Elias Deeb, CEO, Navy Yard Industrial Campus

In an interview with Invest:, Elias Deeb, CEO of Navy Yard Industrial Campus, discussed tenant turnover, maritime and creative manufacturing demand, collaboration, Charleston’s competitive advantages, and the next phase of growth. “There is a tangible opportunity for a truly 21st-century mixed-use location where people live and work,” Deeb said.

How has the Navy Yard Industrial Campus evolved over the past 18 to 24 months?

Our core business is leasing industrial real estate on about 100 acres of a former Navy base and historic shipyard dating to the early 1900s. We have approximately two million square feet of buildings, piers, wharves, and industrial space, and our occupancy rate stays high. Tenants often remain for many years once they settle on Campus.

Over the past 18 to 24 months, however, three longtime companies moved into larger spaces. I call those moves graduations. Some companies started with us more than a decade ago with two or three employees and left with 350. Urban Electric relocated and freed about 70,000 square feet, the Bourne Group moved out, and Smithey Ironware recently decided to graduate into a larger space. Together, those changes opened a few hundred thousand square feet.

What types of companies filled the space created by those graduations?

We saw significant demand from design-forward companies that remain in manufacturing, maritime, and logistics but operate on the creative side. Examples include a studio that designs and builds high-end furniture, an ironwork shop that pairs traditional blacksmithing with contemporary design, and a custom fabrication company that produces touring theatrical sets and event installations.

I tell people, if you make or fix something, you’re a great fit. These companies are heavy in design and innovation, but at their core, they are manufacturers. We made significant capital investments to accommodate them, and we are full again.

Which sectors are driving demand, and what makes the campus attractive to them?

Our core sector remains maritime. It is driven largely by ship repair and the ancillary businesses that support a ship repair operation. Detyens Shipyards is our largest tenant by footprint and serves as our anchor tenant. Commercial shipping and the Department of Defense are driving that business to new heights. There is a strong federal focus on repairing and maintaining Navy vessels, as well as developing autonomous ships, especially underwater, unmanned vehicles.

On the other end of the spectrum, many creative entrepreneurs started their operations in downtown Charleston. Cabinetmakers, ironworkers, trim carpenters, interior designers, and furniture makers were part of a thriving creative and entrepreneurial fabric. However, Downtown economics changed, and those industries were pushed north and west. We have benefited from that shift.

Our historic buildings are more than 100 years old and can inspire the right tenant. A company must appreciate good design, architecture, and the character of an old building. We do not have 21st-century lab space, so that is not a good fit. If riveted steel, trusses, and exposed masonry inspire you, however, this is an attractive place. Creative fabricators and companies that make commercial art can get good value here. Their presence creates diversity in the work being done while keeping the campus centered on fabrication and manufacturing.

How does collaboration happen among roughly 40 companies on the campus?

The Campus is dense. We have around 40 companies and about two million square feet on 100 acres, so there is not much elbow room. It’s a real community. You can’t help but run into your neighbors, and that’s where the best collaborations start. 

Our company works hard to be a conduit for communication between tenants. They have direct relationships, but when someone has a need, they know they can call me or a member of my team. The facility never closes. On a holiday, during a hurricane, or at any hour of the day, somebody is working here.

Need extra lay-down space? We can point you to a neighbor who has some available. Forklift breaks down on a Saturday morning with a job due out the door? With about 100 forklifts on Campus, a quick phone call usually solves it. Most of this happens organically, through word of mouth, chance encounters, and tenants calling us when they need a hand.

What competitive advantages does Charleston offer manufacturers and other businesses?

Before the Navy base closed, the U.S. Navy was Charleston’s primary employer. When the base closed in the mid-1990s, there was economic panic about replacing those jobs and employing thousands of technically competent people. It turned out to be a blessing in disguise. That moment marked the birth of the state and region’s manufacturing boom.

Visionary leaders focused on redeveloping the former base. I am proud that our company was a major part of the shift from public employment to private-sector and manufacturing employment. South Carolina and the Charleston region have supported manufacturing, logistics, and maritime industries for a long time, which is a major competitive advantage.

Our quality of life is second to none, and it is easy to attract talent to South Carolina, especially Charleston. The city’s historic nature also attracts an entrepreneurial, creative, and inventive mindset. We are beginning to see the benefit as the economy becomes more knowledge-based and technology-focused.

What capital investments will shape the campus over the next two to four years?

We grow organically into spaces that have not been developed. Although the company was founded in the mid-to-late 1990s, we still have more than half a million square feet yet to be occupied because we are careful about how we develop. Over the next two, three, or four years, we will slowly and thoughtfully redevelop that existing space.

We also have about eight acres on the northern portion of the property and will begin transitioning into new construction. Since the company was founded, we have not built a new building. That area also has undeveloped, heavy-industrial waterfront. Our capital focus is organic growth into the remaining undeveloped buildings, followed by new construction at the north end of the facility.

How do you want the campus to coexist with nearby mixed-use development?

We are conscious of what is happening around our 100 acres. There is intense planning and interest in mixed-use development, which is not what we do. We remain focused on manufacturing, maritime, and logistics, while other groups develop retail, residential, and other uses nearby.

Over the next five to 10 years, we want to be a good neighbor and encourage open dialogue within our growing community. Mixing uses this closely can create friction, but we are prepared to navigate those conversations. 

Picture someone who works on Campus walking across the street for lunch, then heading home to a nearby apartment, with everyday services close at hand. If we get it right, this could be an area in Charleston where you can live without owning a car, or where a car is at least optional. There’s a real opportunity here to create a true 21st-century community where people live and work.