Commercial Real Estate Research & Forecast Report Q1 2022 Greenville-Spartanburg Office
Market Highlights
The preference for quality office space is accelerating, forcing the vacancy rate down. The overall Class A vacancy rate was 7.4% during the first quarter of 2022 compared to 18.69% during the first quarter of 2021. Few quality office spaces are still available below 5,000 square feet.
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Key Takeaways
Flight-to-quality trend continues
Rental rates will increase when improved office space is completed
Smaller leases are driving office activity
Summary
Therefore, many owners will build out speculative suites, some by mid-year, to accommodate the need for smaller quality office space. To align office buildings with tenants’ preference for Class A space, owners are exploring options to maximize capital improvements. Adding building amenities or upgrading existing ones will attract new tenants and retain current ones. The preference for quality space with added amenities will force the rental rates higher as improved office space is completed.
About Colliers
Colliers | South Carolina has over 140 staff members, including 62 licensed real estate professionals, covering the entire state with locations in Charleston, Columbia, Greenville and Spartanburg. Total 2021 brokerage volume exceeded $1 billion, which included over 590 sales and leasing transactions. In addition to traditional commercial real estate representation services for our clients, the company is actively engaged in Corporate Solutions and Healthcare Services. Colliers is an Accredited Management Organization (AMO) through the Institute of Real Estate Management (IREM) and is the largest manager of commercial real estate properties in South Carolina, with a portfolio of over 17 million square feet of office, industrial, retail and healthcare properties. Colliers’ staff hold 54 professional designations, the most of any firm in South Carolina. Colliers | South Carolina’s partner, LCK, provides project management services for new facilities and renovations across South Carolina and set a new record by managing a portfolio of projects approaching $1 billion in volume during 2021.
Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 67 countries, our more than 15,000 enterprising professionals work collaboratively to provide expert advice to real estate occupiers, owners and investors. With annualized revenues of $3.0 billion ($3.3 billion including affiliates) and $40 billion of assets under management, we maximize the potential of property and accelerate the success of our clients and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn
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