Lee & Associates-Greenville Releases First Quarter CRE Summary
Greenville, SC—April 21, 2015—The Greenville office of Lee & Associates recently released its first quarter 2015 market report summary for the commercial real estate markets in the Greenville/Spartanburg area. Almost all disciplines (industrial, office, and retail) show a decrease in vacancy rate as well as positive net absorption rates. Additionally, all submarkets experienced increases in rental rates this quarter, illustrating the strength in demand the market is continually gaining.
According to the report, the industrial market ended the first quarter with a vacancy rate of 7.7%. This is an increase from the fourth quarter, when rates were reported at 7.2%. Net absorption for the overall Greenville/Spartanburg market was negative (344,472) SF for this quarter. The average quoted asking rental rate for available industrial space was $3.56/SF at the end of this quarter. This is a 2.5% increase in quoted rental rates from the end of the fourth quarter 2014, when rates were reported at $3.48/SF. Total inventory in the market totals 195,017,116 SF in 4,705 buildings. Three buildings totaling 716,000 SF were completed this quarter, with 2,069,050 square feet still under construction. The largest specialty project underway is the GITI Tire plant, a 1.8 million square foot plant in Chester, SC.
The office market ended the first quarter 2015 with a vacancy rate of 8.5%. The vacancy is down over the previous quarter, when vacancy was reported at 9.0%. Net absorption totaled 245,007 square feet in the first quarter, which compares to positive 25,682 SF in the last quarter of 2014. The Class A market recorded net absorption of 83,783 SF for this quarter, with an average quoted rental rate of $21.09/SF. The Class B market recorded a positive net absorption of 144,794 SF with an average quoted rental rate of $14.00/SF. The CBD saw a positive 102,789 SF absorbed for first quarter 2015 with rates of $20.20/SF. The average quoted asking rental rate for available office space, all classes, was $15.01/SF at the end of the first quarter 2015. Inventory of the office market currently totals 36,327,583 SF in 4,227 buildings. During the first quarter of 2015, 7 buildings totaling 67,591 SF were completed. There are still 225,200 SF under construction at this time.
The retail market did not experience much change during the first quarter. The vacancy rate went from 6.7% in the previous quarter to 6.6% for the first quarter of 2015. Net absorption was positive 206,478 SF in fourth quarter 2014, net absorption was positive 232,913 square feet. Quoted rental rates increased from $9.62/SF at year end 2014 to $9.81/SF at the end of the first quarter 2015. This represents a 2.0% increase in rental rates from quarter to quarter, and a 5.20% increase when compared to rates from four quarters ago. Total retail inventory in the market area amounted to 84,004,461 SF in 9,634 buildings and 948 centers. During the first quarter 2015, ten buildings totaling 166,811 SF were completed. There are still 232,132 SF of retail space under construction at the end of the first quarter 2015.
“As the market continues to gain momentum, we anticipate the commercial real estate market will finish the year as strongly as it is beginning it”, according to Randall Bentley, president of Lee & Associates—Greenville.
For more information on the Greenville/Spartanburg area, visit Lee & Associate—Greenville’s website at www.lee-commercial.com.
About Lee & Associates
Celebrating more than 36 years of leadership excellence in commercial real estate, Lee & Associates is the largest broker-owned firm in the country with locations across the nation including California, Colorado, Arizona, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Maryland, Michigan, Missouri, Nevada, New Jersey, New York, Ohio, South Carolina, Texas, and Wisconsin. With 800 brokers nationwide, Lee & Associates provides a wide range of specialized commercial real estate services on a local, regional and national level. Additional information can be found at http://www.lee-associates.com You can also follow us on Facebook, LinkedIn and Twitter.