Tight Market Conditions Continue into 2016
- The Greenville/Spartanburg industrial market started 2016 with significant construction activity and robust leasing velocity despite a steady vacancy rate through the first quarter of 2016.
- The area provides efficient logistics for companies, attracting capital investments from new and existing industry leaders.
- Industrial employment is up over recent years and is expected to increase further.
- Continued growth is forecasted for the remainder of 2016.
Healthy Interest in the Market Keeps the Vacancy Rate Low
2016 is off to a great start for the Greenville/Spartanburg industrial market following a significant year of leasing activity, capital investments and new construction. Construction activity has been gaining momentum and several projects were completed during the quarter, adding approximately 1.1 million square feet of space to the market. Half of that space was occupied upon delivery, contributing to a total net absorption of more than one million square feet for the quarter.
The total vacancy rate for combined industrial and flex space held steady at 7.7% during the first quarter solely due to some new space being delivered vacant. The flat vacancy rate is misleading as it does not accurately depict robust interest and activity in the market. The market is tightening over recent years and is down from 8.0% one year ago and 10.1% five years ago.
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