Industrial market development is full steam ahead
- Access to the global marketplace will positively affect market activity.
- The business climate in the Upstate is prime for new development.
The positive industrial momentum in the Upstate, created by BMW, General Electric, Michelin and Lockheed Martin, is driving more business to the region. World-class companies such as: Ritrama, which recently completed a 575,289-square-foot manufacturing facility on Moore Duncan Highway; Protrans, which completed a logistics warehouse consisting of 230,256 square feet; and PG Aerospace, who announced a new Pickens County facility, are moving to the Greenville-Spartanburg-Anderson region, increasing the area’s capital investments and creating new jobs.
More companies may be expected follow suit since the region has convenient access to the global marketplace via the Greer Inland Port (a 25-minute drive time) and the Port of Charleston (a 3-hour drive time). The Port of Charleston annual cargo shipment totals have set a record during 2017, moving more cargo boxes last year through the port than ever before in its 75 year history. The inland port in Greer, SC is also reporting a record number of shipments, a 20.4% increase over the shipments during 2016. This positive environment for world-class companies to move to the area and add employment will enhance the industrial real estate market by lowering the vacancy and raising the rental rates as the market tightens.
2017 Market Recap
The Greenville-Spartanburg-Anderson market posted a positive annual absorption of 3,613,218 square feet. The rental rate continues to rise; this time last year, the triple net market average rental rate was $3.44 per square foot, and this quarter, the rental rate has risen to $3.83 per square foot. There are 5,343,417 square feet of industrial buildings currently under construction and 2,034,100 square feet proposed. This quarter, another 1,413,495 square feet of new construction was delivered to the market; therefore, the vacancy was pushed up to 7.05%, a bit higher than this time last year.
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