Office Market Updates
The Greenville, South Carolina, office market increased in size by 1.9%, to 7,037,574 square feet, over the first two quarters of 2007 due to new building construction. New projects include the 75,000 square feet Collaboration I Building at the Clemson University International Center for Automotive Research (CU-ICAR), Independence Pointe – Building 7 by Liberty Properties Trust, and Highpoint at Pelham near I-85. As of mid-year 2007, the market rate for new Class A construction was approaching $22.00 - $23.00 per square foot, which reflects the cost of new construction as well as increased demand. The total market occupancy rate decreased from 86.43 % at year-end 2006 to 80.43% at mid-year 2007.
Newly constructed Class A inventory is quickly becoming absorbed by new tenants moving up to better space, thus leaving older Class B buildings with more vacancy. The total market absorbed 187,065 square feet in the six months prior to mid-year 2007, which continued to show phenomenal growth.
Our methodology is to track only multi-tenant buildings that are 20,000 square feet or greater. Thus, our totals reflect adjustments for the removal of some fully occupied, single-tenant buildings that did not qualify, representing a total decrease in market size of 170,582 square feet.
In February, an official groundbreaking took place for The Pinnacle on Main, the mixed-use tower planned for 350 N. Main Street, priced at $22 million. The 95,000 square foot tower includes shopping, residences and small office spaces. It will also have a 180-space parking garage, health club and an indoor pool.
A Greenville developer has plans to purchase from the City of Greenville a 1.6 acre site located at the corner of S. Main and Broad Streets. The developer proposes to build a Courtyard by Marriott hotel with 140 rooms directly across from the Peace Center for the Performing Arts. There is also proposed a six-story office complex with restaurant and retail space on the ground floor and an open area next to City Hall with a 12-foot water wall fountain. A private 250-space parking garage would be built along South Laurens Street behind the hotel. The developer is hoping to break ground by the end of this year.
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