Greenville, SC: A Rising Star in Industrial Real Estate and Economic Development

The industrial real estate market in Greenville, SC, is undergoing a transformation that positions it as one of the most compelling investment opportunities in the Southeast. From 2023 to 2025, the Greenville-Spartanburg region has witnessed a surge in demand for industrial space, driven by strategic infrastructure investments, corporate relocations, and a tightening labor market. For investors, this confluence of factors represents not just a short-term boom but a long-term repositioning of the area as a logistics and manufacturing hub.

According to a report by CBRE, the market experienced 2.2 million square feet of direct net absorption in Q2 2025 alone, fueled in part by a landmark lease agreement with DHLGreenville-Spartanburg Industrial Figures Q2 2025^[1]. This single transaction underscores the growing appeal of Greenville as a distribution center, leveraging its proximity to I-85 and I-385, which connect the region to major markets in Atlanta, Charlotte, and beyond. Since 2020, over 12 million square feet of industrial space has been delivered in the area, primarily in the form of large-box facilitiesQ1 2025 Market Reports^[3]. While leasing initially lagged behind construction, demand has accelerated in 2025, with vacancy rates easing and smaller-box space—critical for last-mile delivery—now trading at availability below 5%Q1 2025 Market Reports^[3].

The momentum is further reinforced by public-private partnerships that are reshaping the region's infrastructure. A case in point is the $24.8 million warehouse development on Zimmerman Road in Spartanburg, part of a broader initiative to expand industrial capacity and create high-paying jobs2025 Status Update: 7 Upstate commercial real estate projects^[2]. These projects are not isolated; they reflect a coordinated effort by local governments and private developers to future-proof the region against supply chain shifts and rising e-commerce demand. As stated by the Upstate Business Journal, such partnerships are “catalysts for job creation and economic diversification,” with the industrial sector alone accounting for thousands of new roles in recent years2025 Status Update: 7 Upstate commercial real estate projects^[2].

For equity investors and real estate developers, the implications are clear. The current cycle of development is not speculative—it is demand-led, with corporations locking in long-term leases to secure their supply chains. Meanwhile, infrastructure projects are reducing transportation costs and improving access to talent, creating a virtuous cycle of growth. The challenge for investors is to act before the market fully absorbs the recent construction pipeline, which could tighten availability and drive up capitalization rates.

Greenville's story is not just about bricks and mortar. It is about a region that has mastered the art of strategic reinvention. By aligning industrial real estate development with workforce training programs and transportation upgrades, local leaders have created a model that other cities would do well to emulate. For those with the foresight to invest now, the rewards will extend far beyond the next quarter's earnings report.