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2020 Q1 Office Greenville-Spartanburg Report

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Positive office momentum slows as COVID-19 looms

Key Takeaways

  • During the first quarter of 2020, the Greenville-Spartanburg market saw vacancy decrease, rental rates increase, and positive absorption. However, COVID-19 is now disrupting the market activity and while most deals seem to be progressing, a major slowdown is likely as new deal flow is currently limited. Time will tell how the virus outbreak impacts the long-term market activity.
  • Office investment sales were strong during the first quarter of 2020; however, due to uncertainty caused by the Coronavirus the absence of office investment in the coming quarters will significantly impact the office market for the rest of the year.

Favorable conditions for investors 
Commercial real estate investments are made with the goal of earning a high rate of return on an investment property. The return on investment is expected to come through rental income, the future resale of the property, or both. In addition, capitalization rates (“cap rates”) are a decisive purchasing factor, because it is an indicator of the rate of return projected to be generated on the investment. Conditions within the Greenville-Spartanburg market are favorable for investors to capitalize on properties that have an opportunity make capital improvements, to lease-up, drive rental rates up, etc. to increase the net operating income. Cap rates within the Greenville-Spartanburg market average 7%-8%, and while anything over 10% is generally thought to be a higher-risk investment, it could actually yield a greater profit. Below are value-add investment properties currently available in the Greenville-Spartanburg market.  

 

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2020 Q1 Office Greenville-Spartanburg Report

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Related Experts

Brantley Anderson

Vice President

Greenville

As a Vice President in the Greenville, SC office, I specialize in office leasing and sales as well as tenant representation. My primary responsibility is to represent local ownership entities, private equity groups and national REITS on their real estate portfolios in the Upstate (Greenville-Spartanburg). Working through acquisitions, repositioning, leasing and disposition, our team delivers comprehensive leasing strategies and innovative solutions to landlord clients. Utilizing a marketing background, I am able to think creatively and provide effective solutions for rebranding and repositioning assets in our portfolio, maximizing the potential of each property and positioning clients for success. Our innovative property marketing, financial analyses and thoughtful comprehensive leasing strategies are best in class.

My team is responsible for the leasing of over 1,500,000 square feet of office properties in the market. 

Since 2015, my team has completed more than $500 million in transactional volume.

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Taylor Allen

Vice President

Greenville

As a Vice President in the Greenville, SC office, I specialize in office leasing and sales. My primary responsibility is to represent local ownership entities, private equity groups and national REITS on their real estate portfolio in the Greenville-Spartanburg market, also known as the Upstate. Working through acquisitions, repositioning, leasing and disposition, our team delivers innovative solutions to both landlord and tenants alike.

My strength is providing creative solutions to our firm’s clients, including landlords, tenants and investors by incorporating local expertise while leveraging the Colliers platform. Bringing value to every transaction is my goal, and I can accomplish this goal through creativity and a strategic approach.

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Bailey Tollison

Senior Brokerage Associate

Greenville

I specialize in office leasing and investment sales, working alongside Brantley Anderson and Taylor Allen. Our team’s exclusive focus on office transactions allows us to be experts in our field, providing specialized knowledge to our clients’ office needs.

The most rewarding part of my job is building relationships with clients that don’t end after a transaction is complete. We feel our team’s strengths in financial modeling, marketing and data/technology, combined with a positive attitude, responsiveness and focus on customer service, provide a world-class experience for clients.

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