April Newsletter

Quarter One Recap

Spartanburg County Industrial Real Estate Trends – Q1 2025

Here's a closer look at the latest trends:

• Stable Pricing & Cap Rates: Sales prices have remained steady at an average of $70 per square foot. The market cap rate is also holding firm at 8.6%.

• Moderate Rent Growth: Asking rents have seen a slight increase of 3.6% over the past twelve months, reaching $6.73 per square foot on average.

• Declining Sales Volume: The 12-month sales volume has dropped by 50.7%, a significant decline that points to a slowdown in transaction activity. This is due to a variety of factors, including higher financing costs and uncertainty about the market. Sales volume numbers for Q1 industrial in Spartanburg County indicate a 60% decline from Q4.

• Vacancy Rate: The vacancy rate for industrial properties in Spartanburg County stands at 10.9%. The vacancy rate has been slowly declining indicating that while transaction volume is down, existing inventory is steadily absorbing.

Broker Insight: We see a relatively strong user demand from business that are not impacted by wider economic concerns. The uncertainty about the economy is causing some buyers to hold off on making decisions. While the transaction volume has slowed, prices and cap rates have not adjusted much so far this year.

If you have any commercial real estate questions or needs, let's connect!

Emma McDaniel

864-580-1131

emma@mcdanielandco.com

Data Source: Costar

Last Month's Poll

What square footage range of flex buildings has the lowest vacancy in Spartanburg County?

10,000-20,000 sq ft

20,000-50,000 sq ft

50,000-100,000 sq ft

100,000 plus sq ft

Answer: 20,000-50,000 sq ft at 2.2% Vacancy

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4012 N Blackstock Rd, Spartanburg 

26,000 sq ft Flex Building 

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255 Henderson Street, Gaffney SC 

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Gaffney SC

255 Henderston Street

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About McDaniel and Company

Our Mission

To conduct real estate transactions using excellent service, professional knowledge, and sound ethics to enrich the lives of our clients and to contribute to the economic growth and development of the Carolinas. 

Our Vision

To be the best commercial real estate brokerage in our market area.

Our Core Values

• Serving Clients’ Best Interest
• Integrity
• Professionalism
• Respecting the Public’s Best Interest
• Commitment to Economic Growth

Want to discuss? Connect with us!

446 Oak Grove Road

Spartanburg, SC

McDaniel and Company is one of the Upstate region’s leading commercial, industrial, multi-family, and investment property firms. We deliver on all levels. Our reputation and years of experience are factors you can count on.