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