2019-07-09_DTZ戴德梁行_Office_Q2_2019_Greenville,SC_1页_365kb

Greenville, SC Office Market Summary Q2 2019

Core Content Overview

This report provides an analysis of the Greenville, SC office market for Q2 2019, highlighting key economic indicators, market trends, and future outlook. It is prepared by Cushman & Wakefield | Thalhimer, a leading global real estate services firm.

Economic Indicators

• Employment: Employment in Greenville and Spartanburg increased slightly from Q2 2018 to Q2 2019, indicating a stable and growing job market.
• Unemployment: Unemployment rates decreased, showing improved labor market conditions.
• U.S. Unemployment: The national unemployment rate also declined, reflecting a broader economic expansion.

Market Indicators (Overall, All Classes)

• Vacancy Rate: The vacancy rate dropped from 9.3% in Q2 2018 to 7.2% in Q2 2019, suggesting increased demand for office space.
• Net Absorption: Year-to-date net absorption was negative in both quarters, indicating a net loss of space, but the trend is expected to improve over the next 12 months.
• Construction Activity: There is an increase in under-construction office space, signaling potential future supply.
• Rental Rates: Average asking rents rose slightly, with a projected increase in the coming months.

Market Overview

• The Greenville, SC office market experienced a strong first half of 2019, with notable activity in sales, leasing, and development.
• Flight to Quality: A significant trend is the movement of tenants toward high-quality, well-located office spaces, which is driving office renovations and upgrades.
• Key Renovations: Several prominent buildings are undergoing renovations, including 220 North Main (NOMA Tower), 104 South Main (Poinsett Plaza), and 101 North Main (Bank of America Tower).
• New Tenants: Several major companies relocated or expanded their presence in the area, such as:
  • NCEES relocated to Greenville County, purchasing 200 Verdae.
  • AssuredPartners expanded after leasing 11,780 sf at One Liberty Square.
  • World Acceptance Corporation moved into over 45,000 sf in Poinsett Plaza.
• Development Projects: The mixed-use development, Canvas, in the Arts District of Heritage Green is expected to expand the CBD further west.
• Camperdown Tower: The Camperdown office tower at 423 South Main is filling up, with two relocations announced to move in by the end of 2019.
• Major Leases: Bank of America and Elliott Davis leased significant spaces to kick off leasing activity in the market.

Outlook

• The Southeast economy remains strong, and the upstate of South Carolina is poised for growth in population, labor, and income.
• The CBD is dominated by tenants in the Financial and Professional Services, Banking, Healthcare Administration, and Legal sectors.
• The City of Greenville has hired a consulting firm to support a pro-business environment, aiming to attract new satellite offices and enhance opportunities for existing businesses.
• Construction Costs: Rising construction costs are leading occupiers to seek more concessions from landlords, which may influence future leasing strategies.

Contact Information

• Wells Fargo Center
  15 South Main St. Suite 502
  Greenville, SC 29601
  www.thalhimer.com

• For more information, contact:
  Brian Young
  Senior Vice President
  Tel: +1 864 370 8087
  Email: brian-young@thalhimer.com

About Cushman & Wakefield

Cushman & Wakefield (NYSE: CwK) is a leading global real estate services firm, offering services such as property management, leasing, capital markets, and valuation. With approximately 51,000 employees across 400 offices in 70 countries, the firm had $8.2 billion in revenue in 2018. The report is provided by Cushman & Wakefield | Thalhimer and is subject to the terms and conditions of the firm.