The real estate market for manufacturing and industrial space in Southeastern North Carolina (New Hanover, Pender, Onslow, and Brunswick counties) is highly strategic and competitive. Driven by the Port of Wilmington, excellent highway connectivity (I-40 and I-140), and a favorable tax environment, this sector is a major focus for investors seeking strong cap rates and businesses looking for expansion opportunities.
Market Dynamics: Industrial vs. Residential Growth
While residential growth dominates headlines, industrial real estate provides the economic foundation. Manufacturing space is distinct from standard warehousing: it requires specialized infrastructure like reinforced floors, high-capacity power systems, and specialized utility connectivity.1
Valuation & Pricing: The average price per square foot for industrial properties in the Wilmington area hovers around $308, though this varies significantly based on size, specialization (e.g., heavy manufacturing vs. light assembly), and location.2
Investment Appeal (Cap Rate): The Wilmington area's industrial properties typically command an average Capitalization Rate (Cap Rate) of around 5.91%, indicating strong investor demand and stable rental income potential in a growing logistics hub.3
Key Industrial Corridors
The most active manufacturing and industrial markets are concentrated around major logistics points:
New Hanover County (Wilmington/Castle Hayne): Driven by proximity to the Port of Wilmington and major industrial anchors (e.g., GE Aviation, Corning), available space is often smaller but commands a higher premium. Areas along US-421 and near the I-140 bypass are critical.
Brunswick County (Navassa): This area, located across the Cape Fear River, is attracting major investment due to the availability of large tracts of land, deep-water access, and CSX Rail access. It is often a designated Economic Opportunity Zone, making it highly appealing to large-scale manufacturers and material handling facilities.
Land and Location: Finding Space to Build
As residential sprawl consumes developable land, businesses looking for large acreage for custom-built facilities must look strategically outside the immediate Wilmington core.
| County | Strategic Advantage for Manufacturing | Example Locations |
|---|---|---|
| New Hanover | Port & Air Access: Ideal for specialized, high-value manufacturing needing quick access to the Port of Wilmington and ILM International Airport. | Castle Hayne, U.S. 421 Corridor (The Yard development). |
| Brunswick | Multimodal & Large Tracts: Offers deep-water frontage, rail spurs, and ample land for large facilities. Highly targeted by the region's economic development efforts. | Navassa, areas along the Cape Fear River. |
| Pender | I-40 Access & Lower Cost: Best suited for distribution, assembly, and light manufacturing, offering lower land costs and excellent logistics via I-40. | Burgaw Industrial Park, Holly Ridge (near the Onslow border). |
| Onslow | Military & Stable Workforce: Caters to industries that support the military (e.g., defense contractors) and those seeking more affordable land with reliable access to a large, skilled workforce. | Jacksonville, Holly Ridge. |
Financial Incentives for Manufacturers 💡
North Carolina and local counties offer compelling incentives to attract manufacturing investment, making the region financially attractive for expansion:4
- Sales and Use Tax Exemptions: The state exempts sales and use tax on mill machinery and equipment used for manufacturing, as well as on electricity, fuel, and raw materials consumed in the process.5
- Job Development Investment Grant (JDIG): This performance-based state program offers cash grants to companies based on a percentage of the state withholding taxes generated by new, high-paying jobs.6
- Local Grants: New Hanover and the surrounding counties often offer cash grants (in lieu of property tax abatements, which are banned in NC) based on the incremental tax revenue a new project generates, rewarding companies for job creation and capital investment.7
Aspyre Realty Group: Your Guide to the Evolving Market
Navigating the industrial real estate sector requires a deep understanding of zoning (especially when dealing with larger, multi-jurisdictional parcels), utility capacity, and economic incentives.
At Aspyre Realty Group, we track every rezoning application, monitor new home inventory from national and local builders, and analyze infrastructure plans. We're experts in helping you navigate the real estate market because of this knowledge, and specialize in identifying and structuring complex deals for manufacturing and industrial development across the entire Southeastern North Carolina region.
Check out this article next
