Charleston’s Recognition & Rankings Best Cities for Job Growth Charleston region ranked 8th, up 17 spots from last year.2010 Best Performing Cities New Geography May 2011Charleston ranked among nation’s top20 “large cities” Americas Favorite CitiesMilken Institute Charleston ranks #1October 2010 Travel + Leisure Magazine November 2010Best Towns of 2011Charleston ranked 5th Worlds Best CityOutside Magazine Charleston ranked #3 inSeptember 2011 the world CNNGo October 2011Best Places for Business& Careers #1 in North AmericaCharleston MSA ranked in #3 in the worldtop 50 Tourist DestinationForbes July 2011 Conde’ Nast Traveler October 2011
Significant Developments Boeing’s 2nd 787 Dreamliner assembly line • Est: 15,000 jobs (direct & indirect) $5.9 billion statewide impactWind Turbine Drive Train Testing Facility• $98 million DOE-backed facility – one of only three and largest in the world • Est: 20,000 jobs (direct & indirect) statewide• Opportunity to attract global manufacturing & R&D investments Southwest Airlines • Began service March 13, 2011
Population Trends800,000700,000600,000500,000400,000300,000200,000100,000 0 1950 1960 1970 1980 1990 2000 2010 2020 est.
Employment By Sector Natural Resources, Mining, & Construction Manufacturing 5% 20% 8% Wholesale Trade 3% Retail Trade Transportation and Utilities 3% Information 13% Financial Activities12% Professional and Business Services 4% Education and Health Services 2% Leisure and Hospitality 4% 12% Other Services 14% Government
Target Tactics Advanced WindSecurity & IT Aerospace Biomedical Energy Recruit Recruit Recruit Recruit Retain/ Expand Retain/ Retain/ Expand Expand Retain/ Expand Startup Startup Startup Startup Immediate Immediate Mid- to Mid- to To Mid-Term Long-Term Long-Term
AerospaceBoeing 787 Assembly Operation – 5,900 employees – $ 4.6 billion annual economic impact – One of three places in world – First delivery 2nd Qtr 2012
The Port of Charleston$44.8 billion economic impact ($7 billion in the Charleston region)260,800 jobs (50,000+ in the Charleston region)Cargo Diversification Strategy – 1.4 million TEUs – BMW – RO/RO – Breakbulk CargoNew $500 million terminal
Panama Canal Game Changer 33.5m (110’) Current Locks Vessel Max: 4,800 TEUs Draft 12.04 m (39.5’) 12.8m (42’) Draft 15.2 m (50’) 55m (180’) New Locks 18.3m (60’) Vessel Max : 12,600 TEUs*Courtesy of Panama Canal Authority
MSC Northern Justice 8,440 TEU / 1090’ LOACharleston Harbor / May 12, 2010
Medical Industry• 10 major medical centers• 2,000 physicians• Medical centers locally employ 20,000 +• 26,000 total workers in healthcare services industry• $243 million R&D at MUSC for fiscal year 2011, marking the 15th consecutive year of continuous growth
Joint Base Charleston• $4.7 billion annual economic impact• 29,000 active, civilian and contract personnel• Airlift, Sealift and Prepositioning - One of top ranked military strategic ports - One of 12 Joint Base initiatives• SPAWAR Atlantic - 2,600 employees - 8,000 contract workers / 80+ defense contractors - 6,000 visitors per year
Joint Base Charleston• Navy Nuclear Training Command / Training School - 3,200 students per year• Federal Law Enforcement Training Center - Maritime Law Enforcement Training - 12,500 annual graduates• State Department - 800 employees - Global Financial Services, Passport Office
Key Challenges• Workforce Skills/Education• Infrastructure• International Business Location• Managing Growth
Mary Graham, CCR, IOM, CCE Sr. Vice President Business Advocacy 843.805.3043 firstname.lastname@example.org l est on m r o cham et ber of com er ce m
DOD to Ask for Two NewBRAC Rounds, Sources SayJanuary 25, 2012The Pentagon is planning to requestCongress authorize two new baseclosure rounds to help the departmentcut almost a half a trillion dollars inspending over the next decade, AirForce Times reported Wednesday.Officials would request one BRAC round in 2013 andthe next in 2015, one source told the publication. Thedepartment’s intention to conduct one or more BRACrounds is not unexpected given the current budgetenvironment. Many officials already believed the 2005round failed to eliminate all of the department’sexcess capacity. Also, the spending cuts imposed onthe military are expected to result in the eliminationof tens of thousands of troops and cuts in aircraftorders, further reducing the need for militaryinfrastructure.Closures likely woulddisproportionately fall on Army andAir Force installations due to thespecific cuts planned, the Timesreported.
Avg. Asking Rental Rates $28 $26 $24 $22 $20 $18 2007 2008 2009 2010 2011 Class A Class B
22 Relevant Office Properties Changed Hands in 20113 (14% of total sales) Bank owned buildings • average of $96/sf in partial shell condition9 (41% of total sales) Bank owned condos • average of $129/sf in completed condition7 (32% of total sales) Market type buildings arms length transactions • average of $182/sf3 (14% of total sales) Market type condo transactions • averaging $130/sf
Institutional Movement• Hospitals purchasing medical practices to control referral sources & income stream• Doctors selling for fixed income/security during uncertain times especially regarding possible future cuts in reimbursements
Mt. Pleasant since 4/2010 • MUSC – Specialty Care 84,000 SF Dr.’s will relocate in the 2nd and 3rd quarter of 2012 Vacancy will rise throughout Mt. Pleasant • East Cooper Hospital 250,000 SF 130 Beds • Roper Hospital 200,000 SF 85 Beds
Carnes Crossroads / Moncks Corner Carnes Crossroads Plans Moncks Corner Plans 146,000 SF 145,000 SF 50 Beds 50 Beds * Appeals from both parties need to be worked out in the courts before final approval.