I’ll be honest, the Greenville–Spartanburg corridor doesn’t get the attention it deserves. Everyone talks about Charlotte and Raleigh. But if you look at what’s actually happening with industrial demand along I-85 between GSP airport and Greer, it’s hard to argue there’s a better market for small-bay owners in the Southeast right now.
-
Proximity to BMW and Suppliers: Closer to BMW Spartanburg facilities or major supplier clusters gets better cap rates. Distance softens the market. -
Tenant Type and Duration: Supply chain tenants (logistics, parts storage, light manufacturing) are stickier than general commercial. Lease duration matters — 3+ years is premium. -
Flex vs. Industrial Positioning: If you own flex, emphasize the small-bay, roll-up door setup. Flex is hotter than traditional industrial in this market. -
New Supply Impact: Know if new competitive industrial is under development nearby. Supply pressure from new parks will soften rents in 18-24 months. -
Interstate Access: I-85 access and visibility matter. Buildings tucked away from major corridors face 0.5+ cap rate penalty.
It’s not just BMW
BMW is the anchor. Everyone knows that. But it’s not just BMW. It’s the entire supply chain that feeds them. Plus Michelin. Plus the food processing cluster around Greenville. Plus all the logistics and distribution that follows when a region gets to a certain critical mass of manufacturing.
Greenville-Spartanburg industrial market strength
The corridor’s supply chain demand makes this one of the strongest industrial markets in the Southeast.
- Is your building within 10 miles of BMW Spartanburg or major Michelin facilities?
- Do your tenants support manufacturing or logistics (supply chain)?
- Is the building small-bay flex or traditional industrial?
- Do you have 2+ year lease terms with supply chain tenants?
- Is the property on or near I-85 with good visibility?
And then there’s the service economy that supports all of it. Industrial and flex buildings in the Greenville-Spartanburg area are packed with HVAC contractors, electricians, plumbers, welding shops, small fabricators. These are the businesses that keep everything running. And they all need space.
I bought a small flex park in Duncan a couple years ago. Eight units, about 2,000 SF each. Paid in the $90s per foot. When I bought it the rents were around $7 NNN. Today those same units are leasing at $9.50-10 NNN. That’s 35%+ rent growth in two years. The tenant demand has been relentless.
The seller profile I see
A lot of owners have had their buildings since the ’90s or early 2000s. They bought when the Upstate was still finding its identity. Before BMW really transformed the region. Before Greenville’s downtown turned into what it is now. These owners are sitting on buildings worth three or four times what they paid. And many of them are approaching retirement.
Related: Top Employers in Spartanburg County: The BMW Effect
The conversation usually goes something like this: “I know my building is worth something. I just don’t want to deal with listing it and showing it and having people poke around for three months.” Which is exactly where I come in. No listing. No tire-kickers. I look at the numbers, name a price, and if it works we close in 30-45 days.
What to watch for
The new flex construction happening near CU-ICAR and along Pelham Road is going to create some competition for tenants down the road. Not today. Rents on new construction are $13-16 NNN, which is well above what most existing buildings charge. But as that gap narrows over time, tenants will start weighing the upgrade. If you’ve been thinking about selling, the window where older product trades at strong multiples is right now.
The tax situation in Greenville County has also changed. Reassessments hit some commercial owners hard. If your tax bill jumped 25-30% and your leases don’t have strong NNN pass-throughs, your NOI took a real hit. Worth factoring that into your decision.
Seller takeaway
If you own industrial or flex space in Greenville-Spartanburg, the supply chain demand is creating peak market conditions. Call Roth Capital at 704-600-3839 for a current valuation. Market momentum won’t last forever.
Got a building along the I-85 corridor? Give me a call. I’d love to take a look. 704-600-3839.
Ready to explore your options?
Tell us about your property. We will follow up within one business day.
Recent Comments