HILTON HEAD ISLAND — A Charleston firm that specializes in real estate investment and development scooped up a 10,000-square-foot industrial property on Hilton Head Island, betting on a local commercial market where available space is hard to come by.
Stono Group recently purchased the site at 12 Cardinal Rd. on the north end of the island near Hilton Head Island Airport. The property features two 5,000-square-foot warehouse buildings. The price tag on the deal has not been made public.
According to Stono Group officials, the light industrial complex is split into four commercial units and is at total capacity. A local contractor snapped up one suite before the contract period closed, and the remaining suites were already locked down by local businesses.
“Hilton Head and Bluffton represent a unique coastal growth story where rising business demand is colliding with severe supply limitations,” said Kevin Hann, founder of Stono Group. “What attracted us to this acquisition is the opportunity to provide much-needed industrial space for local businesses in one of South Carolina’s most supply-constrained submarkets.”
The recent acquisition points to a larger trend in Beaufort County. Thanks to a decades-long population boom in neighboring Bluffton, now one of the fastest-growing spots in South Carolina, the demand for small-bay workshops and service hubs is exploding.
Building new warehouses on the island has its challenges. Strict local building rules, geographic limits and a severe lack of industrial zoning mean developers have nowhere to expand, making existing properties a hot commodity.
Those factors, coupled with high demand from local businesses who want to stay on the island rather than relocate to Bluffton or other nearby markets, makes locations like this one all the more attractive for long-term investments.
The new owners aren’t wasting any time getting started with changes. Stono Group plans to start work quickly on curb appeal and functional upgrades to modernize the buildings for future tenants.
“Hilton Head’s high barriers to new industrial development make existing functional warehouse space increasingly valuable to the local business community,” Hann added. “Our goal is to preserve and improve this type of product so businesses can continue operating close to their customers and workforce.”