Consistent leasing activity is expected in 2018
- Large blocks of quality office space are available, so leasing activity in 2018 will be strong.
- The suburban market saw a strong quarter.
2017 Market Recap
The market average full service rental rate increased slightly from $19.76 per square foot during the fourth quarter of 2016 to $19.87 this quarter. The overall market absorption year-over-year is 27,793 square feet. The Central Business District had a negative absorption of -159,854 square feet, while the suburban market had a strong year absorbing 187,647 square feet. Value-add investors boosted the expansion of the I-385/I-85 market by upgrading the amenities and common areas to increase the rents and property values, adding to the vibrant suburban leasing activity throughout this year. Large blocks of quality sublease space are available throughout the market, giving tenants many options to fit their leasing requirements.
The Greenville-Spartanburg-Anderson overall market vacancy rate was 17.15% at the end of the fourth quarter, down from 17.7% at the end of the third quarter of this year. This decrease was attributable to the 33,212 square feet absorbed within the suburban markets; 53,400 square feet of the suburban space absorbed was within Class A buildings. There are currently large blocks of both sublease and directly vacant office space available within all sectors of the market, which will afford tenants several market options to either negotiate incentives to renew their current leases or attain a new lease with added amenities.
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