New construction delivery is rapid, but absorption is faster
- Due to high demand, the Greenville-Spartanburg-Anderson market is delivering new construction at a rapid pace and absorbing it even faster.
- The average weighted rent continues to rise quarter-over-quarter.
2018 Market Recap
The Greenville-Spartanburg-Anderson industrial market activity increased throughout 2018. The market absorbed 6.30 million square feet of industrial space this year, even though 3.46 million square feet of industrial properties have delivered to the Greenville-Spartanburg-Anderson market since the fourth quarter of 2017. In addition, the vacancy rate dropped from 6.64% during the fourth quarter of 2017 to 5.16% during the fourth quarter of 2018. In addition to incredible absorption, construction delivery and a declining vacancy rate, the overall average weighted rental rate rose this year from $3.30 per square foot at the end of 2017 up to $3.73 per square foot during the fourth quarter of 2018.
The Greenville-Spartanburg-Anderson industrial market is comprised of 3,005 buildings totaling approximately 199.15 million square feet. During the fourth quarter of 2018, three buildings adding 116,828 square feet of new industrial space to the market were completed. In addition, there are currently nine proposed warehouses and two proposed flex/R&D buildings, which will add 2,156,040 square feet to the region if completed. During the fourth quarter of 2018, the industrial market absorbed 736,594 square feet, of which 565,244 square feet was absorbed in the Wingo submarket. In addition, the overall market vacancy rate dropped from 5.49% during the third quarter of 2018 to 5.16% during the fourth quarter of 2018.
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