The Greenville/Spartanburg, South Carolina, industrial market has experienced a general slowdown over the past 2 years due to massive plant closings and layoffs. Estimates for job losses total 8,633 for Greenville and Spartanburg counties for 2001 and thus far in 2002, according to the SC Appalachian Council of Governments, InfoMentum Decision Support System.

Exceptions to this trend include several hot spots in the area, including The Matrix in southern Greenville County and the BMW manufacturing facility in Greer, halfway between Greenville and Spartanburg.

“A major announcement from BMW came on September 26,” says Hara Knight, client services and research manager for Grubb & Ellis|The Furman Company in Greenville. “At its Greer plant, the German automotive giant is investing $400 million in equipment and tooling, along with the creation of 400 new jobs.”

“Since announcing its Upstate South Carolina plant in June 1992, BMW has invested more than $1.9 billion and created 4,400 jobs,” adds Brad Thomas, president of Spartanburg-based Brad Thomas Properties and managing member of Spartan Realty Fund. “This does not include the 33 suppliers that have followed BMW to date. BMW currently produces 16 percent of its parent company’s worldwide numbers in South Carolina. With 20 new models projected over the next 6 years, there is a lot of speculation regarding new suppliers.”

Clemson University also announced the establishment of a major automotive research park in Greenville that will include a $40 million to $50 million wind tunnel, a graduate program for automotive engineering, a tire and wheel testing laboratory, and a 3-mile test track. “BMW has committed $10 million in gifts to Clemson to assist in the establishment of the graduate program,” says Knight. “Those involved with these plans project that this development could make Greenville/Spartanburg a major automotive research and manufacturing hub in the Southeast, and that the park may eventually employ 20,000 people.” The South Carolina Infrastructure Bank recently committed $12 million to begin road improvements. The park will be located on land owned by the estate of the late John B. Hollingsworth. Clemson is working with Florida developer Cliff Rosen of Cliff Rosen & Associates.

Another new development of note is The Matrix, a business and technology park, located on the recently completed Interstate 185 Southern Connector. This newly developed industrial park has opened up 1,400 acres of Class A industrial land. The park has a special industrial zoning classification that is designed for clean industry and is subject to covenants and restrictions. Current tenants include Toyoda Koki and Grammer Industries. An investment group will build an 84,000-square-foot speculative building at The Matrix. The building will be expandable to twice its size.

A newcomer to Greenville/Spartanburg is Unit 8, a Scottish company that has established its first U.S. operations in Greenville. Gates Rubber Company now employs 50 people in a 25,500-square-foot building on Pelham Road in Greenville. Essig Tool & Die, an engineering services company with locations in Cincinnati and Mexico, is making a $650,000 investment in Greenville. The company will locate in Donaldson Center, employing 50 people.

The range for rental rates in the Greenville/Spartanburg area as of second quarter 2002 was $4 to $8 for general industrial space; $2 to $4 for warehouse space; and for R&D/flex space, rates range from $2.50 to $4.50 for warehouse and $4.50 to $10 for office. Vacancy rates were 8.6 percent for general industrial, 19.1 percent for R&D/flex and 14.9 percent for warehouse space.

Hara Knight is the client services and research manager of Grubb & Ellis/The Furman Company.


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