Construction completions are expected to be quickly absorbed
Key Takeaways
- Increased interest in the Greenville-Spartanburg market has fueled industrial activity throughout the pandemic thus far, the market absorbed 117,104 square feet.
- Speculative construction deliveries pushed the vacancy rate up to 7.11% during the second quarter of 2020.
- The next phase of construction will not be delivered until the middle of next year, so the available industrial space is expected be absorbed within the next few quarters.
Greenville is the place to locate
According to the U.S. Census Bureau, Greenville’s population has increased 19.2% from 2010 to 2019. Also, according to the Post and Courier, South Carolina’s growth percentage is ranked ninth in the U.S. The pandemic has forced people to evaluate where they live, and those cities with less dense populations in tertiary markets such as Greenville-Spartanburg are becoming popular places for large city residents to locate. Due to the influx of people throughout the state, housing demand has increased exponentially. In addition, the arrival of new residents will add to the labor pool and create opportunities for employers to choose employees from a larger group of applicants.
Increased interest in the Greenville-Spartanburg market has fueled industrial activity throughout the pandemic thus far. Speculative construction completed during the second quarter of 2020, and the market posted positive absorption throughout the market. Despite the vacancy rate increasing due to speculative construction deliveries, most of the construction pipeline is now built and the next phase of construction is not expected until next year. Industrial demand is high enough throughout the market that the construction delivered during this quarter is expected to be absorbed by year-end.
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