2007 Q4 Office Greenville Report

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Market Summary

The Greenville, South Carolina, office market experienced a record year during 2007, with total absorption for the year exceeding 500,000 square feet.  The majority of the growth in 2007 occurred in the second half of the year as the market finished out 2007 with an occupancy rate of 87.08%, up from 80.43% at mid-year 2007.  

The average asking rent across the market remained flat from mid-year 2007 to year-end 2007, but average asking rental rates for Class A space decreased from $18.27 per square foot to $18.00 over this six-month period.  First generation Class A space, which commands a higher rental rate, was being absorbed at a much quicker pace than space on the lower end of the spectrum.  As such, average asking rental rates for available Class A space declined across the market.

Central Business District

Greenville’s Central Business District experienced a slowdown in 2007, posting a six-month absorption of negative 33,834 square feet at year-end 2007.  Greenville has, over the past several years, experienced a resurgence of activity in its downtown area, but attention shifted to the suburbs over the twelve months prior to year-end 2007.  Negative absorption resulted in a decrease in occupancy from 87.53% at mid-year 2007 to 86.56% at year-end 2007.  

Newer mixed-use projects experienced the most activity over 2007, as the convenience of having shopping, dining and living spaces within walking distance provided an attractive amenity to office users.  Older buildings within the CBD were not able to replace tenants lost through attrition as quickly as they once were prior to the development of modern mixed-use facilities.

The development of new buildings in the Central Business District has been delayed due to the lack of available parking.  Pending developments that have on-site parking incorporated into the project appear to be moving forward.  A 70,000 square foot mixed-use development planned for the intersection of Broad and South Main Streets is pre-leasing and expected to break ground in the first quarter of 2008.

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Greenville office report

2007 Q4 Office Greenville Report

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