The glut of available office space downtown

[vicupstate]

300 N/ Main st just sold to a new owner. Probably a reno. on common areas. 

[vicupstate]

UBJ reports 28,098 lease in Two Liberty Square, 75 Beattie Place.  Also, a 7,542 SF lease and a 6,384 SF  lease in  55 Beattie Place, One Liberty Square.

[vicupstate]

This isn't office space, but retail, but I thought these numbers were pretty interesting. This is from UBJ. 

Top of the Market Retail Rates:

Savannah: $65

Atlanta; Midtown: $55

Altanta: Buckhead: $80

Columbia: $28

Charleston: $90

Greenville; $40

Charlotte: $50

Raleigh: $45

Asheville: $41

 

 

 

[gman430]

23 minutes ago, vicupstate said:

UBJ reports 28,098 lease in Two Liberty Square, 75 Beattie Place.  Also, a 7,542 SF lease and a 6,384 SF  lease in  55 Beattie Place, One Liberty Square.

Link? New companies or relocated ones already located downtown? 

Edited July 26, 2018 by gman430

[vicupstate]

The latest issue of UBJ has it in the Commercial transaction listings. It only has the agents names beyond what I listed.  

[gman430]

Brantley Anderson and Taylor Allen were agents in the sublease of 7,230 square feet located at 40 W. Broad St. to Branch Banking and Trust Co.

Brantley Anderson and Taylor Allen were agents in the lease of 6,939 square feet located at 105 N. Spring St. by HTI Properties LLC to First Community Bank.

Edited July 27, 2018 by gman430

[gman430]

Chris Prince and Rhett Craig, of Avison Young, represented 131 Falls Street LLC in the leasing of 6,504 square feet of office space at 131 Falls St. in Greenville to Arcpoint Occupational Services LLC.

Zach Hines and Bobby Hines, of Spencer Hines Properties, represented both the landlord, 500 East North LLC, and tenant, Hoffman and Hoffman Inc., in leasing 1,707 square feet of office space at 500 E. North St.

[gman430]

The Greenville-Spartanburg office market absorbed 619,545 square feet over the past 12 months, 390,984 square feet of which was Class A office space. The I-385/I-85 submarket was the most active over the past year absorbing 477,180 square feet. There were five buildings delivered to the Greenville-Spartanburg office market over the past year, adding 130,769 square feet. The overall market vacancy rate dropped from 12.60% during the fourth quarter of 2018 to 10.14% this quarter. Overall average weighted rental rates fluctuated over the past 12 months, but ended up 1.8% higher than this time last year. Suburban submarkets have lower rates than they did at this time last year; however, the vacancy rate has also declined 302 basis points indicating the higher-priced spaces in the market have been absorbed. The overall market weighted rental rates averaged $20.79 per square foot during the fourth quarter of 2019.

The Greenville central business district is comprised of 4.51 million square feet. There are 2 offices under construction within the downtown submarket and, upon completion, will add 160,531 square feet to the market. The downtown submarket posted a negative absorption of 36,879 square feet. Most of the negative downtown absorption was within 2 buildings: the Elliot Davis Building located at 200 East Broad Street posted a negative absorption of 66,000 square feet and the Landmark Building at 301 North Main Street posted a negative absorption of 26,787 square feet. The overall downtown market vacancy rate rose from 11.81% during the third quarter of 2019 to 12.63% this quarter. Likewise, the Class A vacancy rate rose from 11.33% last quarter to 11.55% during the fourth quarter of 2019. The average weighted rental rate within the CBD rose this quarter to $24.58 per square foot because higher quality space became available.

Edited February 9, 2020 by gman430

[distortedlogic]

Cue a certain poster about how horrible the market is in 3-2-1...

[CLT_sc]

6 hours ago, distortedlogic said:

Cue a certain poster about how horrible the market is in 3-2-1...

What do you take from these numbers......negative CBD absorption.....CBD vacancy rate rising almost 100bps.  The county was the big lease winner, that is not a good thing.    Any new out of market companies attracted to downtown taking large blocks of contiguous space?   One still has a lot of space on primary and sub lease market, poinsett has a lot of space, 301 College has a ton of space and BofA will have a big hole when  they move down the street.

now, if you said Charlotte is getting really expensive and it would be a good time for Greenville to try and leverage that into leases, you may have a point.  But, winning architect awards isn’t going to attract companies. In fact, that wouldn’t be a top 10 reason why a company would locate to a city.

[GvilleSC]

17 hours ago, gman430 said:

The Greenville central business district is comprised of 4.51 million square feet. There are 2 offices under construction within the downtown submarket and, upon completion, will add 160,531 square feet to the market. The downtown submarket posted a negative absorption of 36,879 square feet. Most of the negative downtown absorption was within 2 buildings: the Elliot Davis Building located at 200 East Broad Street posted a negative absorption of 66,000 square feet and the Landmark Building at 301 North Main Street posted a negative absorption of 26,787 square feet. The overall downtown market vacancy rate rose from 11.81% during the third quarter of 2019 to 12.63% this quarter. Likewise, the Class A vacancy rate rose from 11.33% last quarter to 11.55% during the fourth quarter of 2019. The average weighted rental rate within the CBD rose this quarter to $24.58 per square foot because higher quality space became available.

Are they considering the two building under construction to be Falls Tower and the renovations to the old BB&T? 

[gvegascple]

This seems like a good time for companies considering relocating to Greenville.  They could negotiate excellent rates on space downtown.  Is there a concerted effort to reach out to out of state companies?  I dont even know how that would even be done.  I am curious just what steps we take to make sure we are on peoples lists when considering where to put their hq.

[GvilleSC]

20 minutes ago, gvegascple said:

This seems like a good time for companies considering relocating to Greenville.  They could negotiate excellent rates on space downtown.  Is there a concerted effort to reach out to out of state companies?  I dont even know how that would even be done.  I am curious just what steps we take to make sure we are on peoples lists when considering where to put their hq.

I believe the city has someone whose job description includes this role? I'm not completely sure what those efforts actually look like. However, I do think the new conference center has the potential to expose a lot more folks to our incredible downtown. With that added tourism could potentially come folks (and their businesses) who value Greenville's quality of life. 

[CLT_sc]

27 minutes ago, gvegascple said:

This seems like a good time for companies considering relocating to Greenville.  They could negotiate excellent rates on space downtown.  Is there a concerted effort to reach out to out of state companies?  I dont even know how that would even be done.  I am curious just what steps we take to make sure we are on peoples lists when considering where to put their hq.

It is a great time for the state of SC to recruit non-manufacturing businesses across the state whether its Charleston, Greenville, Columbia or Ft Mill/Rock Hill.

the traditional challenge facing SC is the ability to produce a deep workforce that companies will look for when relocating.  A lot of college grads head out of state to places like Charlotte, Atlanta, Nashville etc.... The #1 destination for grads of the Moore School of Business at USC is Charlotte.  Another negative is the narrow scope of direct flights offered.   QOL is a tricky measure, it means so many different things to different people.  And, once you are out of the downtown area of Greenville, where 99% of the people live, is QOL a selling point when you are commuting on Lauren’s Rd, Haywood or Woodruff.

The selling points would be low cost, cheaper housing and proximity to Charlotte Douglas Airport. QOL and conference centers won’t mean a lot in selling a company if they can’t get a strong workforce.

[vicupstate]

I wonder what the 66k loss at the  Elliott Davis building was?  I wonder if they are considering that to be Elliott Davis themselves, as they have signed to Falls Tower, but obvious won't move for a year or so yet.   Without that loss, it would be positive absorption.  

As for ONE, they signed two leases in Q3 2019 for 52,000 Sf (Nelson Mullins and LS3P)and almost 15,000 Sf in Q4 2019.  Poinsett Plaza signed a 45,000 Sf lease for World Acceptance in Q3 2019.  I doubt they still have a whole lot left. 

 

[gvegascple]

18 minutes ago, CLT_sc said:

It is a great time for the state of SC to recruit non-manufacturing businesses across the state whether its Charleston, Greenville, Columbia or Ft Mill/Rock Hill.

the traditional challenge facing SC is the ability to produce a deep workforce that companies will look for when relocating.  A lot of college grads head out of state to places like Charlotte, Atlanta, Nashville etc.... The #1 destination for grads of the Moore School of Business at USC is Charlotte.  Another negative is the narrow scope of direct flights offered.   QOL is a tricky measure, it means so many different things to different people.  And, once you are out of the downtown area of Greenville, where 99% of the people live, is QOL a selling point when you are commuting on Lauren’s Rd, Haywood or Woodruff.

The selling points would be low cost, cheaper housing and proximity to Charlotte Douglas Airport. QOL and conference centers won’t mean a lot in selling a company if they can’t get a strong workforce.

These are very good points.  As far as having a deep local workforce.  Due to its proximity, it would not take much to tip the scales so that NC and GA workers exiting schools wouldn't choose GVL over cities in those states.  I agree that things change dramatically when you leave the city limits and that could also be said for a lot of metro areas.  Charlotte is nice but it doesnt do anything for me.  For all the positives, Charlotte is too monochromatic and bland for me, no flavor.  I like how international and open minded and arts and outdoor focused GVL is.  We have a growing Portland like vibe and there is a very strong and growing young professional component here.  

Edited February 10, 2020 by gvegascple

[CLT_sc]

4 minutes ago, gvegascple said:

These are very good points.  As far as having a deep local workforce.  Due to its proximity, it would not take much to tip the scales so that NC and GA workers exiting schools wouldn't choose GVL over cities in those states.  I agree that things change dramatically when you leave the city limits and that could also be said for a lot of metro areas.  Charlotte is nice but it doesnt do anything for me.  For all the positives, Charlotte is too monochromatic and bland for me, no flavor.  I like how international and open minded and arts and outdoor focused GVL is.  We have a growing Portland like vibe and there is a very strong and growing young professional component here.  

The state of SC could definitely do more to keep and attract a workforce in Greenville, Columbia and Charleston.  But, the focus has traditionally been on manufacturing, which isn’t bad....I would love to have BMW Plant Spartanburg in Charlotte.  However, I think they need to do more in attracting and keeping companies in SC.  State Street was the largest bank in SC and moved the HQ to a small town in Florida....no idea why that happened. 

Charlotte, Nashville, Raleigh, Atlanta all have great momentum in attracting people, Charlotte attracts 60k people annually.  Flipping the switch and attracting deep pools of people is not impossible, but there are hurdles for Greenville to overcome.  

14 minutes ago, vicupstate said:

I wonder what the 66k loss at the  Elliott Davis building was?  I wonder if they are considering that to be Elliott Davis themselves, as they have signed to Falls Tower, but obvious won't move for a year or so yet.   Without that loss, it would be positive absorption.  

As for ONE, they signed two leases in Q3 2019 for 52,000 Sf (Nelson Mullins and LS3P)and almost 15,000 Sf in Q4 2019.  Poinsett Plaza signed a 45,000 Sf lease for World Acceptance in Q3 2019.  I doubt they still have a whole lot left. 

 

One is still listing a lot of space for rent, not sure if it includes subleased space too.  

[gman430]

1 hour ago, GvilleSC said:

Are they considering the two building under construction to be Falls Tower and the renovations to the old BB&T? 

I believe so.

17 minutes ago, vicupstate said:

I wonder what the 66k loss at the  Elliott Davis building was?  I wonder if they are considering that to be Elliott Davis themselves, as they have signed to Falls Tower, but obvious won't move for a year or so yet.   Without that loss, it would be positive absorption.  

As for ONE, they signed two leases in Q3 2019 for 52,000 Sf (Nelson Mullins and LS3P)and almost 15,000 Sf in Q4 2019.  Poinsett Plaza signed a 45,000 Sf lease for World Acceptance in Q3 2019.  I doubt they still have a whole lot left. 

 

Yes, that loss is Elliott Davis relocating. 

[vicupstate]

I don't know how up to date this is, but this doesn't show any space in ONE.  I know it use to have a listing for ONE awhile back. 

GADC Office Listing  

[gman430]

Anytime Greenville does land a corporate HQ, they seem to just end up going bankrupt. 

[gvegascple]

2 minutes ago, gman430 said:

Anytime Greenville does land a corporate HQ, they seem to just end up going bankrupt. 

Technically Windstream is Little Rock AR.  NuVox was doing well until WS came along.   

[vicupstate]

34 minutes ago, gman430 said:

I believe so.

Yes, that loss is Elliott Davis relocating. 

So we didn't lose a tenant or lose them to the the burbs, the tenant simply moved to new space within DT.   Nothing to be concerned with, in other words. 

[gvegascple]

19 hours ago, gman430 said:

The Greenville-Spartanburg office market absorbed 619,545 square feet over the past 12 months, 390,984 square feet of which was Class A office space. The I-385/I-85 submarket was the most active over the past year absorbing 477,180 square feet. There were five buildings delivered to the Greenville-Spartanburg office market over the past year, adding 130,769 square feet. The overall market vacancy rate dropped from 12.60% during the fourth quarter of 2018 to 10.14% this quarter. Overall average weighted rental rates fluctuated over the past 12 months, but ended up 1.8% higher than this time last year. Suburban submarkets have lower rates than they did at this time last year; however, the vacancy rate has also declined 302 basis points indicating the higher-priced spaces in the market have been absorbed. The overall market weighted rental rates averaged $20.79 per square foot during the fourth quarter of 2019.

The Greenville central business district is comprised of 4.51 million square feet. There are 2 offices under construction within the downtown submarket and, upon completion, will add 160,531 square feet to the market. The downtown submarket posted a negative absorption of 36,879 square feet. Most of the negative downtown absorption was within 2 buildings: the Elliot Davis Building located at 200 East Broad Street posted a negative absorption of 66,000 square feet and the Landmark Building at 301 North Main Street posted a negative absorption of 26,787 square feet. The overall downtown market vacancy rate rose from 11.81% during the third quarter of 2019 to 12.63% this quarter. Likewise, the Class A vacancy rate rose from 11.33% last quarter to 11.55% during the fourth quarter of 2019. The average weighted rental rate within the CBD rose this quarter to $24.58 per square foot because higher quality space became available.

This is why we dont currently have a 40 story high rise planned or under construction.  

[gman430]

4 minutes ago, vicupstate said:

So we didn't lose a tenant or lose them to the the burbs, the tenant simply moved to new space within DT.   Nothing to be concerned with, in other words. 

Correct. Elliott Davis is bursting at the seams and need a much larger space then what they currently occupy. They are in rapid expansion mode with lots of jobs slated to be added at their new downtown HQ over the next few years.

4 minutes ago, gvegascple said:

Technically Windstream is Little Rock AR.  NuVox was doing well until WS came along.   

I was referring to Certus and Wynit. Lol.

1 minute ago, gvegascple said:

This is why we dont currently have a 40 story high rise planned or under construction.  

On the flip side though, the Camperdown office building has almost all of their space filled and it’s not even topped out yet. 

Edited February 10, 2020 by gman430

[CLT_sc]

49 minutes ago, vicupstate said:

So we didn't lose a tenant or lose them to the the burbs, the tenant simply moved to new space within DT.   Nothing to be concerned with, in other words. 

I’m not sure I would say nothing to be concerned with. If downtown tenants are simply relocating, it doesn’t help other than to have cheaper backfill space to offer.  

One is showing space available.  Where did Nelson Mullins move from?

https://www.onegreenville.com/office.php