Limited Activity in the First Half of 2014

Market Overview

Leasing velocity was slow through the first half of 2014 for the Greenville, South Carolina office market which ended the second quarter of 2014 with an overall vacancy rate of 18.51%, down slightly from the first quarter vacancy rate of 18.61%.  

The market’s class A space is in greater demand than class B and C space resulting in a vacancy rate of 14.44% for class A space, much lower than class B and C vacancy rates of 23.36% and 23.76%, respectively.  Asking rental rates averaged $17.78 for the market with class A and B space average, $20.35 and $15.68, respectively.

Central Business District Submarket

In recent quarters, the main focus in Greenville was on the Central Business District (CBD) which along with new office tenants welcomed new multifamily developments and retailers.  Several residential developments are in the works including the Beach Company’s South Ridge development, which is currently under construction.  

The CBD ended the second quarter with a vacancy rate of 18.45%.  Class A and B office buildings make up most of the CBD’s inventory and had vacancy rates of 18.61% and 18.66%, respectively, at the end of the second quarter.  Asking rental rates averaged $20.43 for the CBD, up from $19.90 at the end of the first quarter, with class A and B asking rental rates averaging $21.26 and $18.60, respectively.

Ameris Bank leased 3,500 square feet at the Landmark Building, located at 301 North Main Street.  The new branch will be focused on commercial and mortgage banking.  The move follows a trend seen in other cities in which banks are locating on busy, highly occupied downtown streets to gain exposure and accessibility to customers.

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