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2019 Q4 Industrial Greenville-Spartanburg Report

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2019 record-breaking industrial expansion adds 9.99M SF to the Greenville-Spartanburg market

Key Takeaways

The overall Greenville-Spartanburg industrial annual market vacancy rate only increased five basis points despite quarterly fluctuations, even with a record number of spec space deliveries.

Industrial annual net absorption reached approximately 9.60 million square feet in 2019.

During the calendar year 2019, the South Carolina Ports Authority reached a record-breaking container volume at the Port of Charleston and Inland Port in Greer.

2019 Industrial Annual Recap

The market posted a record-high net absorption of approximately 9.60 million square feet from the fourth quarter of 2018 through the fourth quarter of 2019. The overall Greenville-Spartanburg industrial market vacancy rate only increased five basis points from the fourth quarter of 2018 until year-end 2019 ending at 5.36%, despite a record number of spec space deliveries this year. With an increasing number of availabilities, location and specifications are increasingly driving the decision-making process in this market.

Throughout 2019, there were 33 buildings delivered to the market adding 9.99 million square feet of industrial inventory to the Greenville-Spartanburg market. This is due to increased speculative development in the overall market in addition to the completion of large build-to-suit projects throughout the region. Despite a record number of deliveries and leasing, rental rates have held stable throughout the year. With the increased amount of Class A space on the market, tenants and users are increasingly looking at Class A space as an alternative to Class B, demonstrating a flight to quality. 
There has been an uptick in investment sales and institutional-grade investors in this market. With recent major mergers within large owners of institutional real estate, investment and portfolio sales are up. This region is seeing cap rate compression due to these sales, indicating more aggressive capital in the market. 

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2019 Q4 Industrial Greenville-Spartanburg Report

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Related Experts

Garrett Scott

Managing Director

Spartanburg

With more than 30 years’ experience in brokerage and industrial development in the Upstate of South Carolina and beyond, I offer expert advice and a unique perspective which gives my clients the edge in a competitive market. 

My experience includes the planning, acquisition and implementation of more than 31 industrial parks in key manufacturing and distribution markets. In addition, I have been responsible for the development of more than 38 million square feet of industrial space including Class A manufacturing, automotive supply, warehouse, logistics fulfillment and e-commerce related facilities. 

More than 140 clients have relied on me to manage the start-up and implementation of their facilities. This background brings invaluable experience and understanding which allows me to meet the needs of tenants, developers and investors “from dock-door to C-suite”.

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John Montgomery

Managing Director

Spartanburg

I am a Managing Director of Colliers | South Carolina in the Spartanburg office, specializing in industrial buildings, industrial land and tenant representation. 

My experience includes master-planning and developing thousands of acres of real estate as well as attracting significant economic development projects worth billions of dollars and thousands of jobs including Toray Carbon Fibers, Ritrama, Kobelco, Keurig Dr. Pepper, Magna Seating and Techtronics Industries.

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Brockton Hall

Vice President

Greenville

Brockton Hall is a Vice President with Colliers International in the Greenville and Spartanburg offices. He is a member of the Upstate industrial team along with long-time real estate professionals, Garrett Scott and John Montgomery. This team specializes in the needs of industrial landlords and occupiers throughout the Southeast. 

Hall comes from a commercial construction background with years of experience in the commercial sector working on projects including K-12, office and institutional. He also has significant renovation and retrofitting experience. His construction background allows him to assist occupiers with their building specifications and advise them during the build-to-suit and new construction process. For developers and investors, he is well-equipped to advise on construction-related issues involved in tenant upfits, value-add projects and new development.

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Richard Barrett

Senior Brokerage Associate

Greenville

I specialize in flex office and industrial brokerage at Colliers International’s Greenville, SC office. I have many years of experience in the industrial business world and understand the demands that businesses experience regarding real estate. I strive to make the process as smooth as I can for my clients and offer them empathy and knowledge for getting the best space for their needs. I am inspired and motivated by the beauty of business growth. Seeing a company start from a small garage startup and grow into a powerful industry leader is exciting, and I am proud to be able to play a part in helping clients get started in a building of their own.

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Dillon Swayngim

Vice President

Spartanburg

I specialize in industrial and flex properties through landlord and tenant representation as well as industrial investment sales. 

I define success in my work as going above and beyond for clients and when the projects that I work on produce a substantial impact on local and regional economic development. My client roster has included large companies such as Amazon, institutional investors and small local businesses. Each of my clients are treated in the same manner as they expect responsiveness, professionalism and market expertise, and I take pride in being able to deliver each for them. Being able to identify operational inefficiencies and identify solutions for my clients is one of my biggest assets.

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