Suburban Greenville Office Market
by Brent Freeman

One trend in the Greenville office market, according to Brent Freeman, office leasing and sales specialist at Colliers Keenan Goldsmith, is continued new construction in the suburbs. Several speculative Class A buildings are under construction as well as a 192,000-square-foot build-to-suit for Verizon, all in the suburbs. Freeman also notes that Greenville has a high concentration of engineering firms that have growing and shrinking work forces as they respond to individual contracts for jobs. “Compared to other markets, the Greenville market tends to have more sublease space as the engineering firms respond to changes in workloads,” says Freeman. “I am also seeing a lot of interest in the area for call centers with Ford Motor Credit locating a 83,000-square-foot call center in Greenville during 1999.” Freeman adds that the Central Business District continues to experience re-development.

Significant developments include Liberty Property Trust’s two speculative buildings totaling 68,600 square feet that are under construction at Independence Point in the suburbs. Ground was broken recently on a speculative 105,000-square-foot, five-story tech office building called Bonaventure II @ Verdae Technology Park with completion scheduled for the fourth quarter of 2001. A new development group closed on the property formerly known as The Tradeport Building at The Point in the first quarter of 2001. The previous owner experienced financial problems in attempting to convert an old manufacturing facility into office uses, according to Freeman. The new development group reportedly has the resources to complete the project. “With its location at the intersection of Interstate 85 and Woodruff Road, this development could add 500,000 square feet of high tech office space to the suburban market over the next 18 months,” says Freeman.

The majority of the development is taking place in the suburbs along I-85 and I-385. The main reasons for this are the ease of access offered by the interstates as well as the availability of land.

Verizon has recently agreed to move a regional office and call center into a build-to-suit at Brookfield Corporate Center, a suburban office park. The company has just signed a lease in this 192,000-square-foot building and it is currently under construction. Verizon will move out of approximately 50,000 square feet of another suburban office park. Met Life has just signed a lease for 80,000 square feet of a 120,000-square-foot building also under construction in Brookfield Corporate Center. Day and Zimmerman, an engineering firm, has just signed a lease for approximately 50,000 square feet at Parkway Plaza, a 125,000 square foot office building in the suburbs.

Class A rental rates in Greenville’s central business district range from $17.50 to $20 per square foot. In suburban areas, rates range from $16.50 to $18.50 per square foot. Total market direct vacancy (not including sublease space) is 14 percent. Total market vacancy including sublease space is 19 percent. CBD Direct Vacancy (not including sublease space) is 14 percent, and including sublease space, it is 17 percent. Suburban direct vacancy (not including sublease space) is 15 percent, and including sublease space, it is 21 percent.

Freeman also notes that, in the suburbs, Brookfield Corporate Center is Greenville County’ s largest office park, but with the Met Life and Verizon buildings underway, it has little property left. “Look for new office development along I-385 between I-385 and the recently opened Southern Connector,” says Freeman. The Southern Connector links I-385 to I-85 south of Greenville. “In the long term, look for a new high rise in the CBD when tenants can be secured,” adds Freeman.

There has been a great deal of new construction in the suburbs over the past three years. According to Freeman, construction should slow to allow the market to absorb the new space coming on line this year.


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