Greenville-Spartanburg Industrial Figures Q1 2026

The market in Q1 2026 recorded a sharp rebound in positive absorption alongside generally tighter conditions on a year-over-year basis. Net absorption rose from the previous quarter to 1.9 million sq. ft., bringing absorption back onto its average trajectory of roughly 7 million sq. ft. a year, after showing a slower than normal pace in Q4 2025. Vacancy was 6.3%, edging up 10 basis points (bps) from Q4 2025 but standing 170 bps points below the 8.0% rate in Q1 2025. Availability showed a clearer improvement, falling to 10.0% from 10.8% in the prior quarter and 12.1% a year earlier, after completing more than 3.8 million sq. ft. of new leasing transactions, with Spartanburg West leading all submarkets at 3.5 million sq. ft. of positive net leasing. 

New supply increased significantly, with deliveries reaching 2.2 million sq. ft., supported by 10 completed properties. Deliveries consisted of nearly 1.2 million sq. ft of build-to-suit activity and nearly 1 million sq. ft. of speculative construction. At the same time, the construction pipeline continued to contract to 2.4 million sq. ft., down 29.6% from Q4 2025 and 25.0% below its level in Q1 2025. Average asking rents eased 1.9% from the prior quarter to $6.19 per sq. ft. but remained 3.7% above Q1 2025 and 28.9% higher than in Q1 2023, indicating that pricing stayed well above recent years even as landlords adjusted modestly quarter-over-quarter.