Strengthening Market Fuels Investment Opportunities
- Investment sale opportunities are strong with continued low interest rates and high occupancy and asking rental rates.
- Higher quality buildings are in higher demand causing a shift in tenants in many office buildings.
- Investment, development and leasing activity in Spartanburg is starting to take off.
Investment Opportunities Strengthen
Investment activity in Greenville is escalating as more institutional investors enter the market looking for steady and secure cash flow investments, due in part to the shift of investors from saturated and competitive primary markets to secondary and tertiary markets. High occupancy and asking rental rates are in turn creating a lower-risk environment with opportunity for higher returns for local and out-of-market investors.
An office building has not sold in Greenville in three years and there are now five office buildings and a six building office park on the market. Competition in primary markets has driven institutional investors to look for investment opportunities in tertiary markets like Greenville, improving sale opportunities for building owners.
The properties for sale include multiple buildings in the Brookfield and Patewood office parks in the I-385/I-85 submarket and the Liberty Square Towers, Wells Fargo Center and Bank of America Building in the Central Business District. These buildings are providing out-of-market and local investors with a strong selection of quality, Class A and B, investable product and are expected to sell quickly. The buildings all have high occupancy rates and asking rental rates. The market average asking rental rate is $23.94 per square foot per year (PSF/YR) for Class A buildings, presenting potential buyers with the opportunity for a strong cash flow.
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