The glut of available office space downtown

[GvilleSC]

5 hours ago, NewlyUpstate said:

This is one of the interesting aspects of having a service and manufacturing focused economy.  I wonder how larger higher cost of living cities that have a huge office workforce will fare once this thing is through.  Companies are finally realizing that having all their employees report to a physical workspace 5 days a week isn't all that necessary anymore.

That’s a great point— It’s going to be particularly hard on cities whose downtowns are so singularly focused on office development (really any neighborhood that strictly relies on population influx during the daytime).   Greenville fortunately has a good mix of uses downtown. The District of Columbia on the other hand is so singularly focused on office space downtown that we are going to see serious restaurant and retail impacts from a lack of daytime population for the foreseeable future. 
 

On Chatspan— How much of their “100,000 SF” were they actually using? I imagine it was more of space to grow into? Nonetheless, is it class B space? Lastly, I welcome the emptying of the building in hopes that it will see redevelopment. I’m glad they’re staying in town!

Edited July 1, 2020 by GvilleSC

[gman430]

Maybe Hughes will finally move forward with TWO now on the site. Looks really nice going off the renderings.

[gman430]

Good news to pass along. The Class A vacancy rate in the CBD went from 12.52% to 7.61% from Q3 2021 to Q4 2021 according to Colliers. 298,973 square feet available to now 149,472 square feet available.  Class B and C also saw improvement. 

Edited January 5, 2022 by gman430

[GvilleSC]

11 minutes ago, gman430 said:

Good news to pass along. The Class A vacancy rate in the CBD went from 12.52% to 7.61% from Q3 2021 to Q4 2021 according to Colliers. 298,973 square feet available to now 149,472 square feet available.  Class B and C also saw improvement. 

Great to see, and makes sense from the announcements and moves we've seen over the past several months. 

[gman430]

52 minutes ago, GvilleSC said:

Great to see, and makes sense from the announcements and moves we've seen over the past several months. 

Colliers does not include leases in their reports until the spaces are physically occupied so Canal (Class A) and Kiyatec (Class C) are not included for Q4 2021. Due to this, you will see the vacancy rate continue to drop throughout 2022 especially once those companies fully move in.

Edited January 5, 2022 by gman430

[GvilleSC]

10 minutes ago, gman430 said:

Colliers does not include leases in their reports until the spaces are physically occupied so Canal (Class A) and Kiyatec (Class C) are not included for Q4 2021. Due to this, you will see the vacancy rate continue to drop throughout 2022 especially once those companies fully move in.

I wonder if Wyche would have been included?

[gman430]

4 hours ago, GvilleSC said:

I wonder if Wyche would have been included?

It doesn’t mention Wyche in the report so I am not sure unfortunately. 

[gman430]

"There are few cities seeing office growth as we are," White said.

Downtown Greenville bucks office trends as vacancy drops and prices climb

Greenville is stronger than it was before COVID emerged "by almost every measure," according to Mayor Knox White. "This sets us dramatically apart from most cities, regionally and nationally."

https://www.greenvilleonline.com/story/news/local/2022/04/27/greenville-south-carolina-return-office-work-from-home-trends-covid-pandemic/7380421001/

[gman430]

When One Liberty Square goes from 26,193 square feet available to 41,428 square feet available and Two Liberty Square goes from 20,623 square feet available to 84,714 square feet available. Ouch. 

[cabelagent]

3 hours ago, gman430 said:

When One Liberty Square goes from 26,193 square feet available to 41,428 square feet available and Two Liberty Square goes from 20,623 square feet available to 84,714 square feet available. Ouch. 

In other words…what tower crane? 

[distortedlogic]

10 hours ago, gman430 said:

When One Liberty Square goes from 26,193 square feet available to 41,428 square feet available and Two Liberty Square goes from 20,623 square feet available to 84,714 square feet available. Ouch. 

When and why is this happening? I thought the downtown office market was very strong. 

[gman430]

1 hour ago, distortedlogic said:

When and why is this happening? I thought the downtown office market was very strong. 

It's already happened. CBRE is doing the leasing. Not sure who left but somebody did. They either relocated or decide to go remote from home like a lot of companies are doing. 

Edit: looks like it was Shellpoint Mortgage Servicing for Two Liberty Square if I had to guess. They still have a processing address for One Liberty Square but nothing for Two Liberty Square anymore.  They would be the type of company I could definitely see going remote. HDR and Rödl Langford de Kock have also relocated elsewhere downtown from Two Liberty Square. 

Edited June 25, 2022 by gman430

[gman430]

I don’t think you’re gonna see the space stay empty for long at least in Two Liberty Square. The vast majority of the empty space in that building is on four full floor plates stacked on each other. It’s class A office space and has a full fitness center also. I know several companies have wanted to locate downtown but haven’t been able to due to lack of Class A space. 
 

You shouldn’t see the vacancy rate increase much due to this being the only office space that has seen the vacancy rate increase. All of the other big office buildings downtown are holding steady. 

Edited June 26, 2022 by gman430

[vicupstate]

^^ Given the age of the building, wouldn't it be considered Class B space? 

[gman430]

1 hour ago, vicupstate said:

^^ Given the age of the building, wouldn't it be considered Class B space? 

It’s Class A: https://www.cbre.com/properties/properties-for-lease/office/details/US-SMPL-30111?view=isLetting One Liberty Square is also Class A. I imagine the interior of both buildings have gone through more than one renovation during its life letting them keep the Class A status. 

Edited June 26, 2022 by gman430

[gman]

“Greenville’s tallest building sold to local investors for $25M.” https://www.postandcourier.com/greenville/business/real-estate/greenvilles-tallest-building-sold-to-local-investors-for-25m/article_0c882154-f954-11ec-a707-af21968f7539.html?utm_campaign=blox&utm_source=twitter&utm_medium=social

[GvilleSC]

Canal's name is now on top of 101 North Main. I guess we can begin referring to it as the "Canal Building". 

[gman430]

From Colliers for Q2 2022: 

“The Greenville downtown Class A office vacancy rate dropped to 7.68% and is lacking large space availabilities. Tenants prefer quality offices and amenities found in the Greenville central business district to enhance employee retention. Rental rates are rising due to increasing construction costs and a lack of available space. While tenant improvement allowances are still offered, other concessions are more limited. Tenants are advised to renew leases early to secure office space at least one year in advance of their next lease expiration date.

There are currently no major downtown office developments under construction and very few on the horizon with the cost of construction not supported by current rental rates. Rising interest rates are causing apprehension and a slowdown in capital market activity. The lack of remaining Class A space has led to a decreasing Class B vacancy rate and increasing rental rates.”

 

 

Edited July 8, 2022 by gman430

[GVLover]

1 hour ago, gman430 said:

From Colliers for Q2 2022: 

“The Greenville downtown Class A office vacancy rate dropped to 7.68% and is lacking large space availabilities. Tenants prefer quality offices and amenities found in the Greenville central business district to enhance employee retention. Rental rates are rising due to increasing construction costs and a lack of available space. While tenant improvement allowances are still offered, other concessions are more limited. Tenants are advised to renew leases early to secure office space at least one year in advance of their next lease expiration date.

There are currently no major downtown office developments under construction and very few on the horizon with the cost of construction not supported by current rental rates. Rising interest rates are causing apprehension and a slowdown in capital market activity. The lack of remaining Class A space has led to a decreasing Class B vacancy rate and increasing rental rates.”

 

 

How isn't there demand for a new tallest building in Greenville when demand for office and apartments are at a high? We need a Kane (Raleigh) here. 

Edited July 8, 2022 by GVLover

[gman430]

46 minutes ago, GVLover said:

How isn't there demand for a new tallest building in Greenville when demand for office and apartments are at a high? We need a Kane (Raleigh) here. 

There is demand. Notice Falls Tower is 100% occupied with its office space. It’s just hard right now to develop a speculative office high rise due to inflation and interest rates continuing to go higher. 

Edited July 8, 2022 by gman430

[gman430]

https://static1.squarespace.com/static/620aba513570ff5ae4d38a39/t/620d6e6a4b7fc6721e872f3a/1645047407113/Main-St-Labs-Book-v.5+(1).pdf

[gman430]

Class A vacancy rate in the CBD has dropped to 3.46% according to Colliers in their latest office market report for the area.  67,958 out of 1,964,200 square feet is available. This is an all time low vacancy rate for Class A space in the CBD. Spartanburg CBD is in the same boat with their Class A vacancy rate at 3.09%. Class B for Greenville CBD is at 16.72% and Class C for Greenville CBD is at 34.84% vacancy rate. Colliers says to expect Class B space to start being renovated and moved up to Class A due to all of this occuring. 

Edited October 6, 2022 by gman430

[distortedlogic]

9 hours ago, gman430 said:

Class A vacancy rate in the CBD has dropped to 3.46% according to Colliers in their latest office market report for the area.  67,958 out of 1,964,200 square feet is available. This is an all time low vacancy rate for Class A space in the CBD. Spartanburg CBD is in the same boat with their Class A vacancy rate at 3.09%. Class B for Greenville CBD is at 16.72% and Class C for Greenville CBD is at 34.84% vacancy rate. Colliers says to expect Class B space to start being renovated and moved up to Class A due to all of this occuring. 

Pretty impressive on the A and B, but that seems like a lot on the class C. I wonder if the class C would be better off upgrading to class B or converting to something else; retail or residential?  Do you know the total sq ft in Greenville for classes B and C?

[gman430]

3 hours ago, distortedlogic said:

Pretty impressive on the A and B, but that seems like a lot on the class C. I wonder if the class C would be better off upgrading to class B or converting to something else; retail or residential?  Do you know the total sq ft in Greenville for classes B and C?

Class B has 1,421,137 total square feet with 237,671 available. Class C has 768,191 total square feet with 267,663 available. 

 

[gman430]

From Colliers. CBD vacancy rates for Q4 2022. Class A and Class B held mostly steady while Class C had a large jump in vacancy rate: 

 

Class A-3.52%. 69,132 square feet vacant out of 1,964,200 square feet. 23 buildings. Yay. 

Class B-17.42%. 247,553 square feet vacant out o f 1,421,137 square feet. 17 buildings. Meh. 

Class C-51.71%. 397,244 square feet vacant out of 768,191 square feet. 11 buildings. Ouch. 

Edited January 11, 2023 by gman430