Interest from out-of-town users will increase absorption
- Rental rates are increasing due to available high-quality office space delivering to the market; this will also cause the vacancy rate to rise.
- Interest from out-of-town prospects is intensifying.
- Owners are preparing office availabilities for a quick turnaround by creating open-air, lease-ready suites.
Increasing interest from out-of-town
There are a multitude of reasons businesses from regions outside of the Greenville-Spartanburg-Anderson area are currently expanding or relocating to the market. According to the most recently posted U.S. Census Bureau data, the Greenville population increased 12.33% from July 2010 through July 2017. This rise in population can be attributed to a robust economy, low unemployment rate, a high livability standard and a thriving business climate. The Greenville-Spartanburg-Anderson unemployment rate is 2.9%, lower than the national average, while the Greenville-Spartanburg-Anderson cost of living is in line with the national U.S. average. In addition to the general living conditions of the region drawing interest from out-of-town users, the market can accommodate a variety of tenant needs and wants. Due to construction deliveries and an uptick in vacancy within the suburban markets, a tenant is able to pick and choose the type and/or size of suites available to them. However, while there are many choices currently available, they will be leased quickly due to landlords proactively upgrading suites to be open-air and tenant-ready. Many office availabilities are already an “office spec” type of suite; therefore, tenants are able to move in within less than six months, even if specific upgrades are requested.
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