Strong Development Expanding the Market
- The primary retail corridors Woodruff Road, Haywood Road, West Spartanburg and Clemson Boulevard are strengthening as the vacancy rates fall and average asking rental rates continue to escalate.
- Grocery chains continue to expand within the Greenville/ Spartanburg area. Harris Teeter, Lowes Food, Aldi, The Fresh Market, Walmart Neighborhood Market, and Lidl have all recently opened or are preparing to open stores in the Greenville retail market.
- Restaurants continue to expand in the market with six openings this quarter and many new announcements.
Robust Activity Leading to High Occupancy
The second quarter of 2016 was an active quarter for retailers in the Greenville/Spartanburg market. Developers are taking notice of the strong interest in the area with several mixed-use developments underway in corridors surrounding downtown Greenville, some close to completion. Once completed, these developments will expand the reach of downtown Greenville, encouraging locals and the growing number of tourists to walk off Main Street.
The vacancy rate at the end of the quarter was 9.7%, a drop from 11.0% at the end of the first quarter, and 12.8% a year ago. The average asking rental rate for shop space in the market is $12.00 NNN per square foot per year (PSF/YR), slightly down from $12.51 NNN PSF/YR at the end of the first quarter of 2016. The average asking rental rate for the market is lower, although is not reflective of the overall health of the market. High occupancy and fewer options for desirable space in some corridors are creating lower average asking rental rates despite the rise in asking rental rates at anchored shopping centers in the corridors of Woodruff, Haywood, West Spartanburg and Clemson Boulevard in Anderson.
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