Greenville, South Carolina, October 22, 2025
News Summary
The Greenville-Spartanburg industrial market is witnessing a significant increase in leasing activity, with over 11 million square feet leased in the past year, leading to a reduction in available industrial space. A projected shortage may arise by 2027 if new industrial construction does not keep pace with demand. The automotive and aerospace sectors are particularly active with significant investments in the region. Concerns regarding workforce readiness and rising rental rates are also being discussed as factors affecting future growth.
Greenville, South Carolina Faces Potential Industrial Real Estate Shortage by 2027
As the industrial market in Upstate South Carolina heats up, a projected shortage of industrial real estate looms on the horizon. Colliers International has reported that the region is on track for a record year regarding leasing activity, with the Greenville-Spartanburg industrial market seeing over 11 million square feet leased in the past year, a staggering 45% increase compared to the previous year.
Currently, despite a total industrial space inventory exceeding a quarter of a billion square feet, the vacancy rate has fallen to 7.11%, down over 4 percentage points from the previous year. This indicates that available warehouse spaces are diminishing rapidly. A recent listing for lease at a warehouse located at 105 Wood St., strategically situated between White Horse Road and downtown Greenville, exemplifies this trend.
The demand for industrial spaces continues to surge, but new industrial construction is failing to keep pace. As this mismatch between supply and demand continues, the potential for an industrial real estate shortage becomes more pronounced, with forecasts suggesting challenges as early as 2027.
The automotive and aerospace sectors in the region have been particularly active. Colorado-based aerospace manufacturer Woodward Inc. has announced plans to build a $200 million plant in Spartanburg County, while German auto parts maker ZF Foxconn Chassis Modules is investing $55.4 million in expanding its operations, highlighting the region’s attractiveness to major manufacturers.
Amidst these developments, industry leaders have raised concerns regarding workforce readiness in South Carolina. The impact of rising rental and property tax rates is also a focus, with discussions emphasizing its potential effects on tenant stability and overall investor attraction.
The Upstate’s commercial real estate market is responding actively to this growing demand, particularly within the industrial and automotive manufacturing sectors. However, unless new construction can accelerate to meet the rising demand, the region may see significant challenges in the coming years.
As the area gears up for potential growth and change, other local initiatives are also drawing attention. Melissa Vandermey, a Greenville native, has been appointed as the executive director for the Taylors Free Medical Clinic, where she will be overseeing daily operations and community relations efforts. Additionally, Broadstreet Global, a private equity firm in Greenville, recently hosted its fourth annual Charity Classic flag football tournament, raising $100,000 for Habitat for Humanity of Greenville County and Shriners Children’s Greenville. These efforts continue to emphasize the community’s commitment to both economic and social well-being.
The weather forecast for the region is mainly sunny, with a high of 72°F and winds from the west at 10-15 mph, cooling down to a low of 42°F with clear skies later at night.
Key Insights
- Industrial Leasing Growth: The Greenville-Spartanburg industrial market recorded over 11 million square feet of leasing activity last year.
- Vacancy Rate: The vacancy rate has decreased to 7.11%, showing a significant shrinkage in available industrial space.
- Major Investments: Woodward Inc. plans to invest $200 million, while ZF Foxconn Chassis Modules is expanding by $55.4 million.
- Future Concerns: Workforce readiness and rising rental/property tax rates could impact growth and stability.
Forecast Summary
Mainly sunny skies with a high of 72°F and a low of 42°F accompanied by a light wind. Ideal for outdoor activities and business environment assessments.
FAQ
What is the projected industrial real estate situation in Upstate South Carolina?
The availability of warehouse spaces in the Upstate is diminishing, leading to a potential industrial real estate shortage by 2027.
How much leasing activity has the Greenville-Spartanburg industrial market experienced?
The Greenville-Spartanburg industrial market experienced over 11 million square feet of leasing activity in the last year, a 45% increase compared to the previous year.
What is the current vacancy rate for industrial space in the Upstate?
Despite a total industrial space inventory exceeding a quarter of a billion square feet, the vacancy rate has dropped to 7.11%, down over 4 percentage points year-over-year.
What major investments are being made in the Upstate’s industrial sectors?
Colorado-based aerospace manufacturer Woodward Inc. announced plans to build a $200 million plant in Spartanburg County, and German auto parts maker ZF Foxconn Chassis Modules revealed a $55.4 million expansion in Spartanburg County.
Key Features Overview
| Feature | Details |
|---|---|
| Projected Shortage | Potential industrial real estate shortage by 2027 |
| Leasing Activity | Over 11 million square feet leased, 45% increase from last year |
| Current Vacancy Rate | 7.11%, down over 4 percentage points |
| Major Investments | Woodward Inc.: $200 million plant; ZF Foxconn: $55.4 million expansion |
| Future Concerns | Workforce readiness and rising rental/property tax rates |
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Additional Resources
- Post and Courier: Greenville-Spartanburg Industrial Report
- Colliers: 2025 Q2 Greenville-Spartanburg Industrial Report
- Greenville Business Magazine: Commercial Real Estate in South Carolina
- Upstate Business Journal: Notable Commercial Real Estate Transactions
- Wikipedia: Industrial Real Estate
Author: STAFF HERE GREENVILLE
The HERE Greenville Staff Writers are a collaborative team of journalists, editors, and local contributors passionate about delivering accurate, timely information to the Greenville community. As part of the HEREcity.com Network, which powers over 100 U.S. city sites including HEREcolumbia.com, our staff draws on collective experience in South Carolina journalism to cover everything from business sales and real estate developments to dining deals and community initiatives. Our Expertise and Background Local Roots in Greenville Our team includes lifelong Greenville residents and SC natives with deep knowledge of the area’s history, economy, and culture. We’ve covered key events like the recent sales in the Heritage Historic District 17 , Greenville’s textile and railroad heritage 2 , and growth in local education sectors (e.g., Greenville Technical College programs) 27 . Collective Experience With over 50 combined years in journalism, our staff has backgrounds in print, digital media, and community reporting. We prioritize fact-based stories, drawing from sources like the Greenville Chamber of Commerce, city government records, and on-the-ground interviews. Commitment to Quality Every article is a group effort, involving research, editing, and verification to ensure reliability. We adhere to journalistic standards, citing credible sources and updating content as new details emerge.
