Q1 2026 Market Outlooks
Industrial
Q1 2026 was a great quarter for the Greenville-Spartanburg industrial market, and honestly, it’s hard not to be excited about where things are headed. Vacancy dropped to 6.3% and we absorbed over 3.2 million square feet, which reflects real, meaningful demand from manufacturers, distributors, and logistics users who continue to choose the Upstate. What stood out most this quarter was Spartanburg. A year ago we were talking about oversupply there, and now vacancy has fallen from over 10% to under 8% in just a few months. The market corrected faster than most people expected. Rents are climbing, availability is shrinking, and the new construction pipeline isn’t keeping pace with demand. That’s a landlord’s market developing in real time. The Upstate has always had strong fundamentals: the interstate access, the inland port, the workforce, the BMW effect. Right now the market data is catching up to what we’ve known about this region for a long time. (Associate Josh Kenyon)
READ FULL INDUSTRIAL REPORT HERE
Office
Greenville’s office market continues to demonstrate strong fundamentals as we close out Q1 2026. Vacancy remains relatively tight at just over 7%, signaling sustained tenant demand despite the broader negative outlook for the office asset class in larger markets nationwide. With inventory growth still limited and new construction deliveries delayed, limited availability will not ease pressure on the market. As a result, we are continuing to see upward movement in rental rates, with landlords maintaining pricing power across well-located, quality assets. Unless there is a meaningful shift in supply, this dynamic should support further rent growth through the remainder of the year. (Associate Chrestman Rainey)
Retail
The Upstate of South Carolina rolls into Q1 2026 as one of the hottest markets, across all sectors, in the State. In particular, the retail sector has seen an uptick in activity. The continued demand of residential is one of the biggest factors helping drive the retail growth. Greenville Metro now has over 1 Million people and Spartanburg County sees roughly 30 people per day moving in. Retail developers see the need, and the community benefits from developments with grocers, restaurants, and other retailers. These developments are receiving national attention and Landlords are seeing competing lease offers. Tenants, Landlords, and Investors should keep an eye on all the possibilities that 2026 will offer. (Senior Associate Mike Tanbonliong II)
