Written by Chris Schweighart
The Greenville-Spartanburg metro region, also known as South Carolina’s Upstate, has been in the news several times over the past year, due to an increase in popularity. Among many other accolades, Greenville, SC has been named America’s friendliest city, and both Greenville and Spartanburg were recently named one of the best places to live in the country. What many people don’t know is that the Upstate is also one of the top metro regions for manufacturing and warehousing in the country.
The Upstate Enjoys a Healthy Business Climate and a Strong Labor Market
Thanks to a healthy labor market, a strategic location on Interstate 85 between Atlanta and Charlotte, the interconnectivity of the Inland Port of Greer to the bustling Port of Charleston, and a very favorable business climate, the Upstate’s manufacturing sector is hitting on all cylinders, with the automotive industry being the key driver of this success.
Industrial Sales Volume Reaches an All-time High
This industrial focus helped the region weather the pandemic with lower-than-average job loss and a faster recovery than most states. Also, it enhanced the region’s reputation as a manufacturing and logistics powerhouse, attracting even more companies from other states and countries to the area. Investors have taken note of the Upstate’s success, with industrial sales volume in Greenville seeing an all-time high in 2021. Greenville wasn’t the only city seeing success, as Spartanburg had its second-best year on record as well.
Increased Demand for Industrial Space
So what does all this mean? Most importantly, demand for industrial properties in the Upstate is off the charts. And even with a massive amount of new construction recently completed or under development, the demand for industrial space far exceeds the supply. Second, both rental rates and prices per square foot have gone up dramatically over the past couple of years with rents increasing by nearly 10% in Greenville and Spartanburg counties year over year.
As a result, finding a property for lease or for purchase has become extremely difficult, especially for locally-owned, budget-conscious companies. Within the industrial sector, bidding wars and multiple offer scenarios are becoming all too common. Whether your company is a tenant in a building and looking to expand or a company that owns its property but may want to capitalize on all-time high sales prices, the help of a commercial real estate professional that specializes in industrial properties is more important now than ever before. Contact the experts at Parker Group to help you achieve your industrial real estate success in the Upstate.