Spartanburg Commercial Real Estate Market
Spartanburg's commercial real estate market is defined by its extraordinary concentration of international manufacturing. Over 100 companies from 25+ countries maintain operations in Spartanburg County, creating an industrial ecosystem built around advanced manufacturing, automotive supply chain, and specialty chemicals. BMW's plant — producing over 400,000 vehicles annually in the Greer corridor — anchors this ecosystem, but the breadth of manufacturing diversity means Spartanburg's industrial demand is not dependent on any single company or sector.
Beyond manufacturing, Spartanburg is diversifying through healthcare (Spartanburg Medical Center, part of Spartanburg Regional), higher education (Wofford College, Converse University, USC Upstate), and downtown revitalization centered on Morgan Square. The Morgan Square district has attracted restaurants, breweries, and creative businesses that are beginning to reshape Spartanburg's commercial identity beyond its manufacturing roots. Medical office demand along the Church Street medical corridor and near Spartanburg Medical Center provides a stable healthcare anchor.
Spartanburg's cap rates run 75 to 150 basis points above neighboring Greenville, offering investors stronger yields while sharing the same I-85 corridor logistics infrastructure and BMW supply chain access. This yield differential attracts investors who recognize that Spartanburg's manufacturing fundamentals are among the strongest in the state — they simply haven't been repriced to Greenville's level due to Greenville's superior downtown brand. For sellers, this creates an opportunity to capture competitive offers from yield-focused investors while the market's repricing catches up to its fundamentals.
Top Property Types in Spartanburg
Industrial & Manufacturing
Spartanburg's manufacturing concentration creates industrial demand that is both deep and diversified. BMW's supply chain, Milliken & Company's specialty chemicals, and over 100 international manufacturers need production space, warehouse, and distribution facilities throughout the I-85 corridor and the US-29 industrial zone. Properties with heavy power, adequate floor loads for manufacturing equipment, truck court access, and proximity to I-85 trade most competitively. Spartanburg's industrial market offers stronger yields than Greenville while sharing the same automotive supply chain dynamics.
Retail & Downtown
Spartanburg Regional Healthcare System operates the county's major hospital and generates sustained medical office demand along Church Street, Pine Street, and the Boiling Springs medical corridor. The system's ongoing campus investment and expansion of outpatient services create new demand for medical-adjacent properties. Multi-tenant medical buildings near the hospital attract both physician-investors and regional healthcare REITs. The aging upstate population amplifies healthcare utilization rates, supporting long-term medical office demand growth across the Spartanburg market.
Office & Flex
Morgan Square's revitalization is creating early-stage demand for downtown retail, restaurant, and entertainment properties that mirrors Greenville's Main Street transformation a decade ago. Restaurants, breweries, and creative businesses are establishing presence in the downtown core, attracting investment from entrepreneurs and real estate investors who see parallels to Greenville's successful downtown model. Properties with Morgan Square proximity, character architecture, and first-floor retail potential represent the highest appreciation opportunity in the Spartanburg market.
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