Greenville-Spartanburg Industrial Figures Q2 2026

The industrial market posted 2.4 million sq. ft. of positive net absorption in Q2 2026, up 6.3% from the prior quarter, while vacancy declined 80 basis points to 5.3%. Availability also tightened to 9.2%, down 240 basis points year-over-year. Limited new vacant space entered the market during the quarter, helping support declining vacancy. Much of the positive absorption was driven by occupancies of existing vacant Class A space, including BMW’s 918,000-sq.-ft. lease in Spartanburg West, which backfilled former DHL space, and Sunvia’s 621,000-sq.-ft. lease in Laurens. Detmold Group also signed 175,000 sq. ft. in Spartanburg West. New-to-market demand increased, particularly from owner-users, which played a key role in reducing vacancy. Manufacturing activity remains especially strong across the market.

Construction activity continued to be moderate, with 2.1 million sq. ft. underway, down 12.3% quarter-over-quarter and 42.1% year-over-year. Deliveries totaled 798,000 sq. ft., a 63.7% decline from Q1. While the development pipeline has contracted, select projects continue to move forward, including a 130,000 sq. ft. built-to-suit facility by SunCap that broke ground during the quarter and a roughly 720,000 sq. ft. expansion project that remains on track for completion by year-end.