Greenville-Spartanburg Q4 Report

CBRE has released its Q4 2017 MarketView reports on the Greenville-Spartanburg industrial and office commercial real estate market.

Industrial & Logistics

After a record low vacancy rate in Q3, the delivery of speculative projects lifted Greenville-Spartanburg industrial vacancy by nine basis points to 6.8% in Q4, despite more than 2.4 million sq. ft. of absorption. Developers are being lured by a market that is experiencing accelerating growth and an increase in tenant diversity.

Highlights of the report are as follows:

• Vacancy rose by nine basis points due to speculative deliveries
• Tenant diversity is growing due to shift from manufacturing to manufacturing and logistics
• Large amounts of speculative development are occurring
• Speculative product is getting larger. Average size from 2002 to 2008 was 171,000 sq. ft. The average speculative building under construction is averaging more than 215,000 sq. ft.

For more information, download the Q4 2017 Greenville-Spartanburg Industrial MarketView here.

Office

The Greenville-Spartanburg office market has now experienced four consecutive quarters of underwhelming rates of absorption, or office market growth. Despite uncertainty in the engineering sector, tenants are confident in their long-term prospects, which raises the question as to exactly why things are slowing. Two primary issues appear to be driving a reduction in expansion: labor availability and the availability of space.

These are the highlights of the report:

• Absorption rate is slowing, but vacancy near record low
• Engineering sector brings uncertainty to the market
• Finding labor is a challenge for tenants
• Large spaces are difficult to find, new Camperdown project to help

For more information, download the Q4 2017 Greenville-Spartanburg Office MarketView here.