Investor Activity Spurs New Opportunities
- Activity from value add investors will push the expansion of the I-385/I-85 submarket.
- Experiential workplaces are a popular trend in the national office market and are growing in the Greenville market.
Suburban Expansion Still on Horizon
Aligned along Interstates 85 and 385, Greenville’s suburban office market is attractive to employers for its regional connectivity, accessibility and free ample parking. The submarket has an aging inventory that has attracted value add investors as market fundamentals have improved. Upgrades and renovations to existing buildings will continue to raise rental and occupancy rates in the submarket, bringing them to levels sustainable for new development.
The last office building was developed in the I-385 corridor in 2009. Prior to that, only three buildings of 30,000 square feet or larger had delivered since 2005. There are currently no new buildings under construction or planned in any of the suburban submarkets, but continued activity from value add investors suggests that new development could come in the future.
Due to the rising opportunities for value add investors, the last five years have seen two waves of value add investment sales in the Brookfield, Patewood, Park Central and Park East office parks. The first wave was value add investors that made small upgrades to common areas, such as new carpet, paint and fixtures, bringing the occupancy rate between 80 and 85%. The second wave of investors is active in the market now, purchasing buildings that are approximately 80-85% occupied. These investors are improving common areas to increase the occupancy to 92%, with the intent of selling the properties.
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