Economy
Greenville-Spartanburg continued to rank among the nation's fastest-growing metros, with nonfarm employment increasing by 1.7% year-over-year (YOY), second among more than 100 tracked U.S. markets. Six economic development announcements in Q3 added to that momentum, totaling nearly $500 million in investment and 850 planned jobs.
Supply And Demand
The market recorded nearly 1.8 million square feet (msf) of new quarterly leasing, though limited big-box availability made Q3 the first quarter of 2026 without a lease exceeding 500,000 square feet (sf). As a result, the average new lease size of nearly 41,000 sf was less than half the first-half average of more than 87,000 sf. Year-to-date (YTD) new leasing surpassed 9.0 msf, keeping 2026 on pace for one of the strongest years on record. Renewal activity totaled nearly 482,000 sf in Q3, bringing the YTD figure to more than 4.2 msf. Notably, renewal volume through just three quarters of 2026 was already more than five times the full-year 2025 total and exceeded every annual total since 2022, underscoring tenants’ commitment to the market. Together with new leasing, renewals lifted YTD activity to nearly 13.3 msf, within 800,000 sf of the 2025 total.
Net absorption totaled nearly 646,000 sf in Q3, marking the eighth consecutive quarter of occupancy gains and bringing the YTD total to more than 2.6 msf. The direct vacancy rate declined 10 basis points (bps) quarter-over-quarter (QOQ) to 7.1%, more than 300 bps below its Q4 2024 peak, while overall vacancy remained at 8.5% as sublease vacancy edged higher. Excluding Cherokee County, where vacant space continued to elevate the market-wide rate, direct vacancy measured 6.2%. Supply remained limited with less than 1.7 msf under construction, just 8.4% of what the pipeline was at the end of 2022. However, three speculative projects totaling nearly 548,000 sf broke ground in Q3, signaling renewed developer confidence. With limited construction and sustained demand, vacancy is expected to continue trending lower.
Pricing
Direct asking rents increased $0.05 QOQ to $6.03 per square foot (psf) in Q3, matching the Q4 2023 record high and rising 2.0% YOY. The increase was driven by higher asking rates within core submarkets, led by the Greer/Hwy 101 Corridor, where rents rose 3.6% QOQ to $6.40 psf. Tightening vacancy and limited new supply are expected to strengthen landlords’ pricing leverage.
