Upstate SC on Track for Retail Growth
- Vacancy and asking rental rates remained steady throughout the first quarter of 2015.
- Residential development will drive future retail growth.
- Major redevelopment planned for Greenville News Site.
- Grocers continue to expand footprints. Lowes Foods plans to enter Greenville market.
- Redevelopments and new construction projects are on the rise throughout the market.
The Greenville/Spartanburg, South Carolina market continues to attract national and regional retailers, with many retailers choosing the Upstate as their first South Carolina location. Last year, the market welcomed Nordstrom Rack, Dave and Buster’s, Yard House, Cheddar’s, Firebirds and Bad Daddy’s Burger Bar, all of which are new to South Carolina. Significant residential development is creating a greater demand for grocers, outdoor and sports apparel stores and restaurants throughout the market.
Activity remains strong throughout the market despite a stable vacancy rate as a majority of the activity is in new and redeveloped centers. Redevelopments are planned for downtown Greenville and throughout suburban submarkets. The vacancy rate held steady and ended the first quarter of 2015 at 12.3%, slightly lower than the year-end 2014 vacancy rate of 12.4%. Asking rental rates are increasing over recent quarters and expected to increase further as new retail space delivers to the market. Asking rental rates for shop space in the market averaged $10.53 NNN at the end of the first quarter of 2015. Asking rates for junior anchor and anchor space averaged $7.96 NNN and $5.11 NNN, respectively, for the market.
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