GSA Daily Staff Report
Published Sept. 21, 2010

Vacant office space available from landlords, plus sublease space, is at 17.2% in Greenville, according to a recently released mid-year report from Spectrum Commercial Properties.

The vacancy rate alone in Greenville is 12.3%, below the 12.9% national rate reported by CoStar Group Inc.

“Most consider the vitality of Class A space to be the true barometer of the office market,” said the report. “The overall Class A availability rate was 20.4%, with the CBD (central business district) availability rate being 17%, while the suburban Class A availability rate was 21.7%.”

That 20.4% may be a mixed blessing for the office market with three major Class A buildings on the market that could accommodate a corporate or regional headquarters, or a major call center, the report said.

The South Financial Group Inc.’s corporate campus totals 227,000 square feet between two buildings. The former Ahold Information Center is also available in the Brookfield Office Park.

“In the years prior to the recession, the Greenville office market can be characterized by very little migration from outside the market and existing companies moving within the market,” the report said. “The recession has placed a strain on all companies and most have been in a holding pattern which has also resulted in companies staying put in order to weather the storm.”

The total Class A average asking rate is $21.04 per square foot. In the CBD, it’s currently $19. In the suburban market it is $22.62 per square foot.

However, including all types of office space, the average is less in the suburban market ($14.46) compared to the CBD ($16.22), according to Spectrum’s report.