Wrapping Up 2023

Commercial Real Estate Year in Review

2023 in Review. Let's Talk CRE in 2023, Spartanburg SC

Retail

Retail trends have trended downward in 2023, with the exception of the average price per square foot which is slightly higher in 2023 than the previous year. However, 4.3% is relatively low vacancy.

Office

The office market is doing decently well in Spartanburg compared to several other US markets, but overall, office trends are down compared to 2022.

Multi Family

As a large wave of inventory hit the market in the past few years, multi family needs some time to absorb. Although current vacancy rates are slightly lower than 2022 vacancy rates, the 12 month rent growth has remained relatively low at 2%.

Data Source: Costar



Quarter One 2023: How Did Industrial Start Off This Year, Spartanburg, S.C.?

Vacancy

In the beginning of 2023, there was a 4.6% vacancy rate. This was approaching double the lowest recent vacancy rate of 2.7% in Q3 2022.

Availability

There were 14.7 M square feet of industrial space available in the market. Of this availability, 1.4M square feet was sublet space. This was a large increase compared to the 496,000 square feet of sublet space available in in Q4 2022.

Pricing and Rent Growth

The average price per square foot for lease was $5.93/ square foot. The annual rent growth was 11.9%, which is slightly lower than the peak twelve month rent growth of 12.4% in Q3 2022.

The market price per square foot for sale was $64.

Absorption

The twelve-month absorption rate was 4,231,267 square feet.

Cap Rate

The market cap rate was 8.1%

Sales Volume

The twelve month sales volume was $333M. This transaction volume was a 58.7% decline compared to Q1 2022 sales volume.

Quarter 4, 2023 (Quarter to Date): What Do Industrial Trends Look Like Now?

Vacancy

The current vacancy rate is 11.6%, which is a substantial increase from the Q1 vacancy.

The majority of the increase is concentrated in the large industrial buildings (100,000 square feet and larger). To learn more about the difference in vacancy rates for small and large industrial buildings, you can read our blog here.

Availability

There is currently 21.8M square feet of industrial space available.

3.7M square feet is sublet space while the rest is direct.

Pricing and Rent Growth

The average price per square foot for lease is $6.23 with an annual rent growth of 9.0%. Considering the rise in vacancy, rent growth has remained relatively strong in 2023.

The market price per square foot for sale has risen to $67 per square foot.

Absorption

The twelve month net absorption is 2,235,112 square feet which is much lower than the Q1 absorption. However, absorption is projected to be 3,971,290 by the end of this quarter.

Cap Rate

The average cap rate is 8.3%, which is not substantially higher than the Q1 cap rate of 8.1%.

Sales Volume

The 12 month sales volume is $202M which is a 54.9% decline compared to sales volume 12 months ago.

Data Source: Costar

Now that we've covered 2023, you may be wondering that is projected for 2024 trends.

Our January newsletter will dive into the projected trends for the coming year!

How is Commercial Real Estate Performing in Spartanburg Compared to US Trends?

Let’s take a moment to review how each asset class is performing in Spartanburg, S.C. relative to overall US trends. If you’re an owner looking...

Check Out Our Videos!

Let's Talk Office and Industrial Real Estate

How does office and industrial in Spartanburg compare to national trends?

Let's Talk Retail & Multi Family

How does retail and multi family in Spartanburg compare to national trends?

Let's Talk Ground Leases

What is a ground lease?

Why consider a ground lease?

Market Data for Spartanburg, SC

What are the current market cap rates in Spartanburg, S.C.?

Source: Costar Data

Featured Listings

Our 41st year in Business

2023 marked our 41st year in business. This year, we were able to continue doing what we enjoy most: serving clients!

Thank you for choosing to work with us for the last 41 years!

Our Mission

To conduct real estate transactions using excellent service, professional knowledge, and sound ethics to enrich the lives of our clients and to contribute to the economic growth and development of the Carolinas. 

Our Vision

To be the best commercial real estate brokerage in our market area.

Our Core Values

• Serving Clients’ Best Interest
• Integrity
• Professionalism
• Respecting Public’s Best Interest
• Commitment to Economic Growth

Want to discuss? Connect with us!

446 Oak Grove Road, Spartanburg, SC

McDaniel and Company is one of the Upstate region’s leading commercial, industrial, multi-family, and investment property firms. We deliver on all levels. Our reputation and years of experience are factors you can count on.