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NAI Furman,NAME LLC NAIEarle MEMBER Industrial Report | Second Office Report | First Quarter Quarter 2007 2009


Upstate Market STATISTICS:

TRENDS: Vacancy Rate

Net Absorption

Number of Buildings........................................................3,910 Market Size (SF)....................................................167,762,102 Overall Vacancy Space (SF)....................................18,692,225 Overall Vacancy (%)........................................................11.1% Direct Vacancy (SF).................................................18,264,695 Sublease Vacancy (SF).................................................427,530 Net Absorption.............................................................381,583 Average Asking Rental Rate ($/SF/YR)............................$3.55

Overall Vacancy (%) 11.5% 11.0% 10.5% 10.0% 9.5% 9.0% 1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

OVERVIEW: Average Asking Rental Rate

Construction

Asking Rents

Overall vacancy rates declined to 11.1% this quarter after a steady increase in recent quarters. Vacancy for flex properties declined to 19.8% and warehouse vacancy declined to 11.1%.

$4.00

One new project broke ground this quarter, a 76,711 square foot Class A single tenant building. The property is 100% leased and is located on Fairforest Way in Greenville. Also under construction is a 77,089 square foot Class B manufacturing building located on Augusta Road in Greenville.

$2.50

$3.50 $3.00

1Q08

2Q08

3Q08

4Q08

NYK Logistics (Americas), Inc. signed the largest lease this quarter to open their newest reverse logistics facility. The 100,000 square foot location will handle returns of merchandise from retail customers in the area. The warehouse staff includes seven full-time employees. NYK Logistics is a $1 billion company with over 45 locations and 1,300 employees throughout the Americas.

Major Lease Transactions Tenant:

Address:

Size (SF):

NYK Logistics (Americas), Inc.

1387 Victor Hill Road

N/A

111 Hurricane Creek Road

9,600

Anderson

Valiant USA

560 Brookshire Road

6,000

Spartanburg

The Service Center

273 Lakewood Drive

6,000

Greenville I-85

King Automation

131 Runion Road

5,000

Spartanburg

Gallman Windows and Doors

61 Byrdland Drive

5,000

Spartanburg

100,000

Submarket: Spartanburg

NAI Earle Furman, LLC | 101 East Washington Street, Suite 400 | Greenville SC 29601 864.232.9040 | www.naiearlefurman.com

1Q09

2Q09


NAI Earle Furman, LLC Industrial Report | Second Quarter 2009 SUBMARKET/ # BLDGS. TOTAL RBA TOTAL AVAIL. TOTAL VACANT TOTAL NET TOTAL AVERAGE UNDER CLASS (SF) (SF) AVAIL (%) Absorption (SF) RATE ($/SF/YR) CONSTRUCTION (SF)

Greenville I-385

586

Class A Class B Class C

22,178,079

1,547,334

5.8%

(3,642)

$3.56 0

233,333 651,405 661,756

36.0% 6.6% 13.6%

4,046 (8,946) (11,220)

$4.12 0 $5.27 0 $3.67 0

11.8%

13,108

$3.14

0% 33.9% 22.9%

0 27,725 1,200

0 76,711 $3.58 0 $2.42 0

9 206 220

647,300 9,910,452 4,874,735

Greenville I-85 Class A Class B Class C

190

9,177,565

1,084,292

0 45 89

0 1,450,645 1,763,174

0 491,291 403,778

Pelham Road/ Hwy. 14

173

5,098,257

612,101

12.0%

3,600

56,000 1,450,645 1,640,257

37,000 491,291 83,810

66.1% 33.9% 5.1%

(7,500) 27,725 (16,625)

$6.31 $3.98 $5.07

180

7,337,953

716,983

9.8%

(10,360)

$3.04 0

3 38 112

327,750 2,096,479 2,551,501

0 416,000 279,383

0% 21.9% 10.9%

0 5,000 (10,360)

N/A 0 $3.07 0 $2.75 0

72

2,980,913

82,200

2.8%

26,066

$2.52 0

2 21 27

122,550 1,096,138 7 20,015

0 15,000 67,200

0% 1.4% 9.3%

Class A Class B Class C

5 45 56

Rt. 29/ Rutherford Rd. Class A Class B Class C Travelers Rest Class A Class B Class C West Greenville

449

Class A Class B Class C

4 97 206

13,916,424 599,454 3,800,900 6,949,748

0 0 0

N/A N/A $2.52

0 0 0

14.0%

(33,657)

$2.49

0

436,814 431,104 1,077,157

72.9% 11.3% 15.5%

0 (52,757) 19,100

$2.50 $2.78 $2.25

0 0 0

1,302,153

7.7%

(91,270)

$2.75 0

0 4,798 (92,468)

N/A $2.81 $2.68

208,111

$3.51

344,089 13,998) (104,163)

$4.10 522,500 $3.85 0 $2.84 0

414

Class A Class B Class C

8 107 211

415,363 6,047,892 6,478,628

3,800 1,024,178 270,575

0.9% 16.9% 4.2%

1,151

69,782,464

6,882,769

9.9%

16 269 390

3,705,328 20,174,290 16,690,372

690,000 3,087,931 3,009,821

Class A Class B Class C

0 0 0

$4.19 0

1,945,075

Anderson/Pickens

Spartanburg

16,863,692

76,711

18.7% 15.3% 17.7%

NAI Earle Furman, LLC | 101 E. Washington Street, Suite 400 | Greenville SC 29601 864 232 9040 | www.naiearlefurman.com

0 0 0 522,500


NAI Earle Furman, LLC

Methodology / Definitions / Submarket Map Absorption (Net) The change in occupied space in a given time period. Available Square Footage Net rentable area considered available for lease; excludes sublease space.

Travelers Rest

Average Asking Rental Rate Rental rate as quoted from each building’s owner/ management company, For office space, a full service rate was requested; for retail, a triple net rate requested; for industrial, a triple net basis. Building Class Class A Product is office Space of steel and concrete construction, built after 1980, quality tenants, excellent amenities & premium rates. Class B product is office space built after 1980, fair to good finishes & wide range of tenants. Direct Vacancy Space currently available for lease directly with the landlord or building owner. Market Size

Uptown

15.3 million SF vacant 4.13% vacancy rate Rt. 29/Rutherford Rd. $54.14 SF/YR avg. rental Greenville CBD

West Greenville

Anderson/ Pickens Anderson

Spartanburg

MidtownPelham Rd/Hwy 14

4.88 million SF vacant Greenville 4.7% vacancy I-385 rate $37.53 SF/YR avg. rental Greenville I-85

Downtown

11.3 million SF vacant 4.o% vacancy rate $42.03 SF/YR avg. rental

Includes all existing and under construction office buildings (office, office condo, office loft, office medical, all classes and all sizes, both multi-tenant and singletenant, including owner-occupied buildings) within each market.

Sublease Arrangement in which a tenant leases rental property to another, and the tenant becomes the landlord to the subtenant.

Overall Vacancy All unoccupied lease space, either direct or sublease.

Sublease Space Total square footage being marketed for lease by the tenant. Sublease space is not considered in the overall occupancy or absorption numbers - only direct leases are included.

SF/PSF Square foot/per square foot, used as a unit of measurement.

Sublease Vacancy Space currently available in the market for sublease with an existing tenant within a building acting as the landlord.

Some of the data in this report has been gathered from third party sources including CoStar Group, Inc. and has not been independently verified by NAI Earle Furman, LLC. NAI Earle Furman, LLC makes no warranties or representations as to the completeness or accuracy thereof. All rents are per SF/per YR unless otherwise noted. Construction is defined as total RBA under construction. The Upstate Market is defined by: Greenville, Anderson, Spartanburg, Cherokee and Pickens counties. All Industrial building types are included, including warehouse, flex / research & development, distribution, manufacturing, industrial showroom, and service buildings, in both single-tenant and multi-tenant buildings, including owner-occupied buildings.

NAI Earle Furman, LLC | 101 E. Washington Street, Suite 400 | Greenville SC 29601 864 232 9040 | www.naiearlefurman.com


Upstate in the News

“Unique Spec Building Breaks Ground in Laurens County”

GSA Daily Staff Report June 30, 2009 A speculative building in Laurens County broke ground today that could provide up to 100,000 square feet of industrial space. Located in the Laurens County Hunter Industrial Park, the building’s concept is unique in that it will allow end users and site consultants to create a fully customizable building that has the potential to be built out in 120 days. The Hunter Virtual Spec Industrial Building, which has been engineered by Warren & Associates Design-Build LLC, offers 50,000 square feet of industrial space. An additional 50,000-square-foot pad is also in place. Laurens County economic development leaders anticipate that the flexibility and versatility of the building will be more appealing to potential businesses looking at the Upstate for relocation or expansion. “In developing the Hunter Virtual Spec Building, we are preparing a site that can be completely customized to any business’ exact specifications,” said Marvin Moss, executive director of Laurens County Development Corp. “With the site’s convenient location and direct access to I-385, we anticipate that this investment will pay off considerably for Laurens County’s economic future.” Hunter Industrial Park is a half-hour drive to GSP International Airport and 180 miles from the Port of Charleston. The Laurens Commission of Public Works will supply utilities. The city of Laurens fire department will provide fire protection. “Our county and Laurens CPW has made a significant investment in the Hunter Virtual Spec Building, but we are proud to know it is the only one of its kind in our state – and expect great things to come from our forward-thinking decision to go the route of a virtual spec building,” said Laurens County Council Chairman Jim Coleman. “Today’s technology and economic climate demand us to be creative in setting our communities apart from other areas. Going this route is less expensive and aids in demonstrating the potential to the end-user. The result is a win-win with economic benefits for the potential company for the citizens of the Upstate region.” Hal Johnson, president and CEO of Upstate SC Alliance, praised Moss and his team for being creative in economic development. “Hunter Virtual Spec Building is their latest example, and with technology driving this industry it will pay off in the long run,” Johnson said.

Copyright (c) GSA Business. All rights reserved.

NAI Earle Furman, LLC | 101 E. Washington Street, Suite 400 | Greenville SC 29601 864 232 9040 | www.naiearlefurman.com


Upstate in the News “Pickens to Welcome Tri Tech�

The Greenville News - June 9, 2009 By Julie Howle Staff Writer A beam signing is planned for Friday at Tri Tech USA Inc., a company that is coming to Pickens County and bringing jobs and millions of dollars in investment with it. Tri Tech USA, which has been based in South Burlington, Vt., announced in December that it was relocating its headquarters and manufacturing operations to Pickens County in a move that is expected to bring 40-55 jobs and a $4 million investment over five years. The advanced manufacturing company will become a part of the Pickens County Commerce Park in a facility of around 41,000 square feet, said Ray Farley, executive director of Alliance Pickens. He said the beam-signing ceremony is planned for 9:30 a.m. at the site at the Pickens County Commerce Park. "The structural steel is going up in the air," Farley said, describing how officials will sign one of the key structural beams that will be used to support the building. He said the building could be complete by September. "Tri Tech USA brings with it approximately 50 jobs that we currently do not have," Farley said. "These are going to be good-paying jobs with good benefits." The company manufactures commercial-grade mobile kitchen units for the U.S. military and metal components used in a variety of industries, including automotive, aerospace, pharmaceutical, food processing and furniture, according to owners Joe and Linda Bacigalupo. Joe Bacigalupo has said jobs range from machinists, welders and fabricators to electricians, engineers and assembly personnel.

Copyright (c) Greenville News. All rights reserved.


Contact Us For more information on the Upstate Industrial market please contact one of our specialists:

John Baldwin Broker jbaldwin@naiearlefurman.com

Glenn Batson Broker gbatson@naiearlefurman.com

Hunter Garrett, CCIM, SIOR Principal & Broker hgarrett@naiearlefurman.com

Jon Good, SIOR Principal & Broker jgood@naiearlefurman.com

Jerome K. Jay Broker jkjay@naiearlefurman.com

Ford Borders, SIOR Principal & Broker fborders@naiearlefurman.com

J. Earle Furman, Jr., SIOR Principal & Broker-in-Charge efurman@naiearlefurman.com

Michael Greer, CCIM, SIOR Broker mgreer@naiearlefurman.com

Grice Hunt Broker grice@naiearlefurman.com

Clay Mardre Broker claym@naiearlefurman.com

Tyson Smoak Broker tsmoak@naiearlefurman.com

Dave Reeves Principal & Broker dreeves@naiearlefurman.com

John Staunton Broker john@naiearlefurman.com

NAI Earle Furman, LLC | 101 E. Washington Street, Suite 400 | Greenville SC 29601 864 232 9040 | www.naiearlefurman.com


Additional Resources www.naiearlefurman.com – Complete listings of NAI Earle Furman’s available properties www.greenvilleeconomicdevelopment.com – Greenville Economic Development’s goal is to promote and enhance the economic growth of Greenville County by serving as the single source contact for economic development in the greater Greenville area. www.upstatealliance.com – Upstate Alliance is a public/private regional economic development organization designed to market the dynamic 10-county Upstate region to the world. www.greenvillechamber.org - The Greater Greenville Chamber at its core is dedicated to promoting quality development of Upstate South Carolina through managed growth, service to members and the public, and a community-wide approach to issues shaping the region's future. www.spartanburgcounty.org – Official website of Spartanburg County government www.greenvillecounty.org – Official website of Greenville County government www.andersonsccounty.org - Officical website of Anderson county government www.sccommerce.com - Provides information on trade, grants, rural development, and recycling. Includes databases of community profiles, labor market information, etc.. www.sciway.net - South Carolina's Information Highway is the largest directory of South Carolina information on the Internet. www.southcarolinapowerteam.com - The South Carolina Power Team promotes industrial sites & industrial buildings in South Carolina and the state's unique advantages for industry.

NAI Earle Furman, LLC | 101 E. Washington Street, Suite 400 | Greenville SC 29601 864 232 9040 | www.naiearlefurman.com


Industrial Market Report