Spartanburg Industrial: The BMW Corridor and Beyond

You can’t talk about Spartanburg industrial without talking about BMW. I know that’s obvious. But honestly, I don’t think most people understand just how big the ripple effect is.

BMW’s Greer plant is the largest BMW factory in the world. Eleven thousand employees. They just committed $1.7 billion to retool for EV production. And here’s the number that really matters — $26.7 billion in total economic impact to South Carolina. That’s not just the plant. That’s the 40-plus suppliers, the logistics companies, the service providers, all of it rolling into one massive ecosystem.

The supplier corridor

Drive along I-85 between Spartanburg and Greenville and you’ll see it. Supplier after supplier after supplier. These companies need buildings. Not massive 500,000 SF distribution centers — they need 15,000 to 80,000 SF manufacturing and assembly spaces. Close to the plant, close to the interstate, with three-phase power and dock loading.

That’s exactly the kind of industrial property in Spartanburg that I buy. And the demand for it isn’t slowing down. BMW’s EV transition means new suppliers are setting up shop. Different battery components, different thermal management systems, different materials, different assembly processes. All of them need space somewhere along the I-85 corridor. The supply chain is literally being rebuilt from the ground up, and it’s happening right here in the Upstate. If you owned an industrial building here five years ago, it was valuable. Today, with the EV retooling creating this new wave of supplier demand, it’s probably worth more than you think.

Beyond BMW

Look, BMW is the anchor. But Spartanburg’s industrial base is broader than people think. Michelin has over 3,000 employees here. Milliken is headquartered in Spartanburg. Spartanburg Regional Healthcare employs 6,000-plus. These aren’t industrial tenants directly, but their employees create demand for everything else — the contractors, the service companies, the supply chain businesses that fill up flex buildings and small industrial bays.

I talked to a guy last year who owned a 25,000 SF industrial building near the BMW plant. He’d held it since 2008. Bought it during the recession for around $650K. His tenant was a tier-two BMW supplier on a five-year lease. The building was worth roughly $2.2M based on the income. He hadn’t even realized how much it had appreciated because the rent checks just kept coming. That’s a story I hear over and over again in this corridor.

What I’m looking for

Industrial buildings between 10,000 and 100,000 SF along the I-85 corridor. Leased or vacant — doesn’t matter. I price vacant buildings based on what they’ll stabilize at, minus my carrying costs and TI budget. Leased buildings I underwrite off the actual rent roll. No fantasy pro formas. No “projected” rents. What’s the building actually doing right now — that’s what I pay on.

Ceiling height, loading, and power are the big three. Anything over 18 feet clear with dock-high doors and three-phase power is in high demand. Under 14 feet clear with just grade-level access? Still buyable, just a different price. I’ve bought plenty of older buildings with 14-foot ceilings that work great for certain tenants. But the premium product gets premium pricing.

The condition of the building isn’t a dealbreaker for me. Roof needs replacing? I’ll price $8-12/SF for that. Parking lot is shot? Another $4-6/SF. I just need to know about it upfront so the numbers work for both of us. I’d rather deal with a property that needs $150K in work at a fair price than a perfect building at a stretched price. Imperfect buildings are where value gets created.

For more on how BMW shapes this market, read my Spartanburg market report on BMW’s EV bet.

Own an industrial building in the Spartanburg area? I’d like to hear about it. 704-600-3839.