Greenville-Spartanburg Industrial Figures Q1 2025

GSP's industrial market, following its third-best year for absorption, continues to thrive in 2025 with over 1 million sq. ft. of direct net absorption, primarily due to new leases. This growth was supported by 2 million sq. ft. of direct leasing activity in Q1. The Spartanburg West submarket led gains with over 1 million sq. ft. of leasing, resulting in 727,001 sq. ft. of direct Class-A absorption, highlighted by PL Development's lease of 474,240 sq. ft. at 1817 E Poinsett St Ext. Negative absorption of -226,332 sq. ft. was primarily due to Class-C space move-outs. The market is stabilizing after delivering over 40 million sq. ft. of construction in the past five years, leading to a declining development pipeline in 2025. Properties sized between 50,000 and 375,000 sq. ft. absorbed over 515,000 sq. ft. in Q1 2024, reflecting the preference for this building size. Noticeably, as absorption/leasing volume looks to make in impact in the vacancy rate, none of the absorption in Q1 2025 came from Asian 3PL.