Oversupply of Industrial Real Estate in Greenville-Spartanburg-Anderson Market Sparks Caution Among Developers

A recent report reveals an oversupply of industrial real estate in the Greenville-Spartanburg-Anderson market, with 20 projects totaling 8.9 million square feet under construction, primarily speculative builds.

The market is experiencing a decrease in new construction deliveries compared to last year, leading to caution among developers due to an increase in sublease space.

The direct vacancy rate and overall availability rate in the region have reached their highest levels since Q4 2020, with only 1.8 million square feet of the 8.9 million square feet under construction being build-to-suit.

CBRE’s future outlook anticipates increased leasing activity and positive absorption in 2024, supported by strong market fundamentals and factors like intermodal growth and the BMW plant expansion.

Despite the oversupply, significant industrial activity has been observed in the Greenville-Spartanburg market, including the sale of a Class A industrial park and the development of warehouse and distribution facilities.

In Q1, the overall asking rental rate for industrial space in the market increased, with average rates for flex space and warehouse space also seeing an uptick.

CBRE’s industrial real estate snapshot for Q1 2024 offers a comprehensive overview of the Upstate’s industrial market, covering leasing activity, rental rates, available space, and market trends.