The industrial market in the Greenville/Spartanburg areas has continued to grow by attracting construction and investments to the region, growth that's attributed to an improved market, favorable operating costs, low unionization, a large pool of skilled workers, and the ease of access to the South Carolina Inland Port (SCIP) located in Greer, South Carolina.
More major companies have settled automotive suppliers in the area. Last year, BMW Manufacturing decided to relocate its export operations to property under the ownership of the Greenville-Spartanburg International Airport and it now uses a new 413,000-square-foot facility.
There also has been a strong response to the activity level in upstate South Carolina. The total vacancy rate for flex and industrial space stood at 7.9 percent at the end of the first quarter for 2015, a decrease from 8.4 percent last year. In addition, the market has shown more than 90 percent occupancy for more than three years.
A need for more space has triggered new construction projects in the area, including speculative and build-to-suit sites. Higher market rental rates have urged developers to create new sites as the gap for new industrial space and market rates has decreased, opening space for new tenants.