Q4 2022 Office Space Report: Greenville, SC
Specializes in providing actionable insights into the commercial real estate space for investors, brokers, lessors, and lessees. He covers quarterly market data reports, investment strategies, how-to guides, and top-down perspectives on market movements.
Greenville, SC houses major businesses like GE Power, Michelin North America, and Hubbell Lighting among others.
Unemployment increased from 2.4% to 2.6% quarter-over-quarter at the end of 2022.
The metro area population of Greenville increased by 1.85% in 2022.
At the end of Q4 2022, Greenville’s office space market saw declining vacancies and decreased absorption yet rising rental rates.
General Area Overview & Demographics
Greenville, South Carolina’s metro area had a population of approximately 550,000 in 2022. The racial demographics of Greenville are 87.4 percent white, 9.3 percent African American, 2.1 percent Hispanic or Latino, 0.9 Native American, 3.2 Asian, 0.0 Pacific Islander, and 1 percent from other races.
Greenville, SC Median Household Income & Population
The median household income in Greenville is $48,856 per year: 57.1% of households make over $50,000 annually, while 35.9% make between $25,000 and $49,999 per year.
In terms of age demographics, 30.8 percent of the population is under 18 years old, while 67.8 percent are between the ages of 18 and 64. The median age in Greenville is 37.3 years old.
Greenville is home to several higher education institutions, including Furman University and Clemson University. Additionally, the city is served by Greenville Technical College and Bob Jones University.
Popular attractions in the city include the Falls Park on the Reedy, which is a 32-acre park with walking trails, waterfalls, and lush gardens; The Peace Center for the Performing Arts; and the Swamp Rabbit Trail. Additionally, residents enjoy seasonal events such as the South Carolina Apple Festival, Artisphere, and TD Saturday Market.
The climate is humid and subtropical with hot, humid summers and mild winters. The average high in summer is around 87 °F (31 °C) and the average low in winter is about 34 °F (1 °C). Average annual precipitation is 47 inches and snowfall occurs once or twice a year. The average monthly temperature for Greenville is around 52°F (11°C).
Summary of Greenville Office Space Performance in Q4 2022
The overall vacancy rate for Greenville office space in Q4 2022 was 14.89%. Approximately 2.2 million square feet of office space were vacant at the end of 2022.
Q4 2022 saw negative absorption for Greenville office space at -30,200 square feet. This was a slight improvement from Q3, which saw -43,400 in absorption.
Most of Q4’s absorption occurred in Class C space in suburban submarkets.
What are office space rents like in Greenville?
Asking lease rates for Greenville office space increased $0.29 quarter-over-quarter to $24.30 in Q4 2022.
The highest asking rate in Q4 2022 was for Class A property in the Greenville CBD market at $26.95 per square foot.
The lowest was for Class C space in its suburban submarket at $17.75 per square foot.
Purchase & Leasing Activity
Office space sales volume for Q4 2022 was around $4 million at an average of $157 per square foot. This was a significant decrease year-over-year, as Q4 of 2021 saw nearly $120 million in transactions.
Leasing activity totaled around 123,000 square feet. This was a slight decrease from Q3.
Notable Office Space Deals in Greenville in Q4 2022
Several notable deals took place for Greenville’s office space market in Q4 2022:
- NOMA Flats sold 40,000 square feet for $6.7 million at $167.50 per square foot.
- Taylor Enterprises, Inc. leased 15,911 square feet in the Spartanburg CBD submarket.
- McMillan Pazdan Smith Architecture leased 13,000 square feet in Spartanburg CBD.
- Corsica Technologies leased 7,500 square feet in the Greenville CBD submarket.
These are select examples among other activity.
New Office Space Development Activity in Greenville in Q4 2022
Over 200,000 square feet of new deliveries was brought to market in 2022 for Greenville.
Q4 2022 saw 80,000 square feet of new office space under construction, nearly 100,000 square feet less than what Q4 of 2021 saw.
Market Forecast for Greenville’s Office Space Market
Greenville office space market showed positive potential in Q4 2022.
Vacancy rates are forecasted to trend downward as employees continue to return to the office post-pandemic and companies renew their leases or look to invest in new properties.
Net absorption is expected to increase in 2023 as leasing transactions in 2022 saw an upward trend.
These factors coupled with a 4.1% employment increase in Greenville year-over-year could provide positive activity in its office space market for 2023.
Takeaways for Office Space Investors
While the Greenville office space market is showing positive trends heading into 2023, sales velocity experienced some decline.
Increased interest rates and nationwide economic uncertainty are causing hesitancy among potential tenants.
Current tenants are also showing an unwillingness to sell in order to preserve the low interest rate they previously acquired.
Do your research, stay diligent, and invest wisely.
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