This Year VS Last Year: Where Are We?
Vacancy
Industrial vacancy rates have risen since last year. The Q2 2022 industrial vacancy rate was 3.2%.
The estimated Q2 2023 vacancy rate is 8.2%.
There is a disparity in industrial vacancy rates among different square footage ranges. Although vacancy rates are higher than 12 months ago, there is a very strong demand for smaller industrial properties (50K sq ft and under) in the Upstate and in many other areas in the Sunbelt states.
Price
Industrial rents are still rising.
12 months ago, the average industrial price per square foot was $5.56. The estimated Q2 2023 price is $6.14/ sq ft.
The estimated Q2 2023 average industrial price per square foot is $69 a square foot (up from $61/ sq ft 12 months ago).
Industrial prices have more than doubled in the past decade.
Ten years ago, the average price per square foot for sale was $32. The price per square foot to lease was $3.40/ sq ft with an annual rent growth of 2.6% (compared to the current 11.6% rent growth).
Inventory
Spartanburg has the second largest industrial growth rate in the Southeast at 13.3%, with Savannah in first place.
In 12 months, Spartanburg’s industrial inventory has grown from 101M inv to 110M square feet.
Source: COSTAR DATA
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