A tale of two cities: Greenville/Spartanburg industrial market sees diverging vacancy rates amid surge in new inventory

The Greenville/Spartanburg industrial market has experienced a wide split in its vacancy rate over the past two years. Greenville has a 6.4% vacancy rate, while Spartanburg is hovering above 14%.
Large amounts of big box, class A inventory hit the market in Spartanburg, with over 20 million square feet (msf) delivered in 2023 and 2024. Existing inventories are relatively comparable, with Greenville boasting roughly 130 msf, and Spartanburg home to another 114 msf.
The stark contrast in vacancies is a result of new product entering Spartanburg, where market absorption has not kept pace, as opposed to the steady growth in Greenville. From 2015-2022, Spartanburg saw an average vacancy rate of 6% but has yet to absorb new product.
Greenville/Spartanburg remains an intriguing market for occupiers, with proximity to major highways, such as I-85. The vacancy rate in Spartanburg is expected to begin stabilizing, as only about 1 msf remains under development. In the near term, vacancy rates may remain elevated; however, steady leasing velocity and limited new development will drive increased absorption, resulting in a stabilized vacancy rate over time.

February 24, 2025

US-SC-GSP Greenville