Supply and Demand
Greenville-Spartanburg’s office market continued to tighten in Q3, as overall vacancy declined 20 basis points (bps) quarter-over-quarter (QOQ) to 8.7%. Net absorption totaled more than 31,000 square feet (sf), bringing the year-to-date (YTD) occupancy gains to nearly 125,000 sf. Class A vacancy fell 50 bps QOQ to 6.0% overall, led by Southeast Greenville, where the rate dropped 120 bps QOQ to 10.4%. In the Greenville central business district (CBD), Class A vacancy measured just 2.2%, leaving limited options for tenants seeking top-tier downtown space. Conversely, larger blocks of vacancy remained concentrated in older Class B assets, which accounted for nearly 660,000 sf of vacant space at a 19.6% vacancy rate, more than one-third of the metro’s total. This imbalance has created opportunities for new development, with two projects totaling just over 100,000 sf breaking ground in the Greenville CBD in Q3, including substantial space already committed through preleasing.
New leasing totaled nearly 243,000 sf in Q3, bringing YTD activity to more than 614,000 sf and positioning the market for its strongest annual leasing total since the pandemic. Demand remained concentrated in and around the urban core, with Greenville CBD and Southeast Greenville accounting for 91.6% of quarterly new leasing. With limited new supply, vacancy is expected to continue to decrease as recently signed leases commence.
Pricing
Overall asking rents increased 2.6% QOQ to $26.08 per square foot, up 5.2% YOY to a new market high. With top-tier downtown space in short supply and vacancy continuing to tighten, landlords are expected to maintain pricing leverage, supporting further rent growth.
Investment
Suburban office investment activity rose sharply in 2026. Two suburban sales totaling just over $41.0M closed in Q3, led by the $35.3M purchase of Independence Corporate Park, a seven-building portfolio totaling more than 307,000 sf along Pelham Rd. Through Q3, five suburban office sales totaled more than $101.0M across approximately 765,000 sf, more than five times the full-year 2025 total of $18.3M.
