demographics include Durham-Chapel Hill Metro, Raleigh Metro, Mount Airy Micro and Sanford Micro
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Cushman & Wakefield | Southeast Industrial Labor Report
GREENVILLE, SC
ABSORPTION, NEW SUPPLY, & VACANCY RATES
10 12 14 16 18
0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10%
MSF
0 2 4 6 8
ABSORPTION, NEW SUPPLY & VACANCY RATES
Overall Net Absorption Construction Completions Overall Vacancy Rate
2018
2019
2020
2021
2022
2023
DEMOGRAPHICS
Population
1,503,934
Projected Population Change (5-Year)
6.5%
Working Age Population (Ages 18-64)
906,679
• Demand was limited as the average deal size receded towards the end of 2023.
Labor Force
720,606
• Many new-to-market developers entered Greenville, one of the hottest markets in the Southeast in recent years. Record-setting deliveries added a plethora of Class A bulk warehouse space to the market which has yet to be absorbed. • In addition to the ample new supply, second-generation space returned to the market, including more than 4.0 msf from one large occupier. This caused a spike in vacancy, ending 2023 at 8.6%.
Median Household Income
$59,757
Educational Attainment: % of Total Pop. Age 25+ with High School to Associates Degree
48.0%
Target Blue Collar Demographic Volume
211,848
Target Blue Collar Demographic Concentration
1.3
MATERIAL MOVING OCCUPATIONS
PRODUCTION OCCUPATIONS
INDUSTRIAL LABOR
2024 Employment Volume
27,462
75,334
• The Greenville-Spartanburg area maintains one of the highest concentrations of target blue collar demographics in the Southeast.
Worker Concentration
1.3
1.9
Projected 5-Year Employment Growth
3.5%
1.9%
Average Wages
$20.50
$21.50
Source: Cushman & Wakefield Research, Economic Research Institute, Experian
Wage Index
96
98
Demographics include Greenville-Anderson-Mauldin Metro, Spartanburg Metro, Gaffney Micro, Greenwood Micro, and Gaffney Micro
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Cushman & Wakefield | Southeast Industrial Labor Report
COLUMBIA, SC
ABSORPTION, NEW SUPPLY, & VACANCY RATES
12
6%
10
5%
MSF
8
4%
6
3%
ABSORPTION, NEW SUPPLY & VACANCY RATES
4
2%
Overall Net Absorption Construction Completions Overall Vacancy Rate
2
1%
0
0%
2018
2019
2020
2021
2022
2023
DEMOGRAPHICS
Population
1,287,123
Projected Population Change (5-Year)
4.4%
Working Age Population (Ages 18-64)
783,921
• Demand for first-generation space was concentrated in the first half 2023 with vacant deliveries adding to the supply level in H2.
Labor Force
603,938
Median Household Income
$54,072
• Low-cost space optionality in the Columbia market drove tenant demand as the year progressed.
Educational Attainment: % of Total Pop. Age 25+ with High School to Associates Degree
49.3%
Target Blue Collar Demographic Volume
183,202
• Columbia also offers the most affordable labor in region as the only Southeast market below the $20/hour mark for warehouse wages. This makes it a viable low-cost alternative to neighboring markets with established industrial presences.
Target Blue Collar Demographic Concentration
1.4
MATERIAL MOVING OCCUPATIONS
PRODUCTION OCCUPATIONS
INDUSTRIAL LABOR
2024 Employment Volume
19,308
43,581
Worker Concentration
1.1
1.4
Projected 5-Year Employment Growth
2.7%
0.8%
Average Wages
$19.90
$20.85
Source: Cushman & Wakefield Research, Economic Research Institute, Experian
Wage Index
93
95
Demographics include Columbia Metro, Sumter Metro, Newberry Micro, Orangeburg Micro, and Aiken County
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Cushman & Wakefield | Southeast Industrial Labor Report
CHARLESTON, SC
ABSORPTION, NEW SUPPLY, & VACANCY RATES
12
0% 1% 2% 3% 4% 5% 6% 7% 8%
MSF
10
8
6
ABSORPTION, NEW SUPPLY & VACANCY RATES
4
Overall Net Absorption Construction Completions Overall Vacancy Rate
2
0
2018
2019
2020
2021
2022
2023
DEMOGRAPHICS
Population
827,384
Projected Population Change (5-Year)
7.2%
Working Age Population (Ages 18-64)
515,610
• Demand slowed while supply increased rapidly in 2023. With record deliveries, Charleston was the second fastest growing market in the nation in terms of inventory growth.
Labor Force
428,068
Median Household Income
$70,475
• Developer interest in the Charleston market remains strong post-pandemic with more than 10.8 msf delivered in 2023 and nearly 4.5 msf currently under construction.
Educational Attainment: % of Total Pop. Age 25+ with High School to Associates Degree
44.3%
Target Blue Collar Demographic Volume
48,907
• Charleston offers the most affordable labor of the port-centric markets.
Target Blue Collar Demographic Concentration
0.5
MATERIAL MOVING OCCUPATIONS
PRODUCTION OCCUPATIONS
INDUSTRIAL LABOR
• Though it is the smallest key metro in the region with a population of 827,384, Charleston is among the fastest-growing. Over the next five years, the population is expected to increase 7.2% compared to the national rate of 3.3%.
2024 Employment Volume
11,623
23,744
Worker Concentration
0.9
1.0
Projected 5-Year Employment Growth
5.2%
3.9%
Average Wages
$20.55
$21.58
Source: Cushman & Wakefield Research, Economic Research Institute, Experian
Wage Index
96
98
Demographics include Charleston-North Charleston Metro
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Cushman & Wakefield | Southeast Industrial Labor Report
NASHVILLE, TN
ABSORPTION, NEW SUPPLY, & VACANCY RATES
5%
0 1 2 3 4 5 6 7 8 9 10
MSF
4%
3%
ABSORPTION, NEW SUPPLY & VACANCY RATES
2%
1%
Overall Net Absorption Construction Completions Overall Vacancy Rate
0%
2018
2019
2020
2021
2022
2023
DEMOGRAPHICS
Population
2,165,984
Projected Population Change (5-Year)
9.5%
Working Age Population (Ages 18-64)
1,370,821
• Nashville’s leasing activity remained strong as smaller deal sizes were preferable. Robust construction deliveries drove vacancy higher, but strong move-ins into those newer constructions are expected to lower this figure throughout 2024.
Labor Force
1,247,499
Median Household Income
$70,810
Educational Attainment: % of Total Pop. Age 25+ with High School to Associates Degree
46.5%
• The metro’s population is projected to grow by 9.5% over the next five years—almost three times more than the national growth rate.
Target Blue Collar Demographic Volume
175,013
Target Blue Collar Demographic Concentration
0.8
• Due to Nashville’s central location and expansive modes of transportation, it continued to experience an influx of diverse tenant types. This process is expected to continue in tandem with Nashville’s growing population as companies look to capitalize on a rising consumer base.
MATERIAL MOVING OCCUPATIONS
PRODUCTION OCCUPATIONS
INDUSTRIAL LABOR
2024 Employment Volume
40,897
76,370
Worker Concentration
1.1
1.2
• Nashville’s industrial labor force is among the most well-paid in the Southeast.
Projected 5-Year Employment Growth
7.5%
4.9%
Average Wages
$21.93
$22.86
Source: Cushman & Wakefield Research, Economic Research Institute, Experian
Wage Index
103
104
Demographics include Nashville-Davidson-Murfreesboro-Franklin Metro, Lewisburg Micro, and Shelbyville Micro
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Cushman & Wakefield | Southeast Industrial Labor Report
MEMPHIS, TN
ABSORPTION, NEW SUPPLY, & VACANCY RATES
10 12 14 16 18 20
0% 1% 2% 3% 4% 5% 6% 7% 8%
MSF
ABSORPTION, NEW SUPPLY & VACANCY RATES
0 2 4 6 8
Overall Net Absorption Construction Completions Overall Vacancy Rate
2018
2019
2020
2021
2022
2023
DEMOGRAPHICS
Population
1,366,693
Projected Population Change (5-Year)
2.2%
Working Age Population (Ages 18-64)
827,818
• Although 2023 absorption fell off compared to 2019-2022, the Memphis industrial market is returning to pre-pandemic levels. There were a flurry of new class A deals sign by the end of the year along with several large renewals and expansions signed in the last month. • Construction completions reached an all-time high in 2023 with an annual total of 18.4 msf. Tenants have more options in newer builds and second-generation options throughout all submarkets despite the halt in construction activity. Class A rental rates steadily increased 3.5% year-over-year.
Labor Force
652,724
Median Household Income
$54,190
Educational Attainment: % of Total Pop. Age 25+ with High School to Associates Degree
52.3%
Target Blue Collar Demographic Volume
112,452
Target Blue Collar Demographic Concentration
0.7
MATERIAL MOVING OCCUPATIONS
PRODUCTION OCCUPATIONS
INDUSTRIAL LABOR
• Memphis’s concentration of material moving workers is two times the U.S. average and the highest among the Southeast markets.
2024 Employment Volume
39,901
37,159
Worker Concentration
2.0
1.0
Projected 5-Year Employment Growth
1.9%
0.5%
Average Wages
$21.44
$21.64
Source: Cushman & Wakefield Research, Economic Research Institute, Experian
Wage Index
100
98
Demographics include Memphis-Forrest City Metro
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Cushman & Wakefield | Southeast Industrial Labor Report
ATLANTA, GA
ABSORPTION, NEW SUPPLY, & VACANCY RATES
0% 1% 2% 3% 4% 5% 6% 7% 8% 9%
10 15 20 25 30 35 40
MSF
ABSORPTION, NEW SUPPLY & VACANCY RATES
Overall Net Absorption Construction Completions Overall Vacancy Rate
0 5
2018
2019
2020
2021
2022
2023
DEMOGRAPHICS
Population
6,719,240
Projected Population Change (5-Year)
5.0%
Working Age Population (Ages 18-64)
4,224,438
• Despite a normalization to pre-pandemic levels, Atlanta recorded 24.0 msf of leasing activity in 2023, among the top 10 in the nation.
Labor Force
3,809,579
Median Household Income
$74,088
• At 5.5%, direct vacancy remained well below the historic average, despite 32.9 msf in annual construction completions (an additional 1.0% of sublease vacancy contributed to the overall figure). • Atlanta’s access to significant coastal and inland ports, coupled with Georgia’s business friendly environment and the entry of major automotive and battery-related companies, makes it attractive to manufacturing and distribution users. The metro is also attractive option for workers who are drawn by the high wages Atlanta offers in a persistently tight national labor market.
Educational Attainment: % of Total Pop. Age 25+ with High School to Associates Degree
43.7%
Target Blue Collar Demographic Volume
535,932
Target Blue Collar Demographic Concentration
0.8
MATERIAL MOVING OCCUPATIONS
PRODUCTION OCCUPATIONS
INDUSTRIAL LABOR
2024 Employment Volume
131,876
204,141
Worker Concentration
1.2
1.2
Projected 5-Year Employment Growth
4.7%
2.0%
Average Wages
$22.19
$22.51
Source: Cushman & Wakefield Research, Economic Research Institute, Experian
Wage Index 102 *Demographics include Atlanta-Athens-Sandy Springs Metro, Rome Metro, Gainesville Metro, Dalton Metro, Calhoun Micro, and LaGrange Micro 104
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Cushman & Wakefield | Southeast Industrial Labor Report
SAVANNAH, GA
ABSORPTION, NEW SUPPLY, & VACANCY RATES
25
0% 1% 2% 3% 4% 5% 6% 7% 8%
MSF
20
15
ABSORPTION, NEW SUPPLY & VACANCY RATES
10
5
Overall Net Absorption Construction Completions Overall Vacancy Rate
0
2018
2019
2020
2021
2022
2023
DEMOGRAPHICS
Population
839,131
Projected Population Change (5-Year)
6.5%
Working Age Population (Ages 18-64)
508,187
• Exceptional growth persisted as nearly 21.2 msf of industrial product was delivered in 2023. Despite 15.6 msf of space getting absorbed in that time, vacancy jumped following years of record-breaking supply constraints.
Labor Force
410,395
Median Household Income
$62,436
Educational Attainment: % of Total Pop. Age 25+ with High School to Associates Degree
50.2%
• Industrial demand is closely tied to the success of the Port of Savannah and its aggressive plan to enhance terminal operations and expand container-handling capabilities.
Target Blue Collar Demographic Volume
90,171
Target Blue Collar Demographic Concentration
1.1
• Employment growth projections are strong in both industrial occupation segments. Hyundai’s EV Plant—a 14-msf facility slated to begin manufacturing vehicles by October 2024—will serve as a major economic generator with projections to generate 8,100 jobs.
MATERIAL MOVING OCCUPATIONS
PRODUCTION OCCUPATIONS
INDUSTRIAL LABOR
2024 Employment Volume
16,151
19,712
Worker Concentration
1.4
0.9
Projected 5-Year Employment Growth
5.4%
4.1%
Average Wages
$21.32
$21.97
Source: Cushman & Wakefield Research, Economic Research Institute, Experian
Wage Index
100
100
Demographics include Savannah Metro, Hilton Head Island-Bluffton-Beaufort Metro, Hinesville Metro, Jesup Micro, and Statesboro Micro
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Cushman & Wakefield | Southeast Industrial Labor Report
JACKSONVILLE, FL
ABSORPTION, NEW SUPPLY, & VACANCY RATES
6%
0 1 2 3 4 5 6 7 8
5%
MSF
4%
3%
ABSORPTION, NEW SUPPLY & VACANCY RATES
2%
Overall Net Absorption Construction Completions Overall Vacancy Rate
1%
0%
2018
2019
2020
2021
2022
2023
DEMOGRAPHICS
Population
1,798,003
Projected Population Change (5-Year)
8.6%
Working Age Population (Ages 18-64)
1,094,724
• 2023 was a historic year for Jacksonville as leasing activity, net absorption, and construction completions all reached record high totals. As new speculative space delivered throughout the year, vacancy increased from the all-time low of 2022. At 4.3% at the end of 2023, it was on-par with the market’s historical average. • Jacksonville’s robust pipeline deliveries were a massive driver across the board for the market’s metrics. Two 1.0-msf buildings were delivered, leased, and absorbed by Sam’s Club and Total Distribution in 2023.
Labor Force
1,033,685
Median Household Income
$65,665
Educational Attainment: % of Total Pop. Age 25+ with High School to Associates Degree
49.6%
Target Blue Collar Demographic Volume
195,013
Target Blue Collar Demographic Concentration
1.0
MATERIAL MOVING OCCUPATIONS
PRODUCTION OCCUPATIONS
INDUSTRIAL LABOR
• Jacksonville has the highest labor force participation rate in the region at 97.8%.
2024 Employment Volume
28,914
38,690
Worker Concentration
0.9
0.7
Projected 5-Year Employment Growth
7.0%
5.0%
Average Wages
$21.94
$21.88
Source: Cushman & Wakefield Research, Economic Research Institute, Experian
Wage Index
103
99
Demographics include Jacksonville Metro, St. Marys Micro, and Palataka Micro
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Cushman & Wakefield | Southeast Industrial Labor Report
ORLANDO, FL
ABSORPTION, NEW SUPPLY, & VACANCY RATES
6
0% 1% 2% 3% 4% 5% 6% 7% 8%
5 MSF
4
3
ABSORPTION, NEW SUPPLY & VACANCY RATES
2
Overall Net Absorption Construction Completions Overall Vacancy Rate
1
0
2018
2019
2020
2021
2022
2023
DEMOGRAPHICS
Population
4,318,562
Projected Population Change (5-Year)
9.0%
Working Age Population (Ages 18-64)
2,599,128
• Orlando maintained healthy fundamentals throughout 2023 despite a normalization in leasing activity, especially preleasing. A historic year for new deliveries contributed to a YOY rise in both vacancy and asking rents, up 120 bps and 18.3% respectively, as new, vacant, premium space hit the market. • Robust activity in previous years had left Orlando at a record low vacancy rate entering 2023. The influx of over 5.3 msf of new inventory throughout the year was instrumental in the markets sustained health, with a further 4.7 msf under construction at year end. • Orlando’s population is projected to grow 9.0% over the next five years, emphasizing the future demand for industrial and logistics space in the market. As a result, industrial labor growth will outpace both the U.S. and Southeast.
Labor Force
2,415,367
Median Household Income
$61,412
Educational Attainment: % of Total Pop. Age 25+ with High School to Associates Degree
49.2%
Target Blue Collar Demographic Volume
654,244
Target Blue Collar Demographic Concentration
1.3
MATERIAL MOVING OCCUPATIONS
PRODUCTION OCCUPATIONS
INDUSTRIAL LABOR
2024 Employment Volume
67,955
82,764
Worker Concentration
1.0
0.6
Projected 5-Year Employment Growth
7.5%
5.2%
Average Wages
$21.31
$21.26
Source: Cushman & Wakefield Research, Economic Research Institute, Experian
Wage Index
100
97
Demographics include Deltona-Dayton Beach-Ormond Beach Metro, Orlando-Kissimmee-Sanford Metro, The Villages Metro, and Lakeland-Winter Haven Metro
/ 20
Cushman & Wakefield | Southeast Industrial Labor Report
TAMPA, FL
ABSORPTION, NEW SUPPLY, & VACANCY RATES
0 1 1 2 2 3 3 4 4 5
7%
6%
MSF
5%
4%
3%
ABSORPTION, NEW SUPPLY & VACANCY RATES
2%
Overall Net Absorption Construction Completions Overall Vacancy Rate
1%
0%
2018
2019
2020
2021
2022
2023
DEMOGRAPHICS
Population
4,608,286
Projected Population Change (5-Year)
6.6%
Working Age Population (Ages 18-64)
2,650,420
• In 2023, vacancy remained tight, concluding the year at 4.3%, significantly below the five year average of 5.4%. Despite leasing activity normalizing to 5.2 msf, representing a 38.8% YOY decrease, overall absorption reached 3.7 msf, marking the second-highest volume ever documented, second only to the unprecedented levels recorded in 2021. • Tenants demonstrated a strong preference for new construction, with 83.7% of the 3.1 msf delivered already leased. Meanwhile an additional 3.3 msf is currently under construction, 57.0% of which has been preleased.
Labor Force
2,294,678
Median Household Income
$62,347
Educational Attainment: % of Total Pop. Age 25+ with High School to Associates Degree
50.0%
Target Blue Collar Demographic Volume
557,421
Target Blue Collar Demographic Concentration
1.1
MATERIAL MOVING OCCUPATIONS
PRODUCTION OCCUPATIONS
INDUSTRIAL LABOR
• Wages for industrial workers in Tampa are the lowest of the major Florida metros, remaining below the national average.
2024 Employment Volume
57,552
87,402
Worker Concentration
0.8
0.7
Projected 5-Year Employment Growth
6.1%
3.3%
Average Wages
$20.95
$21.28
Source: Cushman & Wakefield Research, Economic Research Institute, Experian
Wage Index
98
97
Demographics include Tampa-St. Petersburg-Clearwater Metro, Homosassa Springs Metro, and North Port-Sarasota Metro
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Cushman & Wakefield | Southeast Industrial Labor Report
SOUTH FLORIDA, FL
ABSORPTION, NEW SUPPLY, & VACANCY RATES
14
5%
12
MSF
4%
10
3%
8
6
ABSORPTION, NEW SUPPLY & VACANCY RATES
2%
4
1%
Overall Net Absorption Construction Completions Overall Vacancy Rate
2
0
0%
2018
2019
2020
2021
2022
2023
DEMOGRAPHICS
Population
6,723,614
Projected Population Change (5-Year)
3.3%
Working Age Population (Ages 18-64)
4,049,742
• With more than 6.7 million residents across the Miami, Broward, and Palm Beach markets, South Florida maintains the largest population among the major Southeast metros.
Labor Force
3,660,830
Median Household Income
$62,917
• Industrial vacancy was tight at the end of 2023, below the 3% mark. Though developers were bullish, delivering nearly 19.4 msf of new construction over the past three years, demand for new product limited significant increases in available space.
Educational Attainment: % of Total Pop. Age 25+ with High School to Associates Degree
44.2%
Target Blue Collar Demographic Volume
996,110
Target Blue Collar Demographic Concentration
1.3
• Nearly 10.0 msf of projects remained underway at the end of 2023, but sustained tenant demand and land constraints will limit over-development.
MATERIAL MOVING OCCUPATIONS
PRODUCTION OCCUPATIONS
INDUSTRIAL LABOR
2024 Employment Volume
86,417
112,122
Worker Concentration
0.8
0.5
Projected 5-Year Employment Growth
3.9%
1.7%
Average Wages
$21.93
$22.13
Source: Cushman & Wakefield Research, Economic Research Institute, Experian
Wage Index
103
101
Demographics include Miami-Fort Lauderdale-West Palm Beach Metro, Port St. Lucie Metro, Sebastian-Vero Beach Metro, and Key West Micro
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Cushman & Wakefield | Southeast Industrial Labor Report
LABOR SOUTHEAST INDUSTRIAL REPORT cushmanwakefield.com
INDUSTRIAL LABOR ANALYTICS TEAM
AUTHORS
CHRISTA DILALO Research Director, Southeast christa.dilalo@cushwake.com
ALEXIS FORREST Southeast Research Analyst alexis.forrest@cushwake.com
JASON MCCORMICK jason.mccormick@cushwake.com
MATT NIEHOFF matt.niehoff@cushwake.com
BEN HARRIS ben.harris@cushwake.com
LOCAL RESEARCH CONTRIBUTORS
HAMPTON ROADS Liz Greving liz.greving@thalhimer.com
NASHVILLE Jordyn Stallings jordyn.stallings@cushwake.com
CAROLINAS JP Price jp.price@cushwake.com
GEORGIA Audrey Giguere audrey.giguere@cushwake.com
FLORIDA Eric Messer eric.messer@cushwake.com Josh Faircloth joshua.faircloth@cushwake.com Connor Steele connor.steele@cushwake.com Connor Salzman connor.salzman@cushwake.com
Drew Walters andrew.walters@cushwake.com Madelyn Davis madelyn.davis@cushwake.com Nick DiPaola nicholas.dipaola@cushwake.com
Alex Kaplan alex.kaplan@cushwake.com
Maija Sunnarborg maija.sunnarborg@cushwake.com
©2024 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources believed to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
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