Quarter One Summary, Commercial Real Estate Update, Spartanburg

How was Q1, 2024? (Compared to Q1 2023)

Office

Office rents have increased slightly since Q1, 2023. The 12 month rent growth has declined substantially, along with net absorption. The sales volume was higher Q1 2024, and cap rates increased from 10.4% to 10.7%.

Retail

Rent per square foot and 12-month rent growth declined slightly from Q1 2023 to Q1 2024. The 12 month net absorption was only slightly lower in Q1 of this year, and the cap rate remained stable. Sales volume declined 33% from Q1 2023 to Q1 2024.

Industrial in Q1, 2024

Industrial in Q1 of this year lagged behind Q1 2023, although the sales price per square foot remained almost the same year over year.

The Upstate was hit with a wave of new industrial projects as the economy began to cool.

The data below represents average industrial trends across every class and size of industrial buildings. While the vacancy rate for large industrial buildings (100,000 sq ft and over) is 14.3%, the vacancy for industrial buildings under 100,000 sq ft is 5%

Industrial Fast Facts

• According to an article published by Costar, during Q1 of this year, the Upstate had one of the largest expansions in the past 12 months for industrial inventory in the US. 80% of the expansion has been in warehouses 250,000 sq ft or larger.

• Costar ranked the Greenville/ Spartanburg market #28 in the nation for the most acute shortage in small industrial space. This ranking was based on three factors: 1) availability rate of properties 50K sq ft and under 2) median months to lease space 10K-25K sq ft, and 3) median months to lease space 10K sq ft and under. The only major markets in the neighboring states that ranked above Greenville Spartanburg was Greensboro, NC at #15 and Charlotte NC at #22

Submarket Spotlight!

The highest asking industrial rent by submarket

#1 101 Corridor $7.98/ sq ft

#2 290 Corridor $7.30/ sq ft

#3 East Side $6.84/ sq ft

#4 Northside/ RT 9 Corridor $6.67/ sq ft

#5 Spartanburg CBD $6.02/ sq ft

#7 Upper Spartanburg City $5.79/ sq ft

#8 Lower Spartanburg City $4.91/ sq ft

Data Source: Costar

Check Out Our Videos!

Let's Talk Small Industrial Properties

This video covers the demand for small industrial properties on a national level and in Spartanburg, SC.

Let's Talk Leasing vs Owning

➡ How do you decide? ➡ What are some advantages of each? ☑ Watch this video!

Let's Talk Lease Terms

Are you considering

➡ Negotiating a lease

➡ Marketing a property for lease

➡ Finding a property to lease

Let's Talk Cap Rates

This video covers average cap rates for:

✔ Industrial

✔ Retail

✔ Multi-family

✔ Office

Featured Property

About McDaniel and Company

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.