Even as vacancy rates reach new highs across the country and many companies embrace remote or flexible workspaces, offices in Greenville and Spartanburg remain occupied.
Figures from the first fiscal quarter, gathered by real estate firm CBRE, show that the Greenville-Spartanburg office market saw a slight decrease in the number of vacant offices coming into 2024.
The market’s current vacancy rate is about 10 percent, according to CBRE research. By comparison, the Wall Street Journal reported that some major U.S. cities are experiencing office vacancies nearing 20 percent.
America’s offices haven’t been this empty since at least 1979, the Journal wrote, attributing the trend to years of overbuilding and a gravitation toward remote work.
Unlike some other markets, Greenville-Spartanburg doesn’t have a glut of office space for companies to choose from. CBRE wrote in their Q1 report that tenants are often “having to remain in their current offices due to a scarcity of quality location offices.”
The report notes that 103,000 square feet of office space is currently under construction as part of Greenville’s County Square redevelopment. The building is expected to be finished next year.
Though it will add to the total office space in Greenville’s central business district, CBRE notes that County Square’s new offices will be mostly occupied by the time the project is complete.
New office buildings in the central business district — which covers downtown Greenville — have proven to be highly sought after, given their vacancy rate of 3 percent. Older buildings in the same area are still seeing a vacancy rate of about 11 percent.
Both new and old office buildings in Spartanburg are equally occupied with a vacancy rate between 4 and 5 percent. Offices in Spartanburg are also less expensive than in Greenville by about $5 per square foot, but Spartanburg has significantly lower inventory.
Greenville Area Development Corp bids leader adieu
After more than two decades with GADC, its current president and interim CEO Kevin Landmesser announced his retirement on Jun. 27.
GADC is a non-profit organization created by Greenville County Council to act as a liaison between the business community and local government.
Under Landmesser’s leadership, Greenville County has seen the creation of more than 10,000 announced jobs and $4.2 billion in announced capital investments.
Among his proudest achievements are the successful management of major projects for companies such as Lockheed Martin, Michelin and GE Power.
“After 23 remarkable years with the Greenville Area Development Corporation, I reflect on the incredible impact we have made in Greenville County and look forward to this next chapter,” Landmesser said in a press release.
Landmesser’s current duties will conclude on Aug. 16, but he will stay with the company in a consulting role to assist with the transition of GADC’s new CEO, who has yet to be announced.
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