Colliers Report: Industrial market in rebalancing phase of upwards trajectoryFebruary 15, 2023
Commercial Real Estate Research & Forecast Report
Q4 2022 Greenville-Spartanburg Industrial
By Ron Anderson | Vice President of Research & Information Technology
Unprecedented demand forced the Greenville-Spartanburg industrial market into hyperactivity over the last two years with developers racing to deliver buildings fast enough to keep pace with demand. The market began a rebalancing cycle this quarter that brought construction back into equilibrium. During the fourth quarter, 951,147 square feet delivered with a rare net negative absorption of 162,961 square feet primarily due to multiple fourth quarter tenant occupancy dates being pushed to 2023.
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- Greenville-Spartanburg industrial market activity is equalizing to pre-pandemic levels
- There are ±4 million square feet of pre-leased space still currently under construction
- Rental rates are continuing to increase quarter-over-quarter
Approximately 4 million square feet of pre-leased space is currently under construction and expected to deliver during the first quarter of 2023 and lead to high positive absorption. Record low Class B and C vacancy and availability throughout the market is also currently pushing absorption down. In 2023, Greenville-Spartanburg’s industrial market is expected to continue its overall upward trajectory with increasing rental rates, record-low vacancy rates and ongoing tenant demand.
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