Office vacancy expected to rise with new construction delivery
- As new office construction is delivered to the Greenville-Spartanburg-Anderson office market, the vacancy rate will rise in the coming quarters before the new space is absorbed.
- Rental rates will stabilize at the beginning of 2019 until higher quality office buildings are delivered to the market.
2018 Market Recap
The Greenville-Anderson-Spartanburg market posted an annual net negative absorption of 287,990 square feet from the fourth quarter of 2017 to the fourth quarter of 2018, likely due to a large amount of new office product and a few large single tenants vacating their office space. The market vacancy rate rose from 10.16% during the fourth quarter of last year to 12.94% this quarter. Three office buildings totaling 68,440 square feet were delivered to the Greenville-Spartanburg-Anderson office market in 2018. The overall average weighted rental rate dropped from $21.40 per square foot during the fourth quarter of 2017 to $20.10 per square foot during the fourth quarter of 2018 and are expected to stabilize around the same rate in the coming quarters.
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