Greenville is a tenant’s market

Key Takeaways

  • Large blocks of available space are prompting landlords to offer competitive leasing concessions.
  • Vacancy rates are expected to temporarily rise over the next few quarters as new construction is added to the market.

Landlords compete

Greenville is currently a tenant’s market. Due to large blocks of available office space, landlords must compete in order to gain or retain office tenants. A successful way to sway a tenant’s final location decision is by offering the best concessions that will incentivize a tenant to choose one space over another. The concessions should be catered to the tenant’s specific needs, offering a unique deal; this will not only assist the tenant with their move and/or decision, it may also make the tenant feel appreciated. A few concessions being offered in Greenville now are:

  • Free rent–the amount of free rent varies, but it may be up to a full year of free rent for large, long-term tenants.
  • Moving allowance–a moving allowance is funded by the landlord and the tenant may use it to offset any moving fees incurred due to the move. The average Greenville moving allowance ranges from $3.00 per square foot to $5.00 per square foot; however, in some special cases, usually with larger tenants, a landlord will offer the tenant a lump sum amount to be used during the relocation process.
  • FF&E allowance–a FF&E allowance is for funding new furniture or equipment for the tenant upon their move. It is usually given in a lump sum upon the signing of a new lease.
  • TI conversion–This type of concession allows unused tenant improvement allowance money to be converted in order to offset rent or to fund tenant’s furniture or equipment.

There are other types of concessions that may be offered by landlords, but currently, in the Greenville-Spartanburg-Anderson region, these are the most frequently-used concessions that are proving to be successful. Due to these concessions, vacancy is expected to eventually decline as tenants fill large blocks of space currently being offered with valuable lease incentives.

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