Q2 2026 Market Outlooks
Industrial
The Upstate industrial market posted another strong quarter, recording over 3.5 million SF of positive absorption in Q2. Notably, nearly 2 million SF of that total came from new construction deliveries — a clear signal that tenants continue to gravitate toward modern, functional product as it hits the market. One of the more interesting shifts this quarter has been at the smaller end of the size spectrum. Leasing activity in the sub-50,000 SF bucket has heated up considerably, and developers have taken notice. We’re seeing more capital and attention turn toward multi-tenant light industrial product — a segment that has historically been underbuilt in the Greenville/Spartanburg market relative to demand. As vacancy numbers begin to tighten, we expect the next wave of development to follow. Look for developers to put shovels in the ground on more traditional rear-load product — buildings in the 260’–300’ depth range — that can serve the broad middle of the market. The fundamentals here remain sound: steady absorption, disciplined new supply, and tenant demand that continues to reward well-located, well-designed product. (Senior Associate Will Coker)
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Office
The Greenville office market has continued to show solid momentum throughout the second quarter. Market-wide asking lease rates are now averaging around $27.00 per square foot, while the CBD continues to lead the way with average asking rates sitting south of $35.00 per square foot. Companies continue to place a premium on being downtown, and with very little new office product being delivered, quality space remains in short supply. We’re also seeing activity from a healthy mix of local businesses, regional firms, and companies expanding into the Upstate, which speaks to the strength of Greenville’s business community. While the national office conversation is still mixed, Greenville continues to outperform many comparable and nearby markets thanks to strong fundamentals, steady tenant demand, and a growing business community. As we head into the second half of the year, we’re encouraged by the momentum we’ve seen and are excited to see how the market continues to perform as demand remains strong and new supply stays limited. (Associate Will Williamson)
Retail
The commercial real estate market in the Upstate remained resilient through Q2 2026, supported by strong population growth, manufacturing investment, and continued business expansion. Leasing activity remains healthy across most sectors, while elevated interest rates have slowed down investment sales. Retail continues to lead the market, with low vacancy and steady rent growth, particularly in Greenville, Greer, and Spartanburg. Industrial demand has normalized following significant new development but remains supported by the region’s manufacturing and logistics base, including a $1 Billion manufacturing investment in Blacksburg. The office market continues to outperform national trends. Limited new construction and steady tenant demand have kept vacancy relatively low. Older office buildings remain competitive by offering updated space, tenant improvements, and flexible lease terms. Overall, the Upstate’s strong economic fundamentals and disciplined development continue to position the market for long-term stability, led by the increasing population that now exceeds over a million residents. (Associate Grayson Atkins)
