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Vacancy
Industrial real estate demand depends heavily on the building's square footage!
Overall, the industrial vacancy rate in Spartanburg is 11.2% which is a substantial increase from the 3.8% vacancy rate 12 months ago!
There is a huge caveat to this trend; the spike in vacancy rates is concentrated in the larger industrial buildings, while the demand for smaller industrial buildings has remained robust.
In Spartanburg, the vacancy rate for industrial buildings over 100,000 square feet is 13.6%.
But….
- For industrial buildings 30,000 sq ft and under, the vacancy rate is 4.7%.
- For industrial 30,000 sq ft - 60,000 sq ft, the vacancy rate is 5.6%
- For industrial 60,000-100,000 sq ft, the vacancy rate is 4.3%
Rent and Pricing
The average price per square foot for lease is $6.23.
The previous twelve months rent growth is 9.46%.
The average per square foot sales price is $66, and the average cap rate is 8.3%.
The market price per square foot is projected to decline slightly to $62 in the next 12 months, and the average industrial cap rate is projected to be 9.0% in Q2 2024.
Inventory
The current inventory is 115 million square feet with 7.5 million square feet under construction.
31.2 million square feet of Spartanburg’s industrial inventory is buildings smaller than 100,000 square feet, while the remaining inventory is industrial buildings larger than 100,000 square feet.
Reach Out
These trends cover industrial real estate of all sizes and classes in Spartanburg. As discussed, there is a large discrepancy in vacancy and demand for different size industrial and flex buildings. If you’re interested in discussing a particular size or category, reach out at emma@mcdanielandco.com
Source: Costar Data
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