Speculative Developments are Gaining Momentum in the Upstate
Companies continued to announce plans to invest and expand throughout the Greenville/Spartanburg industrial market, which ended the third quarter of 2014 with an overall vacancy rate of 8.1%, holding steady over the previous quarter. The Greenville/Spartanburg market is comprised of Anderson, Cherokee, Greenville, Laurens, Pickens and Spartanburg Counties. Anderson, Greenville and Spartanburg Counties had total vacancy rates of 4.6%, 7.5% and 8.7%, respectively, for the combined industrial and flex market. Overall asking rental rates were up slightly to $3.06 from $3.02 at mid-year 2014.
Leasing and sales velocity was limited as quality industrial space remains in short supply throughout the market. The private and public sectors are answering the demand for new industrial space and developing speculative industrial buildings, most of which are pre-leasing successfully. Speculative developments will generate future growth and benefit the overall economy as companies invest in the market and generate jobs.
The overall vacancy rate for industrial space in the Greenville/Spartanburg market was 8.0%, ending the third quarter with limited activity and a steady vacancy rate from mid-year 2014. The Anderson, Greenville and Spartanburg industrial vacancy rates were 4.5%, 7.3% and 8.5%, respectively. Asking rental rates averaged to $2.90 NNN for the market, slightly higher than the mid-year 2014 average of $2.85 NNN. Greenville County has the highest average asking rental rate in the market at $3.13 NNN. Lease transactions were limited throughout the third quarter as desirable Class A industrial space remains difficult to find in the market.
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