Q4 Industrial Market Insights – Spartanburg County
As we close out 2025, the Spartanburg County industrial market continues to show resilience and opportunity despite broader economic headwinds. Here’s a look at where things stand and what to watch this quarter.
Market Snapshot – Spartanburg County
- Vacancy Rate: 10.9%
- Average Asking Rent: $6.87 PSF
- Sales Price: $77 PSF
- Cap Rates: 8.3%
- 12-Month Rent Growth: 3.8%
While vacancy has ticked up compared to the historically tight years of 2021–2023, rents are holding steady with healthy annual growth. For investors, the higher cap rate environment is beginning to create buying opportunities not seen in several years.
Interest Rate Cuts – A Shift for Investors
The recent interest rate cuts by the Federal Reserve are bringing optimism back into the market. Lower borrowing costs could boost deal activity, especially for buyers who have been sitting on the sidelines. Sellers may also find more motivated buyers as financing becomes slightly more favorable.
Seasonal Dynamics in Q4
The fourth quarter often brings a natural slowdown in transaction volume, but that doesn’t mean opportunity disappears. Many companies are finalizing year-end strategies, which can trigger leasing activity as they plan for 2026. At the same time, some sellers may become more flexible in negotiations to close a deal before year-end. For buyers, this can create unique leverage in Q4 compared to more competitive quarters.
Tax Planning Reminders
The end of the year is also a critical time for property owners to review tax strategies. Even if you aren’t planning to sell or buy in the next 90 days, Q4 is when you could review items such as:
- 1031 exchange planning for upcoming transactions
- Property tax reassessments
- Reviewing capital improvements made this year
While I’m not an accountant, these reminders can help you prepare for discussions with your financial team and ensure you’re not leaving money on the table.
Opportunities for Buyers
With cap rates at 8.3% and vacancies slightly elevated, Q4 presents a window for buyers to acquire well-located industrial assets at more favorable pricing than we’ve seen in recent years. Paired with lower financing costs, this quarter may be one of the best times in recent memory to secure assets in Spartanburg’s growing industrial corridor.
Emma McDaniel, CCIM
📞 864-580-1131
📧 emma@mcdanielandco.com
| 
