In my last blog, I covered how commercial real estate in Spartanburg is performing compared to average US commercial real estate trends. You can read my previous blog here
As 2023 is coming to a close, here is a review of how each major asset class has performed so far this year in Spartanburg, S.C.
How CRE Has Performed This Year in Spartanburg
|Multi Family||2023||Up/Down from 2022|
|Sales Volume (Past 12 months)||260M||Up|
|Under Construction (units)||853||Down|
|Rent Growth (past 12 months)||2%||Down|
|Average Sales Price (unit)||$145,000||Down|
As a large wave of inventory hit the market in the past few years, multi family needs some time to absorb. Although current vacancy rates are slightly lower than 2022 vacancy rates, the 12 month rent growth has remained relatively low at 2%.
The sales volume has been higher in 2023 compared to 2022, but overall, these projects were traded at a higher cap rate. You can read my blog on cap rates here
|Office||2023||Up/Down from 2022|
|Sales Volume (Past 12 months)||$37.7M||Down|
|Under Construction (SQ FT)||3.2K||Down|
|Rent Growth (past 12 months)||2.1%||Down|
|Average Sales Price (SQ FT)||$118||Down|
The office market is doing decently well in Spartanburg compared to several other US markets, but overall, office trends are down compared to 2022.
The vacancy rate of 4.1% is relatively strong; vacancy has actually trended downward relative to 2022.
|Industrial||2023||Up/Down from 2022|
|Sales Volume (Past 12 months)||$171M||Down|
|Under Construction (SQ FT)||$7.7M||Down|
|Rent Growth (past 12 months)||9.6%||Down|
|Average Sales Price (SQ FT)||$65||Up|
Industrial real estate has not performed as strongly in 2023 compared to the prior year. However, it is interesting to note that average sales price per square foot has continued to climb over the past few years. Industrial real estate trends are discussed in more detail in my previous blog you can read here
|Retail||2023||Up/Down from 2022|
|Sales Volume (Past 12 months)||$118M||Down|
|Under Construction (SQ FT)||66.7K||Down|
|Rent Growth (past 12 months)||4.5%||Down|
|Average Sales Price (SQ FT)||$127||Up|
Retail trends have trended downward in 2023, with the exception of the average price per square foot which is slightly higher in 2023 than the previous year. However, 4.3% is relatively low vacancy.
It is important to remember that 2021 and 2022 were record years for several asset classes.
Although overall the 2023 data is trending downward compared to the previous year, there are sectors of real estate in Spartanburg that have remained robust.
Did you find this blog helpful? Have questions?
McDaniel and Company, VP
Source: Costar Data