Q1 2025 Market Reports
Industrial
South Carolina’s Upstate, anchored by Greenville and Spartanburg, has emerged as a hub for manufacturers and distributors—particularly those tied to the automotive industry. The presence of BMW’s largest global production facility in Spartanburg and proximity to the I-85 corridor have attracted major retailers and logistics operations. Since 2020, over 12 million SF of industrial space has delivered in Greenville, much of it large-box. Although this outpaced leasing for a time, demand is catching up in 2025, easing vacancy pressures. Smaller-box space remains tight, with availability below 5%.
Office
The office market in Upstate South Carolina, particularly in Greenville and Spartanburg, reflects broader regional and national trends while showing signs of resilience. Greenville, known for its strong manufacturing and logistics presence, has seen steady growth in office-using sectors such as financial and professional services. Job growth of over 12% since 2020 has helped keep vacancy rates below the national average. While leasing activity remains about 10% below pre-pandemic levels, a few large deals in 2024 stabilized absorption after a sluggish 2023. New construction has been limited and largely build-to-suit, reducing supply pressure and supporting rental rates.
Retail
The Upstate South Carolina retail market continues to demonstrate strength, fueled by population growth and economic expansion—particularly in Greenville. As one of the fastest-growing mid-sized Sun Belt metros, Greenville’s influx of new residents has driven consistent demand for retail space. Despite store closures and some early 2025 negative absorption, availability remains near record lows at 3.6%, and leasing volume remains strong, matching pre-pandemic levels. Experiential retailers have quickly filled vacated big-box space, while high construction costs have limited new development to mixed-use and grocery-anchored projects.
