CBRE announced today that Phase 1 of the Apple Valley Industrial Park in Duncan, S.C., is now 100% leased, with the recent commitment of more than 75,000 sq. ft. by an automotive supplier. The tenant leased space in the same industrial park two years ago. CBRE's Marcus Cornelius and Broadstreet Partners' Ryan Koop represented Panattoni in the lease transaction.
Panattoni Development has broken ground on Phase 4 of the industrial park, with construction expected to be completed by the first quarter of 2020. Phase 4 includes two speculative buildings - approximately 195,000 sq. ft. and 327,670 sq. ft. The completion of Phase 4 will bring the Apple Valley Industrial Park to a total of six buildings with just over 1.4 million sq. ft.
Apple Valley Industrial Park represents a mixture of build-to-suit and speculative development. It is conveniently located in the Spartanburg West submarket, less than two miles from Interstate 85 and approximately five miles from the inland port. The success of the inland port has led to large speculative developments in the market being quickly absorbed, establishing a new expectation for investors and developers.
"Speculative development demand in and around the Greenville-Spartanburg area remains strong, but the real key to success is location," Cornelius said. "The proximity to BMW, the inland port, and key infrastructure, along with high-quality building features, make Apple Valley Industrial Park extremely attractive and a proven success for Panattoni and the overall market. We are very proud to say that since construction began on Phase I in fall of 2017, the four completed buildings, totaling 884,000 sq. ft. are fully leased to a mix of high-quality tenants from different industry sectors."
According to CBRE research, over the last four years the Greenville-Spartanburg market has averaged more than 250,000 sq. ft. of speculative absorption per quarter, and that number has escalated to more than 400,000 sq. ft. per quarter since the start of 2018.