CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company and the world’s largest commercial real estate services and investment firm, has released their Q2 2026 insight report on the state of play of office and industrial commercial real estate movement in the Greenville-Spartanburg area.
Office
The Greenville office market continued to strengthen in Q2 2026, with fundamentals improving across most key indicators. Vacancy fell to 9.9 percent, down 30 (bps) basis points from the previous quarter and 200 bps year-over-year, while availability held at 16.2 percent, below its level from a year prior. Net absorption totaled 35,000 sq. ft., an increase of 20,000 sq. ft. from Q2 2025, led by occupancy gains at the Daniel Building, Orchard Ridge Corporate Center and Raintree Office Park. Meanwhile, a new 100,000 sq. ft. office building has broken ground in Greenville CBD, the first large office development since 2020. Average asking rents climbed to a record $28.97 per sq. ft., up 10.2 percent year-over-year.
Leasing activity remained strong with several major commitments from in market tenants. Fluor Federal Services leased 39,000 sq. ft. in Greenville Suburban, while Clayco Enterprises and Mauldin & Jenkins signed leases for 20,000 sq. ft. and 19,000 sq. ft., respectively, in the Greenville CBD. Together, these transactions accounted for 78,000 sq. ft. of new leasing activity, reinforcing Greenville’s position as a resilient and growing Sun Belt office market.
Industrial
The industrial market posted 2.4 million sq. ft. of positive net absorption in Q2 2026, up 6.3 percent from the prior quarter, while vacancy declined 80 basis points to 5.3 percent. Availability also tightened to 9.2 percent, down 240 basis points year-over-year. Limited new vacant space entered the market during the quarter, helping support declining vacancy. Much of the positive absorption was driven by occupancies of existing vacant Class A space, including BMW’s 918,000-sq.-ft. lease in Spartanburg West, which backfilled former DHL space, and Sunvia’s 621,000-sq.-ft. lease in Laurens. Detmold Group also signed 175,000 sq. ft. in Spartanburg West. New-to-market demand increased, particularly from owner-users, which played a key role in reducing vacancy. Manufacturing activity remains especially strong across the market.
Construction activity continued to be moderate, with 2.1 million sq. ft. underway, down 12.3 percent quarter-over-quarter and 42.1 percent year-over-year. Deliveries totaled 798,000 sq. ft., a 63.7 percent decline from Q1. While the development pipeline has contracted, select projects continue to move forward, including a 130,000 sq. ft. built-to-suit facility by SunCap that broke ground during the quarter and a roughly 720,000 sq. ft. expansion project that remains on track for completion by year-end.