The Greenville S.C. office market made a strong rebound in the last half of 2006 with a record high absorption of 324,144 square feet; 14,777 square feet of this was in the CBD and 309,367 square feet of absorption ocurred in the suburbs. The Class A market remains the strongest with increases in average rental rates up around $2.00 per square foot in the CBD and $1.00 per square foot in the suburbs. Even the Class B market gained $.50 per square foot in the CBD, averaging $17.13 per square foot, and $1.40 per square foot in the suburbs, averaging $14.41 per square foot
On December 18th, Colliers International released its 2007 Real Estate Forecast, which provided an in-depth look at the nation’s commercial real estate market with predictions for the coming year in the industrial, retail and office subsets. According to our research, the U.S. commercial real estate sector will surprise on the upside in 2007, even amid potential stumbling blocks such as a weakening housing market and still high energy costs. These same factors are being felt in Upstate South Carolina.
One of the key trends in the Greenville area we see moving to the forefront in 2007 is the adoption of “green” and “sustainable” practices throughout the real estate industry. The vast majority of office development will be LEED certified (Leadership in Energy & Environmental Design) and tenants will continue to push for “green” space. These LEED certification practices are being utilized at the “state of the art” Clemson University ICAR campus, the 165,000 square feet Hubbell Lighting Headquarters, the 45,000 square feet Palmetto Bank Headquarters downtown and Liberty Properties’ buildings at Independence Pointe. Liberty Properties had one of the first pilot programs for LEED certification with the renovation of the One Independence Pointe building.
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