How are companies trying to coax workers to leave their home offices? By loading up on premium-class office space with lots of amenities, the type of commercial real estate that’s far more difficult to find in downtown Greenville than it was a year ago.

The Class A office vacancy rate in Greenville’s central business district was 7.68 percent in the second quarter of 2022, according to a report from the commercial real estate firm Colliers South Carolina. The office vacancy rate in downtown Greenville has seemed to stabilize over the past three quarters after falling to 13.21 percent in the second quarter of 2021, as the work-from-home movement gained steam in the wake of the coronavirus pandemic.

That rebound is also evident in absorption—the rate of companies moving in versus moving out—which stood at positive 94,000 square feet in the second quarter of 2022 following two quarters of negative activity. Downtown Grenville is now lacking large Class A office options as tenants jostle for premium spaces to enhance employee retention, Colliers reported.

“Rental rates are rising due to increasing construction costs and a lack of available space,” the report stated. “While tenant improvement allowances are still offered, other concessions are more limited. Tenants are advised to renew leases early to secure office space at least one year in advance of their next lease expiration date.”

The average lease rate for Class A office space in downtown Greenville was $27.61 per square foot as of the second quarter. Downtown Greenville had a total vacancy rate of 18.02 percent, most of that in Class B office space. In Spartanburg County, the second-quarter vacancy rate was 8.88 percent, and landlords were asking an average of $27.61 per square foot in rent.

Although the market had 155,000 square feet of office space under construction as of the second quarter of 2022, “there are currently no major downtown office developments under construction, and very few on the horizon with the cost of construction not supported by current rental rates,” Colliers reported. Rising interest rates are also causing apprehension and a slowdown in capital market activity, the report added.

Earle Furman aids in Landmark sale

The Greenville commercial real estate firm NAI Earle Furman represented the buyer in the recent sale of downtown Greenville’s tallest building, and will also oversee leasing and property management for the 25-story office tower at the corner of Main and College streets.

NAI Earle Furman brokers Keith Jones, McNeil Epps, Jake Van Gieson and Gaston Albergotti represented the buyer of the 305-foot Landmark Building, purchased by a Greenville-based investment group led by CAPA Management. The edifice was sold by Tower on Main LLC of Columbia. The leasing and property management accounts for the 331,000-square-foot building are among the biggest in the history of NAI Earle Furman, according to the firm.

Conceived by Charles E. Daniel as the headquarters for his construction company, the skyscraper first known as the Daniel Building signaled the arrival of the modern office tower in South Carolina. It was the tallest building in the state at the time of its completion in 1966, and Daniel Construction occupied five full floors for many years. The buyer is planning significant reinvestment of the building, according to NAI Earle Furman.

Café lease among Caine transactions

The lease of a Tropical Smoothie Café in Spartanburg and an H&R Block location in Greenville highlighted recent transactions announced by the Upstate commercial real estate firm Coldwell Banker Commercial Caine.

Pete Brett represented Summit 26 LLC, doing business as Tropical Smoothie Café, in the leasing of a 2,100-square-foot retail space at Hillcrest Market Place, 1905 East Main St. in Spartanburg, from ERP Hillcrest LLC. Sammy DuBose represented Verdae Properties in lease renewal negotiations with tenant H&R Block Eastern Enterprises for a 2,000-square-foot retail space at Market Place Shopping Center, 2445-B Laurens Road in Greenville.

On the sales front, T Cox represented Apogee Properties in the purchase of .29 acres at 1072, 1074, 1076 and 1078 Otis Blvd. in Spartanburg from Red Pony Enterprises. In Mauldin, Rick Cauthen represented DLP Holdings in the purchase of .70 acres located at East Butler Professional Park, 108 Professional Court, from Butler Avenue Associates.

In other leasing activity, Nicholas Sardone and DuBose represented landlord 200 East Broad LLC in the leasing of an additional 4,510 square feet of office space at 200 E. Broad St., Suite 260, in Greenville to Treatment Centers Holdco. Also in Greenville, Harry Croxton represented H & J Interests LLC in the leasing of a 1,364-square-foot office space at 104 W. Broad St. to Olam Agri Americas.

Also, Brett represented landlord Fairway Lane in lease renewal negotiations with Success Mortgage Partners for a 1,750-square-foot office space at 408-A North Church St. in Greenville.

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Joyner welcomes eight new agents

Berkshire Hathaway HomeServices C. Dan Joyner Realtors welcomed eight new agents to highlight recent staff additions at Upstate real estate firms.

C. Dan Joyner added Alaina Demarco, Brandy Harrison and Ashley Martin to its Woodruff at Five Forks office; Wanda Alexander and Tom Owens to its Pelham Road branch; Jessica Moss to its Augusta Road location; Christopher Knox to its Midtown office; and Erica Hardwick to its commercial division.

Elsewhere, the commercial agency NAI Earle Furman added four new associates in financial analyst Max Hoffman, administrative coordinator Leah Tompkins, property manager Rick Habich and senior property manager Cal Collins.

Collins has over 25 years of experience in commercial property management and is responsible for managing the newly acquired Landmark Building in Greenville along with several other downtown commercial properties. Habich is responsible for managing a large portfolio of retail, office, and industrial properties. Hoffman assists in building financial models and forecasts, and Tompkins provides administrative support in the retail, single-family and multifamily investment sales division.

Multifamily sale tops Earle Furman deals

The sale of a 361,548-square-foot multifamily property in Greer highlighted recent transactions announced by the commercial real estate firm NAI Earle Furman.

Kay Kill, Bern DuPree and Trey Snellings of Furman Capital Advisors, the investment services and capital markets division of NAI Earle Furman, represented the seller Greer Investments LTD in the sale of a the multifamily property at 1102 West Poinsett St. in Greer. Also, John Powell represented the seller in the sale of 71.8 acres on Highway 81 North to Anderson Land LLC.

In Boiling Springs, Stuart Smith represented Davenport Investments in the sale of a 15,100-square-foot industrial space at 9091 Asheville Highway to Congaree Bluff Farm LLC. In Clinton and Newberry, Robert Schmidt and Peter Couchell of Furman Capital Advisors represented the seller in the sale of a 39,397-square-foot multitenant office portfolio at 100-800 Plaza Circle and 2541 Evans St.

In Spartanburg, Geoff Beans represented seller Chesnee Highway 221 LLC in the sale of a 47,450-square-foot retail building at 2240 Chesnee Highway to buyer Hwy 221 Storage LLC, which was represented by Chris Harrison of NAI Earle Furman. In Greenville, John Baldwin represented seller BRE, LLC in the sale of a 45,914-square-foot industrial building at 50 Commerce Center to Chesnee Highway 221 LLC represented by Hunter Garrett and John Staunton.

In Anderson, Baldwin and Alex Campbell represented buyer RGolden Eastside Holdings LLC in the purchase of a 10,000-square-foot industrial building at 3621 Highway 29 South. In Greenville, Jake Van Gieson represented buyer Buttered Popcorn LLC in the purchase of a 59,830-square-foot retail building at 60 East Antrim Drive from seller JDL Holdings.

In Pauline, Dallas Wright represented buyer Dutchman Creek Farms in the purchase of 98 acres of land on Fields Road. In Gaffney, Alex Campbell, Dallas Wright and Michael Short represented the buyer in the purchase of 58. acres of land on Grassy Pond Road. In Simpsonville, Couchell and Schmidt represented the seller in the sale of a 55,000-square-foot Hobby Lobby leasehold at 714 Fairview Road.

On the leasing front, John Powell represented landlord DIV LLC in leasing a 1,216-square-foot retail space at 1276 Eighteen Mile Road in Central to Off the Block Physical Therapy. In Greenville, Keith Jones and McNeil Epps represented the landlord 135 South Main Street LLC in leasing a 6,951-square-foot office space at 135 South Main Street to Beacon Pointe Advisors.

In Duncan, Hal Johnson III represented tenant AFL in leasing a 143,119-square-foot industrial space at 104 Hidden Lake Circle from Sealy and Company. In Greenville, Jones, Epps and Garrett represented landlord 135 South Main Street LLC in leasing a 1,063-square-foot office space at 135 South Main St. to Waters Development Corporation.

In Fountain Inn, Grice Hunt, Clay Williams III and Will Coker represented the landlord in leasing a 306,692-square-foot industrial building at 200 Francis Marion Way. In Greenville, Jones and Epps represented the landlord in leasing a 5,000-square-foot retail space at 5216 Pelham Road to QuikTrip Corporation, and also represented Gower Corporation in leasing a 1,472-square-foot office space at 355 Woodruff Road to HomeCraft Builders.

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Topics #developer #Real Estate #Real Estate Agency #Real Estate Biz #Real Estate Sale