The Carolinas continue to experience dynamic growth across various commercial real estate sectors. From industrial expansion driven by supply chain and logistics needs to tech and life sciences-fueled office demand, the region is evolving rapidly. This article explores six key markets — Greenville/Spartanburg (SC), Columbia (SC), Charleston (SC), Charlotte (NC), Greensboro (NC), and Raleigh/Durham (NC) —highlighting major trends and developments currently shaping the commercial landscape in each.
Greenville/Spartanburg, SC: Industrial vacancy remains tight at under 4%, driven by e-commerce and manufacturing growth. Office vacancies hover around 12%, while retail vacancies are at 7%. More than 8 million square feet of industrial space is currently being built. Industrial rents have climbed by 5%, while office and retail rents remain stable.: Greenville/Spartanburg’s proximity to the Inland Port Greer is a key driver for industrial real estate demand. With the port handling a record number of containers, the need for logistics space is skyrocketing. The region’s strategic location along the I-85 corridor provides quick access to major markets like Atlanta and Charlotte, making it ideal for distribution and fulfillment centers, especially for e-commerce giants like Amazon. Current major industrial developments include Fox Hill Business Park a 3.5 million square foot industrial park catering to logistics and manufacturing needs and Inland 85 Logistics Park a 324-acre development near Inland Port Greer adding over 2 million square feet of industrial space, capitalizing on the port’s growing role in East Coast logistics.
Columbia, SC: Office vacancies remain high at around 18%, reflecting slower office demand post-pandemic. Retail vacancy is at 8%. Several downtown mixed-use projects are taking shape. Office rents have slightly declined due to oversupply, while retail rents are on the rise. Major Columbia developments include the BullStreet District a 20-year urban redevelopment project is transforming downtown Columbia with new offices, retail, and residential units and The WestLawn Building: A new 79,000 square foot Class A office space in BullStreet, designed to attract tech firms and startups. Columbia’s retail sector is seeing growth thanks to consumer demand and urban renewal projects. The BullStreet District is leading this charge, converting former industrial and underused areas into vibrant mixed-use spaces. Retailers like REI and Starbucks have opened flagship locations, catering to both residents and tourists. The rise of tourism-related retail has helped bolster this market as Columbia’s historic downtown becomes a cultural and commercial hub.
Charleston, SC: Industrial vacancies are critically low at around 2.5%, with retail vacancy at 5%. Square Footage Under Construction: Over 6 million square feet of industrial space is in development. Rental Rates: Industrial rents surged by 10%, driven by port activity and high demand. Major Developments include Charleston Trade Center a 3.7 million square foot industrial park, responding to growing port-related demand and Mercedes-Benz Vans Expansion: Expansion at the North Charleston plant will increase the company’s manufacturing footprint and supply chain capabilities. The Port of Charleston remains a driving force behind Charleston’s industrial growth. Handling more than 2.5 million TEUs (twenty-foot equivalent units) annually, the port’s expansion has increased the demand for industrial space. Developers are focusing on warehousing and logistics facilities to meet the needs of major manufacturers like Boeing, Volvo, and Mercedes-Benz, all of which have a significant presence in the region. Additionally, the port’s deepening project, which allows larger vessels to dock, is expected to sustain demand for years to come.
Charlotte, NC: Chalotte office vacancy is around 15%, while industrial space remains competitive with a vacancy rate below 4%. Retail is stable at 6%. Over 5 million square feet of office and industrial space is under development, including new downtown high-rise office buildings. Industrial rents are up 7%, while office rates remain flat, with more leasing incentives offered. Current major Developments include Ballantyne Reimagined a mixed-use development turning Charlotte’s Ballantyne area into a live-work-play environment and Legacy Union a downtown high-rise office complex, anchored by Honeywell’s global headquarters. Charlotte’s office market is still adjusting to the rise of hybrid work models. New developments like Legacy Union and Centene Campus are offering state-of-the-art amenities to attract tenants looking for high-quality, flexible office space. However, many companies are downsizing, and vacancy rates remain high in older office buildings. Developers are pivoting by converting some office space into mixed-use developments, creating vibrant urban areas with retail, residential, and entertainment options.
Greensboro, NC: Greensboro, Nc Industrial vacancy is low at 3%, while office vacancy remains higher at 14%. Square Footage Under Construction includes a 4 million square feet of new industrial space is in development. Industrial rents have risen by 8%, while office rents are flat. Current major Developments include Toyota Battery Plant a $2.1 billion electric vehicle battery facility at the Greensboro-Randolph Megasite and Airpark Logistics Center a 1.5 million square foot industrial park catering to logistics firms near the Piedmont Triad International Airport. Greensboro’s strategic location along major highways like I-85 and I-40, and near Piedmont Triad International Airport, has cemented its role as a growing logistics hub. The Toyota Battery Plant development is expected to create thousands of jobs and drive industrial space demand, particularly from automotive suppliers and logistics firms. Greensboro’s rise as a central logistics and transportation hub continues to attract significant industrial investment.
Raleigh/Durham, NC: Office vacancy is at 13%, driven by the robust tech and life sciences sectors. Industrial vacancy remains low at 4%. Over million square feet of office and industrial space is under development. Both office and industrial rents are increasing, with office rents up due to high demand for Class A space. Major Developments include Apple’s East Coast Campus: A $1 billion investment in Research Triangle Park, set to create over 3,000 jobs. Durham Innovation District: A 1 million square foot mixed-use development designed to attract tech startups. Raleigh/Durham’s commercial real estate market is booming thanks to its tech and life sciences sectors. Research Triangle Park continues to attract high-profile companies like Apple, Google, and Fujifilm Diosynth, driving demand for office and lab spaces. Meanwhile, venture capital investment in local tech startups is fueling the need for flexible office spaces and collaborative work environments. The growth in the life sciences industry is particularly notable, with over $2 billion invested in new research and manufacturing facilities in the region over the past two years.
In conclusion, the Carolinas’ commercial real estate markets are thriving, with each region presenting unique growth opportunities. From industrial expansion in Greenville/Spartanburg and Charleston to tech-driven demand in Raleigh/Durham, these markets are evolving rapidly. Investors and developers should monitor these trends closely as the Carolinas continue to attract businesses across logistics, technology, and manufacturing sectors.