The I-85 corridor has long been a pivotal artery for industrial and commercial real estate, with Greenville, SC, emerging as a hotspot for businesses seeking strategic distribution and manufacturing locations. The area’s appeal is bolstered by its proximity to major Southeastern cities like Charlotte and Atlanta, making it an ideal locale for distribution center operations. This trend was highlighted in the Q4 2023 market report, with significant leases such as Walgreens securing a 687,251 SF space.

The recent report reveals a mixed picture; while there has been a slowdown in absorption and a rise in vacancy rates to 8.3%, the market’s long-term outlook remains optimistic. The slowdown is partly attributed to cooling consumer spending, impacting the rate of industrial space absorption. Despite these challenges, the market saw the delivery of approximately 15 million SF of industrial inventory in the past 12 months, with another 8.9 million SF currently under construction.

Rental rates in Greenville have shown stability, ending the year at $4.91 per square foot. This stability, despite the broader market fluctuations, indicates a resilient market that continues to attract investment, particularly in sectors like the automotive industry, which remains a significant focus of industrial activity in the region.

The Greenville/Spartanburg area’s strategic importance is further underscored by the types of properties under construction, including large-scale developments that are poised to bring new opportunities to the market. This development activity, while slowing, suggests a cautious optimism among developers, aiming to balance supply with the evolving demand landscape.

In conclusion, the industrial commercial real estate market along the I-85 corridor through Greenville, SC, is navigating through a period of adjustment. With a solid foundation of existing inventory and new developments on the horizon, the region is well-positioned to capitalize on its strategic location, maintaining its role as a key player in the Southeast’s industrial and commercial real estate sector. The dynamics of this market, reflecting broader economic trends, continue to offer valuable insights for investors, developers, and businesses looking to the future.

View the full Q4 2023 report.

Lee & Associates is the largest broker-owned commercial real estate firm in North America, with over 75 offices across the U.S. and Canada. Established in 2011, Lee & Associates Greenville / Spartanburg brings unsurpassed market intelligence to clients engaged in the acquisition, disposition, and leasing of industrial, office, retail, flex, and investment properties in Upstate South Carolina, and Western North Carolina.

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