What's In Store For 2024?

Projected Trends in 2024 Spartanburg, SC

Retail

Vacancy

Currently, retail vacancy is at 3.0%. The vacancy rate is projected to remain low throughout the year hovering at 3.1%.

Rent Growth

Despite a low vacancy, the 12 month rent growth will remain relatively low. The end of year 12 month rent growth is projected to be 2.2%. Based on this prediction, the Q4 price per square foot for lease will be $14.22.

Sales Price

Retail prices are anticipated to drop a little this year. The current market price per square foot for sale is $131. By Q4 2024, that price is projected to be $117 per square foot.

Cap Rates

The lower sales prices will yield a higher cap rate. While the current retail cap rate is 8.1%, cap rates are projected to increase to 9.2% by the Q4.

Considering the favorable cap rates and low vacancy, retail may be a favorable asset class to invest in this year.

Office

Vacancy

The current office vacancy rate is 4.1%. By Q4 of 2024, the vacancy rate is projected to rise to 4.7%.

Rent Growth

Annual rent growth is projected to be -.4% by Q4 2024. The current average office rent is $21.03 per square foot. By Q4, average rent is projected to be $20.95 per square foot.

Sales Price

By Q4 of this year, the market price per square foot for sale is projected to be $109 which is slightly down from the current average price per square foot of $119.

Cap Rates

By Q4, market cap rates are projected to rise to 11.4% from the current cap rate of 10.5%.

Following the national trends, it looks like there are some challenges ahead for office in Spartanburg this year.

Multi Family

Vacancy

The current vacancy rate is 15.2%, and vacancy is projected to be 15.4% by Q4, 2024.

Rent Growth

Despite the higher vacancy, rent growth is projected to improve this year. While the current 12 month rent growth is 1.4%, annual rent growth is projected to be 3.6% by the end of this year. By Q4, the average asking rent per unit is expected to be $1273.

Sales Price

The market sales price per unit is anticipated to decline this year from the current $141,000 per unit to $128,000 per unit.

Cap Rates

Cap rates are expected to increase this year from the current 5.6% to 6.3% by Q4 2024.

Data Source: Costar



What is projected for industrial real estate in Spartanburg, SC this year?

Vacancy

The vacancy is expected to remain relatively stable this year hovering around 13%.

Pricing and Rent Growth

Year over year rent growth is projected to decline this year. While the current 12 month rent growth is 8.2%, the Q4, 2024 rent growth is projected to be 2.8%. The Q4 price per square foot for lease is expected to be $6.42. The decline is annual rent growth is steep considering 2021 year over year rent growth was 10.1% and 2022 year over year rent growth was 11.9%

The current price per square foot for sale is $66, and that price is expected to only decline slightly to $64 per square foot by Q4 of this year.

Absorption

The 12 month next absorption is expected to be 2,667,263 square feet with 4.7% of inventory under construction.

Cap Rate

Cap rates are anticipated to rise this year. While the current industrial cap rate is 8.3%, the cap rate is expected to rise to 8.9% by Q4 of this year.

Important Note

Industrial trends are expected to vary significantly based on size and building class. For example, the vacancy rate for industrial buildings 50,000 sq ft and under is expected to be 4.7% by Q4 2024 with slightly higher rent growth than overall industrial projections.

Select one of the options above, and we will help you achieve your commercial real estate goals this year!

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Let's Talk 2024 Industrial and Retail

What are the projections for industrial and retail in 2024? Watch Below!

And Let’s Talk About Your Commercial Real Estate Goals in 2024:

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Market Data for Spartanburg, SC

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

Source: Costar Data

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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
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• Respecting Public’s Best Interest
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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.