Colliers Report: Rental rate increases supported by strong fundamentals and growth
October 30, 2023
Commercial Real Estate Research & Forecast Report
Q3 2023 Greenville-Spartanburg Industrial
Market Highlights
Greenville-Spartanburg maintained strong fundamentals and interest despite higher vacancy and lower absorption. Housing developments, highway projects and record-high Greer Inland Port volume continued to drive growth in the Upstate. Construction decreased from this time last year to a more sustainable level, which will allow the market to further stabilize as business investment across the region continues.
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Key Takeaways
- Construction pipeline remained robust
- Rental rates continued to increase
- Vacancy increased as absorption was negative
- 5,281,240 square feet were delivered
Looking forward
These fundamentals coupled with landlord flexibility and a large number of new leases under 300,000 square feet allowed for increases in rental rates between 7% and 29% quarter over quarter. Flex/R&D increased 29% to $11.64 per square foot, manufacturing increased 18% to $3.84 per square foot and warehouse increased 7% to $4.86 per square foot.
About Colliers
Colliers | South Carolina is the largest full-service commercial real estate firm in South Carolina with 62 licensed real estate professionals covering the state with locations in Charleston, Columbia, Greenville and Spartanburg. Colliers is an Accredited Management Organization (AMO) through the Institute of Real Estate Management (IREM) and is the largest manager of commercial real estate properties in South Carolina with a portfolio of over 20 million square feet of office, industrial, retail and healthcare properties. Colliers’ staff hold the most professional designations of any firm in South Carolina. Colliers | South Carolina’s partner, LCK, provides project management services for new facilities and renovations across South Carolina.
Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 65 countries, our 18,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. With annual revenues of $4.5 billion and $98 billion of assets under management, Colliers maximizes the potential of property and real assets to accelerate the success of our clients, our investors and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn
