A Bright Horizon - Progress, Prosperity and Possibility for Greenville and Spartanburg

A Bright Horizon Progress, Prosperity and Possibility for Greenville and Spartanburg

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Liberty Bridge, Downtown Greenville, SC

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The Right Time, Place & Team As you read this booklet, Greenville,

Main Street in the late seventies? Was it the

Carolina are becoming a destination for

Michelin, and then BMW to our area?

Spartanburg and the Upstate of South

creative individuals and thriving businesses

good fortune to lure General Electric, then

seeking something different: A vibrant

Was it the decision to tear down “a perfectly

to opportunity and healthy growth; and a

centerpiece for Greenville that punctuated

small-city vibe; an entrepreneurial approach gathering of thousands of America’s brightest minds fueling a wave of manufacturing

good bridge” in 2003 in order to create a new the region’s rebirth?

innovation.

It was all of these, of course, along with what

How did we get here?

term-visioned people in all the different

Was it the good fortune of Roger Milliken

moving the Deering Milliken headquarters

author James Fallows described as “long

sectors working together to say what will this town look like a generation from now.”

to Spartanburg in 1959? Was it the idea of a

Indeed, this is exactly the right time and the

Was it Max Heller’s leap-of-faith vision to

the surrounding area. And for those who want

modern airport to service the region?

create Greenville’s European-style walkable

right place for these two emerging cities and a tangible piece of the future of Greenville

and Spartanburg, there is a commercial real estate firm standing ready to understand,

guide and execute your personal vision with a level of expertise, perspective and energy unsurpassed in our market.

As Randall Bentley said recently, “the world has discovered Greenville, Spartanburg

and the Upstate. How blessed we are to call this our home and to play a part in shaping its future.”

Randall Bentley, CCIM, SIOR President and Principal of Lee & Associates Greenville / Spartanburg

Our President / Principal, Randall Bentley, CCIM, SIOR, discusses what’s driving the commercial real estate market in Greenville, South Carolina.

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Engineering: The Driving Force Behind Greenville’s Growth

As Greenville continues to collect accolades in national media, it was a Wall Street Journal story from May 9, 2021 that captured the essence of the area’s sustained economic success. Titled “The Breakout Cities on the Forefront of America’s Economic Recovery,” the article focuses on three cities – Greenville, Des Moines, Iowa and Provo, Utah – that, even before Covid-19, were “quietly building out vibrant economies in the shadows of bigger metropolises.”

Particularly for these three mid-sized cities, Journal writer Justin Baer noted a “mix of hightech jobs and old-line industries, including manufacturing and finance, that turned out to be more resistant to the downturn.”

Manufacturing has been at the core of Greenville’s identity since the first textile mill was built adjacent to the Reedy River in the 1880s, at what is now Falls Park. Once known as the Textile Capital of the World with nine venerable mills forming Greenville’s “textile crescent,” manufacturing began to decline in the 1960s, and had all but vanished by the mid-70s.

1968: The Turnaround Begins Many trace Greenville’s economic rebirth to 1968, and the opening of GE’s 340,000-square-foot turbine power plant off of Garlington Road. Today, that campus includes 1.7 million square feet of factories, offices and laboratories focused on manufacturing advanced products for customers worldwide.

After investing heavily in South Carolinabased plants throughout the seventies, Michelin selected Greenville for its North American headquarters in 1985. Over the past 40 years, the French tire maker has invested over a billion dollars in Greenville County, alone. The company recently announced plans to invest an additional $175 million for new equipment in Greenville and Spartanburg over the next seven years as part of the company’s commitment to advanced manufacturing in the Upstate.

Seven years after Michelin opened its headquarters, BMW announced its 1,150

Opened in 1968, G.E.’s Gas Turbine Plant in Greenville features a 340,000-square-foot Advanced Manufacturing Works research center.

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square foot North American manufacturing center in Spartanburg County. A 2018 study by the Darla Moore School of Business at the University of South Carolina estimated the annual economic impact of BMW Manufacturing on the U.S. economy, measured in terms of overall output, was $38.5 billion. The study also said that BMW Manufacturing operations in South Carolina support nearly 104,000 jobs across the United States.”

[Engineering] has created an ecosystem here, and Greenville has become an engineering hub in the country.”

Buoyed by the impact of BMW, Spartanburg County was recently ranked as the sixth strongest manufacturing economies in

Reflecting on the impact of the pandemic to the region, Greenville Area Development Corporation president Mark Farris remarked,

This combination of manufacturing pedigree, engineering talent, extraordinary international investment, proximity to major markets, available and affordable land, along with the area’s remarkable quality of life have positioned Greenville-Spartanburg for continued prosperity.

Engineers do one thing really well: They promote economic development. They create things. the U.S., based on the growth rate of manufacturing output, manufacturing output per capita, the location quotient for manufacturing workers and the growth rate in manufacturing jobs.

Pardon the Pun, But What’s Driving All of This?

Engineering talent is at the top of the list.

Within the ten-county Upstate region, there are over 10,000 engineers. The national average for an area this size is approximately 7,000. According to census research, Greenville-based engineers earn nearly $80,000 a year versus a per-capita income of just more than $28,000 for workers in Greenville County.

Assessing the impact of engineering with writer John Jeter in a 2018 story in Greenville Business Magazine, Dr. Anand Gramopadhye, dean of Clemson’s College of Engineering, Computing, and Applied Sciences, remarked that “engineers do one thing really well: They promote economic development. They create things – they don’t talk about it – they create things: cars, turbines, products that sell.

“prior to the Covid shutdown in March and April of 2020, we had over 600 manufacturers in Greenville. Of course, the pandemic created significant challenges, but it didn’t force one manufacturer out of business. That stability helped us to rebound quicker and get this market back on track a lot faster than many cities that aren’t blessed with a strong manufacturing base.”

Over 140 years after Greenville’s first textile mill was constructed, manufacturing is still an enormous part of the Upstate’s legacy and its future. To be sure, there are challenges ahead.

Other markets have studied the GreenvilleSpartanburg playbook and are busy attracting elite talent to transform their economies.

But the future looks unquestionably bright.

“Who wouldn’t want to have our quality of life, our civic leadership and the promise of so many good things to come,” asked Lee & Associates Greenville/Spartanburg president Randall Bentley. “This is truly the right time and the right place.”

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Kevin Bentley, SIOR, Executive Vice President and Principal at Lee & Associates Greenville / Spartanburg, has been in commercial real estate for over twenty years, all here in the Upstate. As a broker specializing in industrial properties, he works with a variety of clients ranging from large companies to smaller local businesses seeking to develop, acquire, dispose or lease industrial buildings throughout the Upstate.

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What makes Lee & Associates different?

What’s happening with the industrial segment in the Upstate?

The biggest thing is that we’re a broker-

The industrial market has just exploded along

owned organization. Each office is individually

the I-85 corridor, and particularly in the stretch

owned, but we share the same culture. We’re

from Spartanburg to Greenville to Anderson.

very entrepreneurial in the way we think.

We’re close to the center between Atlanta

Across the country, Lee people are responsive

and Charlotte. Interstate 85 has easy access

and care about customer service. You can call

to get product up and down the East coast.

a Lee broker in California, and he’ll take your

Plus, we’re easy access from the port and have

call almost instantly and get you exactly what

a very large and very qualified workforce.

you’re looking for.

What’s happening here is absolutely amazing.

What do you love most about your work?

What kinds of details matter when considering an industrial building?

I enjoy taking the time to get to know

Well, for certain, it’s not just four walls

a client and understand their business.

anymore; not if you’re going to compete.

And, of course, matching them with the

You have to consider dock heights, column

right property. I love working through the

spacing, how level the floor is, how many

challenges, thinking creatively and adapting

racks you can put in an area. In Atlanta,

the property to fully meet their needs. When

they’ve been 32-foot clear (usable height for

a client invites me to their grand opening and

storing product on racking) for years. Here in

I’ve helped play a part in their success, that

Greenville-Spartanburg, we’ve been 20-foot

really gives me a lot of satisfaction.

clear forever, but as this area has attracted

more large distribution facilities, everything

a broker in another state, I know my client is

is now designed 32-foot clear. Because of

going to get a high quality of service.

e-commerce and last mile strategies, we look at how much trailer parking you have, because product sits in the truck, and then it’s brought into the building. Naturally, the property configuration is critical in terms of how much square footage is achievable. It’s also important to understand tax incentives, which vary from county to county. There’s just so much more than meets the eye.

What is the SIOR® designation?

SIOR is the Society of Industrial and Office Realtors®, and in essence, it’s made up of today’s most knowledgeable, experienced and successful commercial real estate brokerage specialists. It’s a higher caliber of

What’s the most important skill for a successful commercial real estate professional?

The biggest tool we have is to listen to what that client tells you, what they do, what they want. And you go out and find that blank piece of paper to make it happen. That’s true for a developer or a tenant. We care about putting the right kind of tenant in the right kind of building. It’s all about functionality, about the building being well designed for everything that tenant needs in terms of workflow to run a successful business. It’s all about asking the right questions and listening.

education. It requires certain qualifications over a three-year period, which can vary from state to state, depending on market size. I’ve been in SIOR since 2005, one thing I really appreciate is that if I need to refer a client to

As Kevin Bentley, SIOR, explains in this short video, the designation SIOR is your assurance of the highest standards of professionalism in commercial real estate.

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Pictured above, the Lee & Associates’ Spartanburg team: Matthew Reynolds, Matt Roos, Adam D. Padgett, SIOR, and Jordan Skellie.

There are more than forty cities named Greenville in the United States.

Appropriately, there is only one Spartanburg.

Spartanburg is the story of invention and transformation; of punching well above its weight. The fact that BMW chose Spartanburg County for its North American manufacturing home is due, in no small part, because Roger Milliken had the idea of encouraging Swiss and German textile machinery giants Rieter, Sulzer and Menzel to open U.S. operations here in the early 1960s. A few years later, Frankfort-based Hoechst followed suit.

Now, with OneSpartanburg, Inc., formed by merging the Chamber of Commerce, the Convention and Visitors Bureau and the Economic Futures Group, Spartanburg county has powerful, consolidated team to continue to grow business, tourism and the local economy. As you see from the chart, it’s paying off. In the first six months of 2021, almost $1.2 billion in new business investments and more than 3,000 jobs created.

Suddenly, there was a European flavor to Textile Town and millions in foreign investment. Spartanburg had discovered a formula for sustainable growth.

In the middle of all this opportunity are Adam Padgett, Jordan Skellie, Matthew Reynolds and Matt Roos, the Lee & Associates’ commercial real estate team in the Hub City. Each has a special tie to Spartanburg, and a unique appreciation of what the firm brings to clients, both large and small.

“Today, Spartanburg County is that ideal blend of so many critical attributes essential for growth,” says Lee & Associates Exec. V.P. and Principal Adam D. Padgett, SIOR. “I’m talking about quality of life, a skilled workforce, pro-business state and local officials, utility infrastructure, geographical proximity and the inland port, reasonably priced land and, of course, world class manufacturing.”

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“I love what our firm means to this community,” says Skellie. “We work with Fortune 500 companies and locally-owned businesses.

We treat each client with the same attention to their needs and ultimate end goal.”

TALENT

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Take for example Germany-based MEVA Formwork Systems. MEVA is one of the original innovators in formwork technology for construction contractors, with a portfolio of modular formwork and shoring products used in pouring structural concrete.

In 2020, MEVA president Scott Fisk began considering a relocation of his Charlotte facility to a larger property in the Spartanburg area for closer access to Atlanta. Coming out of the Covid shut-down, the industrial real estate market was unusually active.

Skellie located a 56,000 square-foot building on six acres near the intersection of I-85 and I-26 that checked all of the boxes, but it was only for lease at the time. He then helped MEVA structure an offer to purchase the building and negotiated the terms with the existing owner, which eventually led to securing the property for MEVA. According to Fisk, locating and finalizing the purchase of the property required

in Economic Strength Nationwide Area Development’s Leading Metro Locations

extraordinary focus and persistence from the Lee & Associates team. “This market is exploding as companies see the Upstate’s geographic proximity, quality of life and affordability. We were fortunate to have Jordan’s depth of knowledge of industrial properties, as well as his sense of urgency when we uncovered the right opportunity.”

The key is always knowing the client’s timetable and requirements.

“What we do takes a lot of patience,” says Padgett. “You can’t rush a deal, but when a client needs something right now, you have to be nimble and you have to know the market. And you have to be able to put something viable in front of them quickly to get that deal done.”

Adam D. Padgett, SIOR & Jordan Skellie of our Spartanburg office discuss the culture that differentiates us as a top full-service commercial real estate brokerage.

The new Spartanburg regional center for MEVA Formwork Systems

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Industrial Property Today

Making sense of the Upstate’s Rapid Growth To get a sense of the dynamics driving

Why does it matter?

in Upstate, South Carolina, spend an hour

Today, in the Upstate of South Carolina,

Associates (pictured above on right on site at

spinning rate. The first wave of supply came

industrial real estate along Interstate 85

with Chad Stepp, Senior Associate at Lee &

Augusta Arbor in southern Greenville County).

“I’ve spent the last three and a half years

tracking the key data points for virtually every industrial project between Spartanburg and

Greenville,” says Stepp. “I look at why someone went there and why they paid what they did.

What did they need? Why did they choose

Spartanburg over Anderson? Was it the labor

online in late 2019, and into 2020. Then Covid hit. Buildings began being absorbed at a very fast pace in late 2020 and large institutional capital firms zeroed in on Greenville-

Spartanburg because of the strength and

diversity of the manufacturing economy; the

proximity to Charlotte, Atlanta and Raleigh; the quality of life and the affordability.

pool? Was it a cheaper rate? Was it cheaper

Demand for large tracts of land close to

these factors help to explain why did they go

overnight.

taxes? Was it proximity to the Inland Port? All

where they went. We track all this to help our

clients with their next speculative facility, along with all the dynamics that go with it.

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development deals are happening at a head-

I-85 got hot. Cap rates plummeted almost

“We’re talking about buildings that would be at $80 per square foot now selling out

$110 a foot. Obviously, that’s attractive for

For Lee & Associates, that often means helping their clients execute a variety of items such

as a phase one environmental, followed by a

geo-tech study, a wetlands survey, an ALTA title survey, topographical survey, grading plan and

overall feasibility plan. In addition, there are tax incentives and special source revenue that vary county by county and deal by deal.

Then there’s proximity and timing. “If you have a site under contract next door to a 200,000

square-foot building, you’re not looking at that existing building as your true competition,”

says Stepp. Instead, we’re looking at the six

nearby sites, and how you’re going to stack up against them twelve months from today. That’s what matters; that’s what we evaluate.”

All this is a big part of the entrepreneurial spirit at the heart of the more than sixty Lee & Associates offices across the U.S.

Professionalism, dedication and drive to bring vetted market intelligence to investment developers to come in and build because of

clients is what Lee & Associates prides

the spread they can make. So, the demand has

themselves on.

months. And it’s all happening at absurdly fast

At the time of this printing, Stepp and his

picked up here tremendously over the last six turnaround times.”

colleagues are handling five new-construction

How does Lee & Associates give its clients the

3.86 million square feet in the pipeline … a

especially in this kind of environment?

entrenched as a major player in the Greenville-

edge in evaluating the potential of a property,

industrial projects in the Upstate, with another very good sign that Lee & Associates is fully Spartanburg market.

“It’s simple, really,” according to Stepp. “We

move at an incredibly fast rate to know more

about that property’s viability than anyone in this market.”

“ We move at an incredibly fast rate to know more about that property’s viability than anyone in this market.” - Chad Stepp 11

Joined At The Hip More than Just a Property, This Was the Birth of a New Brand Driving by the new HipBurger in Mauldin, it looks like an emerging national “fast casual” chain. Great branding, colorful graphics and an ideal location on Butler Road off of I-385.

Step inside and it gets even better. Amazing fresh meat hamburgers, chicken sandwiches, hand-cut fries and milkshakes … all prepared to order, along with an energized staff intent on delivering a great customer experience.

In a sense, HipBurger is an emerging national chain. It’s just that it’s all starting right here with Daniel Knowlton’s very first restaurant.

After finalizing the name and branding package in 2017, Knowlton set out to find the perfect location for his flagship restaurant. He was originally referred to Ashley Trantham, an associate with Lee & Associates, who then saw fit to bring Darath Mackie into the deal because of Darath’s development and construction background. From this day forward, they partnered together to bring success to Daniel and his vision for HipBurger. This kind of entrepreneurial partnership is common among the firm’s associates, as well as a willingness to do whatever it takes to bring about client success.

The chemistry was great from the start. “Darath and I were so taken with Daniel’s energy and vision,” says Trantham. “Even the HipBurger brand manual was so well thought out. We felt the concept had great potential to be successful.”

Mackie introduced Knowlton to Mauldin’s Community Development Director, Van Broad, who presented the city’s ambitious plans to create more of a “sense of place” within the downtown area. With this new clear vision of where the town was headed, along with its deep roots as a family-oriented community, Mauldin seemed a perfect place to introduce HipBurger to the world.

Lee & Associates’ Darath Mackie and Daniel Knowlton, owner of HipBurger in Mauldin, SC

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Mackie led an extensive search to pinpoint the right location, but it was all her behind-thescenes work that accelerated the process.

“Darath’s background was in commercial construction, so she was instrumental in

selecting the architect, project manager and

many of the contractors that we worked with.

So, not only was she good at finding this

property, she knew how to match me up with

people in her network who had the expertise we needed to get going.”

Like every other business owner in America, Knowlton had to deal with the Covid-19

disruption in the Spring of 2020. Undeterred, he used his colorfully branded food truck to

take the HipBurger concept all over Mauldin, one neighborhood at a time. The approach

helped build momentum for the opening of the new restaurant.

For Mackie, who’s working with Knowlton to

identify the ideal properties to locate the next

two HipBurger restaurants in the Upstate, the hard work has been worth it.

“It’s so rewarding when you see somebody living their dream and knowing that you

were a part of that,” she says. “I walk into this

restaurant at least maybe once a week with my

family and love hearing the positive comments

from customers. It means so much to help really good people be as successful as they can be.”

According to Knowlton, the relationship with

Mackie is a lot more than just negotiating the acquisition of property. “Darath wasn’t just

concerned about selling me a property. She

was concerned about me having a successful

business, and that’s still her focus today. She’s part of my team.”

In this video, learn more about how Lee & Associates’ own Darath Mackie worked closely with HipBurger to source and acquire their first restaurant location.

“We were so taken with Daniel’s energy and vision. We felt the concept had great potential to be successful.”

– Ashley Trantham, Lee & Associates 13

Lee & Associates’ Andrew Harrill (right), pictured with client Jay Desai at his new retail center in Greer, SC.

Andrew Harrill and the Power of Adding Value A beautifully landscaped modern convenience store. A smart-looking strip center nestled in a growing residential area. A repurposed older building with a new tenant and sudden new life.

These properties bring value to the tenants and owners; to dozens of local construction and service businesses; and finally, to thousands of residents within the surrounding community. We pass these properties every day and typically don’t think twice about how they got there.

Fortunately, Andrew Harrill does. A member of the Lee & Associates Greenville/ Spartanburg team since 2017 and a finance graduate of The Citadel, Harrill loves to weed through the maze of tenant agreements, P&L statements and local market dynamics to explore possibilities.

His success comes from analyzing the market, assimilating the critical trends, fully understanding the client’s goals and being

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able to paint a clear picture that shows projected return on investment based on various strategies. “I like to take the analysis and put it on a spreadsheet,” Harrill says. “I tell them what the numbers are; I break the down the market and focus on the details. Then I show my client what it looks like after the fact.

We discuss marketing strategy and how we deliver tenants.”

Equally as important is the quality of tenants for a building owner. “Understanding intentions of the tenant are important,” says Harrill. “I want to see the tenant’s sales and income to make sure they’re not a risk. If my client is interested in buying the building and a tenant has questionable credit, it will have an impact. On the other hand, if the tenant is performing well financially, the higher my value can potentially be on that property.”

A tireless networker and relentless student of this business, Andrew Harrill is the one professional every local property owner/ investor wants on his team.

Support Makes All The Difference Lee & Associates professionals routinely work

first-class support team, armed with the latest

international clients, ranging from Upstate-

dynamic market intelligence, to keep our

with a broad scope of regional, national and based businesses, local investors, major

corporate users and institutional investors.

Particularly in today’s extraordinarily fastpaced business environment, it takes a

technologies, leading edge resources and client-facing associates at the top of their

game. Each member of this team shares a

commitment to professionalism, integrity and client success.

Pictured left to right: Amanda Beal (Accounting Manager), Elizabeth Bentley (Real Estate Paralegal), Marty Bentley (Vice President and Principal), Lauren Spivey (Administrative Assistant) and Elledge Willis (Marketing Manager)

Lee & Associates: An International Presence that Means Business

54%

INCREASE IN SOLD & LEASED SF OVER 5 YEARS

$14+

BILLION 2020 TRANSACTION VOLUME

1,300+ PROFESSIONALS AND GROWING

69+

LEE OFFICES AND GROWING

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“Opportunity never sleeps. It’s there for those with the experience, creativity and energy to explore what’s possible.

We believe there’s never been a better time to be part of the growth of the Upstate and Western North Carolina. There’s a bright horizon. If you’re looking for a strong partner for the road ahead, we’re ready to talk.”

Randall Bentley, CCIM, SIOR President / Principal

GREENVILLE OFFICE 101 W. Court St. Suite A Greenville, SC 29601

SPARTANBURG OFFICE

320 East Main Street, Suite 430 Spartanburg, SC 29302 leegreenville.com 864.704.1040

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