Strategic Real Estate Acquisitions in High-Growth Southeast Industrial Markets: How Penzance's Southgate 77 Purchase Reflects a Logistics Gold Rush

The Southeastern United States has emerged as a gravitational pull for industrial real estate investors, driven by a perfect storm of logistics demand and supply constraints. With e-commerce growth, nearshoring trends, and infrastructure bottlenecks converging, the region's industrial markets are outpacing national averages in rent growth and occupancy rates. Penzance's recent acquisition of Southgate 77-a 220,000-square-foot Class A warehouse in Rock Hill, South Carolina-exemplifies how savvy investors are capitalizing on these dynamics. Let's unpack why this deal is more than just a property purchase: it's a blueprint for navigating the new industrial economy.

A Strategic Move into a High-Growth Corridor

Penzance's acquisition of Southgate 77 marks its first foray into South Carolina's industrial market, a state that has become a linchpin in the Southeast's logistics network. Located in Rock Hill, just 30 minutes from Charlotte, the property sits at the intersection of I-77 and I-485, offering prime access to one of the fastest-growing industrial markets in the U.S. Built in 2024, the facility features modern infrastructure tailored for e-commerce and light manufacturing, including high ceilings, dock-high loading doors, and advanced security systems. Colliers, the sole advisor on the transaction, highlighted the property's "strategic positioning" to serve the Charlotte region's expanding logistics needs.

This move aligns with a broader trend: the Southeast's industrial real estate market is now the most active in the country, with developers racing to meet demand while grappling with limited land availability and permitting delays. For Penzance, Southgate 77 isn't just a single asset-it's a foothold in a market where vacancy rates are collapsing and rents are surging.

Charlotte's Industrial Market: A Case Study in Supply-Demand Imbalance

To understand the significance of Southgate 77, we must look at the Charlotte market's fundamentals. According to Q3 2025 data from CBRE, vacancy rates in Charlotte's industrial sector have plummeted to 7.8%, down from 9.2% in Q1 2025. Meanwhile, average rents have climbed to $10.04 per square foot, a 97-basis-point increase quarter-over-quarter. This surge is fueled by a mismatch between demand and supply: while developers have started 4.0 million square feet of new construction in Q3, this represents a 13.3% decline from the previous quarter, underscoring the difficulty of scaling up quickly in a constrained market.

The Charlotte metro area's appeal is further amplified by its role as a distribution hub for the Carolinas and beyond. With Amazon, Walmart, and other logistics giants expanding their footprints, the region's industrial demand shows no signs of slowing. For Penzance, acquiring an asset like Southgate 77-fully built out and immediately operational-positions the company to capture this demand without waiting for speculative developments to break ground.

Beyond Southgate 77: A Southeast Expansion Playbook

While Penzance's broader Southeast strategy remains undisclosed, the Southgate 77 acquisition suggests a focus on "last-mile" and regional distribution hubs in markets with strong infrastructure and demographic tailwinds. The Southeast's combination of lower labor costs, business-friendly policies, and proximity to major ports (e.g., Savannah, Charleston) makes it an ideal target for logistics players.

Investors looking to replicate this strategy should prioritize assets in secondary markets like Rock Hill, where land and construction costs remain lower than in coastal hubs like Atlanta or Charlotte. The key is to identify properties with immediate access to major highways and existing workforce infrastructure, ensuring they can serve as nodes in the increasingly complex supply chains of the post-pandemic economy.

The Bigger Picture: Industrial Real Estate as a Macro Hedge

Penzance's move reflects a broader shift in real estate investment logic. As inflationary pressures persist and interest rates stabilize, industrial assets-particularly those in high-demand, low-supply markets-are becoming critical hedges against macroeconomic uncertainty. The Southeast's industrial sector, with its structural supply constraints and inelastic demand, offers a compelling case for long-term capital appreciation.

For now, Southgate 77 stands as a testament to the power of strategic timing and location. As Penzance and others continue to deploy capital in this space, the Southeast's industrial real estate market will likely remain a focal point for investors seeking to future-proof their portfolios.