NAI MEMBER NAME. NAI Earle Furman, LLC. Retail Office Report First Quarter

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1 NAI MEMBER NAME NAI Earle Furman, LLC Retail Office Report First Quarter

2 Upstate Market TRENDS: Vacancy Rate Net Absorption UPSTATE STATISTICS: Number of Buildings...8,697 Market Size (SF)...79,43,17 Overall Vacancy Space (SF)...5,796,566 Overall Vacancy (%)...7.3% Direct Vacancy (SF)...5,672,269 Sublease Vacancy (SF)...124,297 Net Absorption...279,687 Average Asking Rental Rate ($/SF/YR)...$ % 8.% 7.5% 7.% 6.5% 6.% $11. $1.5 Overall Vacancy (%) 4Q9 1Q1 2Q1 3Q1 4Q1 1Q11 Average Asking Rental Rate Construction FIRST Quarter MARKET OVERVIEW: By: Harry Croxton NAI Earle Furman Retail Division $1. $9.5 $9. 4Q9 1Q1 2Q1 3Q1 4Q1 1Q11 Asking Rents The Greenville/Spartanburg retail market continued to build on the positive momentum begun in late 21. Vacancy rates have continued their downward trajectory, ever so slightly, while net absorption increased after several quarters of negative growth. Small shop space, primarily led by local retailers, is beginning to back-fill vacant storefronts, while some big box vacancies, such the former Linen s N Things at The Shops at Greenridge, have been given new life by retailers such as BuyBuy Baby. While positive, the increased occupancy rates have not yet made a noticeable impact on lease rates which remain low. For the first time in recent memory, construction activity is on the rise. Some larger projects, such as Easley Town Center (535, SF) continue to develop, while several new announcements in Greenville s downtown are bringing construction activity back to the city center. RiverWalk (9, SF) and a CVS anchored mixed-use project (36, SF) are two notable projects currently under construction. While the overall market remains challenging - the outlook, while still tentative, seems to be pointing in a positive direction. Top Lease Transactions Tenant: Property Type: Size (SF): Address: Toys R US Neighborhood Center 22,5 SF 158 WO Ezell Blvd, Spartanburg Family Dollar Neighborhood Center 9,527 SF N Main St, Anderson J. Peters Restaurant Freestanding 8,4 SF 15 Market Point Drive, Greenville N/A Strip Center 7,5 SF 329 Wade Hampton Blvd, Taylors Leslie s Pools Neighborhood Center 5, SF Fairview Rd, Simpsonville Top Sale Transactions Buyer: Property Type: Size (SF): Address: Walgreens Freestanding 14,82 SF 2586 Woodruff Road, Greenville Walgreens Freestanding 14,86 SF 2196 E Main Street, Duncan 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. NAI Earle Furman, LLC 11 East Washington Street, Suite 4 Greenville SC 2961

3 NAI Earle Furman, LLC Retail Report First Quarter 211 SUBMARKET/ # BLDGS. TOTAL RBA TOTAL AVAIL. TOTAL VACANT TOTAL NET TOTAL AVERAGE UNDER CLASS (SF) (SF) AVAIL (%) Absorption (SF) RATE ($/SF/YR) CONSTRUCTION (SF) Anderson/Pickens 1,839 18,16,459 1,834, % 239,729 $8.5 28,8 Greenville 3,648 34,71,64 3,193,61 6.8% 48,958 $ , Travelers Rest/ 391 3,281,77 34,82 6.4% 11,29 $7.43 Cherrydale Wade Hampton 449 4,28, , % 3,543 $8.49 West Greenville 628 4,78, , % (4,495) $9.98 Pelham Rd ,496, , % 36,42 $12. I-385/Woodruff Rd ,679,593 34, % 4,17 $13.39 Mauldin 191 1,798, ,29 3.3% (7,479) $9.63 Fairview Rd ,483, ,7 5.6% (28,142) $9.95 South Greenville 253 1,419,11 134, % (2,38) $6.34 Stone Ave/ ,162 16, % 1,84 $7.7 E. North St. Greenville CBD 96 79,978 56, % (1,176) $ , Pleasantburg Dr ,195, , % (17,887) $11.35 Augusta Rd ,681, , % 6,241 $11.64 Haywood/Congaree 412 7,33, , % 21,183 $13.98 & Woodruff Corridor Spartanburg 2,865 23,162,679 2,88,666 7.% (28,55) $1.2 Upper Spartanburg 732 4,245, ,99 7.% 5,723 $6.24 East Side 1,14 9,188, , % (36,98) $11.42 West Side 611 7,94,833 76,27 7.1% 11,898 $1.61 Lower Spartanburg 48 2,633, ,75 7.% (9,263) $7.22 NAI Earle Furman, LLC 11 E. Washington Street, Suite 4 Greenville SC 2961

4 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. 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 198, quality tenants, excellent amenities & premium rates. Class B product is office space built after 198, fair to good finishes & wide range of tenants. Direct Vacancy Space currently available for lease directly with the landlord or building owner. Market Size 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. Overall Vacancy All unoccupied lease space, either direct or sublease. SF/PSF Square foot/per square foot, used as a unit of measurement. West Greenville Travelers Rest/Cherrydale Midtown Uptown 15.3 million SF vacant 4.13% vacancy East rate Side & Hwy 9 $54.14 SF/YR avg. rental Wade Hampton Pelham Rd 4.88 million SF vacant Mauldin 4.7% vacancy rate Fairview Road $37.53 SF/YR avg. rental S. Greenville I-385/ Woodruff Rd Anderson Downtown 11.3 million SF vacant 4.o% vacancy rate $42.3 SF/YR avg. rental Upper Spartanburg West Side Greenville CBD Augusta Road Lower Spartanburg Stone Ave/E. North St. S. Pleasantburg Road N. Pleasantburg Road Haywood/ Congaree & Woodruff Rd. Corridor Sublease Arrangement in which a tenant leases rental property to another, and the tenant becomes the landlord to the subtenant. 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. Sublease Vacancy Space currently available in the market for sublease with an existing tenant within a building acting as the landlord. NAI Earle Furman, LLC 11 E. Washington Street, Suite 4 Greenville SC 2961

5 Upstate in the News Men s Journal: Greenville among best places to live in United States GSA Business Staff Report Published March 1, 211 Upstate Forever and the Next Innovation Center received special mention in a brief description of the city of Greenville by Men s Journal magazine. Greenville is one of 18 cities listed in the national lifestyle magazine s Best Places to Live 211 guide. Booming Greenville has a lot to beat its chest about, the magazine states under the headline, Grow the Right Way. Greenville, S.C. Men s Journal cited the city s redeveloped, pedestrian friendly downtown, along with Fluor Field, the free trolley service, a zealous cycling community and group called Upstate Forever that keeps a watchdog s eye on open space and clean waterways. But the most telling recent development is the Next Innovation Center, where tech start-ups, entrepreneurs and even angel investors rent and share space, coffee and brainpower, Men s Journal continued. The creative vibe here is so strong that walls are covered with writable surfaces so eurekas can get scribbled down anywhere, anytime. The 6,-square-foot Next center, off Church Street downtown, was a collaboration by the Greenville Chamber of Commerce, the city of Greenville, Hughes Development Corp. and Next LLC. It opened in 29. Cities to join Greenville on Men s Journal s list are Durango, Colo.; Sarasota, Fla.; Des Moines, Iowa; Memphis, Tenn.; Fargo, N.D.; Northampton, Mass.; Huntsville, Ala.; Minneapolis; Frisco, Texas; Grand Rapids, Mich.; Portsmouth, N.H.; New Orleans; Jacksonville, Ore.; San Luis Obispo, Calif.; Louisville, Ky.; Philipsburg, Mont.; and Flagstaff, Ariz. These 18 towns are perfecting the art of living well places where conservation is more important than development, bike makers and breweries and farmers markets thrive, and Whole Foods is considered a big-box store, Men s Journal said. NAI Earle Furman, LLC 11 E. Washington Street, Suite 4 Greenville SC 2961

6 Upstate in the News Walmart Finishes Construction in Easley GSA Business Staff Report Published March 18, 211 Walmart will begin relocating to its new Easley location at 115 Rolling Hills Circle in preparation for an April grand opening. The retailer recently completed construction at the site and will spend the few weeks transforming the new building to feature the company s next generation of store design and customer experience. Walmart is relocating from 123 S. Pendleton St. to provide a one-stop shopping destination where customers can find a wider selection of merchandise, including a full line of groceries. That location opened in We are excited about the new products and services we will be able to offer our customers, said Lee Jolly, store manager. We ve been fortunate to have a loyal customer base and we look forward to providing an improved shopping experience. After the move, the store plans to employ approximately 4 associates, including 2 positions created by the relocation. Many of the newly hired associates are now reporting to work to help prepare the store for its grand opening.

7 Upstate in the News New Restaurant to Open at The Point GSA Business Staff Report Published Feb. 11, 211 The former Azia restaurant near the Shops at The Point in Greenville will be transformed into a new restaurant concept Feb. 15, owned and operated by new owner Jonathan Peter Angell. J. Peters Grill and Bar will occupy the 8,4-square-foot space. This will be Angell s third restaurant, joining two locations in Anderson at 22 S. Main St. and 115 Clemson Boulevard. What I have learned over the years is that you don t have to sacrifice quality to provide a good value, Angell said. The portions are huge, and the quality of food is phenomenal. J. Peters features a variety of appetizers, entree salads and sandwiches, steaks, pasta dishes, chicken and seafood. The former Azia restaurant, which opened in 27, was a sushi and Asian fusion concept owned by Peter Lieu, who still owns Lieu s Chinese Bistro at 1149 Woodruff Road in Greenville. Patrick Van Every, who was a partner in Azia, has served as a senior account executive at Wastequip since February 29. John Gray of NAI Earle Furman LLC recently represented the landlord of the property at 15 Market Point Drive. NAI Earle Furman, LLC 11 E. Washington Street, Suite 4 Greenville SC 2961

8 Contact Us For more information on the Upstate Retail market please contact one of our specialists: Jimmy Wright Principal and Harry Croxton Renee Dunlap Ted Lyerly, CCIM Tim Roller (Anderson Area) Bill Sims Jake Van Gieson NAI Earle Furman, LLC 11 E. Washington Street, Suite 4 Greenville SC 2961

9 Additional Resources Complete listings of NAI Earle Furman s available properties 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. Upstate Alliance is a public/private regional economic development organization designed to market the dynamic 1-county Upstate region to the world. - 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. Official website of Spartanburg County government Official website of Greenville County government - Official website of Anderson county government - Provides information on trade, grants, rural development, and recycling. Includes databases of community profiles, labor market information, etc South Carolina's Information Highway is the largest directory of South Carolina information on the Internet. NAI Earle Furman, LLC 11 E. Washington Street, Suite 4 Greenville SC 2961