Florence Commercial Real Estate Market
Florence's commercial real estate market is built on two pillars: its role as the Pee Dee region's primary economic hub — the only city of significant scale serving a multi-county area — and its logistics positioning at the I-95/I-20 interchange. These two advantages create demand that most similarly sized cities cannot replicate. Regional retailers, healthcare systems, and professional service firms maintain Florence locations because there is no alternative hub within 60+ miles in most directions. Logistics tenants choose Florence because the interstate access connects to major Southeast markets in every direction.
McLeod Health operates one of the largest hospital systems in eastern South Carolina, employing thousands and generating medical office demand along Second Loop Road, West Palmetto Street, and the hospital's expanding campus. Francis Marion University and Florence-Darlington Technical College add over 7,000 students and institutional spending. The retail market along David McLeod Boulevard and the I-95 exit commercial areas serves both Florence residents and the broader Pee Dee population, with national retailers maintaining Florence as their only location serving the entire region.
Florence's cap rates are among the highest along the I-95 corridor in the Carolinas, offering investors strong income yields backed by institutional and regional hub demand. The buyer pool includes logistics companies seeking owner-occupied distribution facilities, income-focused investors building portfolios in I-95 corridor markets, and healthcare-focused investors attracted by McLeod Health's stability. For sellers, properly positioning Florence properties as I-95 logistics assets or Pee Dee regional hub investments — rather than as small-city properties — is essential to accessing the right buyer pool and achieving competitive pricing.
Top Property Types in Florence
Retail & Regional
The I-95/I-20 interchange gives Florence industrial properties a logistics advantage unmatched in the Pee Dee region. Distribution centers, freight consolidation facilities, and manufacturing operations serving Charlotte, Charleston, Myrtle Beach, and the broader I-95 corridor compete for warehouse space along East Palmetto Street, TV Road, and the Florence County Industrial Park. Florence's CSX rail connectivity adds intermodal capability. Properties with modern clear heights, multiple dock positions, and direct interstate access generate the strongest buyer interest from both owner-occupants and logistics investors.
Industrial & Logistics
McLeod Health's hospital campus and the associated physician network generate medical office demand that makes healthcare Florence's most stable commercial asset class. Second Loop Road, West Palmetto Street, and the medical district near the hospital house physician practices, specialty clinics, outpatient surgery, and rehabilitation facilities serving the entire Pee Dee region. Multi-tenant medical buildings with diversified specialty mixes and long-term leases achieve the tightest cap rates in the Florence market. McLeod's ongoing campus investment signals long-term healthcare demand growth.
Medical & Office
Florence's role as the Pee Dee's only significant retail center creates a trade area that extends 60+ miles in most directions, drawing shoppers from Marion, Dillon, Darlington, and surrounding counties. David McLeod Boulevard, the I-95 exit commercial areas, and the Magnolia Mall vicinity concentrate national and regional retail tenants. Grocery-anchored centers, big-box retail, and quick-service restaurants serving both the local population and I-95 travelers provide the most liquid retail investments in the Pee Dee region.
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Cap rates reflect the smaller market but stable healthcare demand.
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