M A R K E T B E AT

GREENVILLE, SC
Industrial Q4 2020

YoY 12-Mo. ECONOMY: Expansion Continues as Employment Recovers

Chg Forecast Overall, the fourth quarter in Greenville/Spartanburg was relatively healthy as the local economy added jobs — under 10,000, but
still positive compared to Q3 of 2020. At the end of 2019, total employment in the upstate was about 588,100. Heading into
7.5% December 2020, the Upstate employment stood at 570,350. Trending in the right direction, however, still down from pre-COVID-19
Vacancy Rate highs. Locally, office and industrial sales prices have remained stable, and rents have flattened, though more free rent is being
offered than in previous years. We expect 2021 to show continued growth in the local real estate sector.
-1.53M
Net Absorption, SF SUPPLY and DEMAND: Signed, Sealed, Delivered
Speculative building completions in Q4 caused absorption numbers to skew in a negative direction, totaling -1.5 million square feet
$4.06 (msf). However, several msf have been leased and the space will be considered “absorbed” as the tenants take occupancy.
Asking Rent, PSF Despite this dip, it is worth noting several large lease transactions and build-to-suit deals provided more mometume for the
industrial market to close out the year. These include DHL leasing 131,000 square fet (sf) at Carolina Commerce Center, MingHua
Overall, Net Asking Rent leasing 134,000 sf at Woods Chapel Crossing, Custom Goods leasing 585,000 sf on Robin Lake Road, and TTI Floorcare leasing
550,000 sf on Robinson Road and expanding it to 1.4 msf. Despite accelerated leasing activity, the overall market vacancy rate
increased to 7.5%, up from 7.0% in Q3, due to an increase in supply. Current product under construction or delivered that is vacant
ECONOMIC INDICATORS
hovers just under 4.0 msf with nearly double that square footage in tenants circling the market and touring space. We anticipate
Q4 2020
demand to continue to increase and supply to gradually decrease.
YoY 12-Mo.
Chg Forecast
PRICING: Staying Competitive… For Now
426.4K Rental rates increased slightly from Q3, averaging $4.06 per square foot (psf). We do not expect them to climb much in 2021.
Greenville
However, as the pipeline for speculative construction shrinks, it will likely become more of a landlord’s market as the year
Employment
progresses. We are entering the year with several million square feet of tenants in the market that will likely have to compete for the
remaining speculative space, further adding to potential rate increases. Construction pricing is also up and may be reflected in
3.8% asking rates for buildings delivering after Q2.
Greenville
Unemployment Rate

6.7% SPACE DEMAND / DELIVERIES OVERALL VACANCY & ASKING RENT

U.S.
Unemployment Rate 10 $5 8%

$4
Source: BLS
5 $3
4%
$2
0
$1

$0 0%
-5 2016 2017 2018 2019 2020
2016 2017 2018 2019 YTD 2020

Net Absorption, SF Construction Completions, SF Asking Rent, $ PSF Vacancy Rate

M A R K E T B E AT

GREENVILLE, SC
Industrial Q4 2020
MARKET STATISTICS
CURRENT QTR OVERALL OVERALL OVERALL
INVENTORY OVERALL VACANT OVERALL YTD OVERALL NET CONSTR
SUBMARKET OVERALL NET UNDER CNSTR (SF) WEIGHTED AVG WEIGHTED AVG WEIGHTED AVG
(SF) (SF) VACANCY RATE ABSORPTION (SF) COMPLETIONS (SF)
ABSORPTION (SF) NET RENT (MF) NET RENT (OS) NET RENT (W/D)
Anderson County 25,545,775 606,219 2.4% -5,700 150,641 775,973 0 $4.21 $5.11 $3.23
Cherokee County 9,217,954 728,400 7.9% 0 -649,800 0 0 N/A N/A $3.50
Greer 25,972,638 5,031,663 19.4% -538,628 -733,541 137,340 0 $7.50 $5.28 $4.91
Hwy 290 10,291,307 1,377,584 13.4% -362,385 -497,014 0 0 $3.92 $6.06 $3.72
Laurens County 13,481,382 427,982 3.2% -28,665 45,127 150,660 0 $2.00 N/A $3.37
N Greenville 23,740,822 782,810 3.3% -49,700 13,867 0 0 $4.89 $6.82 $4.05
E Greenville 11,515,053 1,004,716 8.7% -90,856 -106,000 0 0 $6.23 $7.92 $4.27
W Greenville 3,617,174 178,777 4.9% -14,156 -101,687 0 0 N/A $11.98 $7.24
S Greenville 36,642,665 2,345,648 6.4% -55,820 51,724 1,059,638 0 $3.86 $6.45 $3.93
N Spartanburg 43,939,809 3,211,570 7.3% -14,131 -318,411 12,000 0 $3.87 $5.09 $4.00
S Spartanburg 16,939,407 482,657 2.8% -12,000 -48,250 0 0 $2.79 N/A $3.00
Pickens County 6,938,609 1,006,102 14.5% -360,800 -503,392 0 0 $3.00 N/A N/A
MARKET TOTALS 227,842,595 17,184,128 7.5% -1,532,841 -2,696,736 2,135,611 0 $3.84 $6.05 $3.98

*Rental rates reflect weighted net asking $psf/year FX = Flex MF = Manufacturing OS = Office Service/Flex W/D = Warehouse/Distribution

KEY LEASE TRANSACTIONS Q4 2020

PROPERTY SUBMARKET TENANT RSF TYPE
BRIAN YOUNG, CCIM SIOR
1345 Victor Hill Road Greer (Route 101 Corridor) Custom Goods 585,000 New Lease Senior Vice President, Managing Broker
Cubes at Inland 85, Building C Greer (Route 101 Corridor) TTI Floorcare 504,000 New Lease +1 864 370 8087 brian.young@thalhimer.com
7870 Reiville Road Greer (Route 101 Corridor) Benore Logistics 321,692 New Lease

1121 Woods Chapel Road Greer (Route 101 Corridor) MingHua USA 134,000 New Lease

1601 Poplar Drive Ext, Building 2 Greer (Route 101 Corridor) DHL 131,615 New Lease

1300 Hayne Street
KEY SALES TRANSACTIONS Q4 2020
PROPERTY
911 Berry Shoals
N Spartanburg (North Side/Route 9 Corridor)
SUBMARKET
Greer (Route 101 Corridor) Dairy Farmers of America / Blue Bell Creameries
Upward Sports 95,583 New Lease
A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION
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and owners. Cushman & Wakefield is among the largest real estate
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± 13,000 $800K / $58.08 and 60 countries. In 2019, the firm had revenue of $8.8 billion across
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contained within this report is gathered from multiple sources believed
to be reliable. The information may contain errors or omissions and is
presented without any warranty or representations as to its accuracy.

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