Office Market Remains Stable in Q3.
The Greenville, South Carolina, office market remained stable during the third quarter of 2011. During this three month period, the office market absorbed 11,217 square feet of space. While activity was much more robust over this period than the net absorption suggests, leasing volume was largely concentrated to relocations and renewals of existing tenants, totaling more than 100,000 square feet of executed leases.
While the upstate economy has remained healthy thus far in 2011, the market has not experienced the anticipated post-recessionary expansion usually seen following an economic downturn. Although advanced manufacturing remains a staple of the local economy, new industries have been slow to locate in Greenville. This slow growth can largely be attributed to continued problems in the housing markets, and the inability for workers in other markets to sell their homes. Without flexibility in relocating executives it remains difficult for large operations to relocate or enter new markets.
The office market will remain stable through the end of 2011 and rental rates will remain largely unchanged. Any significant absorption will be dependent upon economic development activity and an influx of new companies to the market, which is not anticipated in the coming months.
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