News Summary
The commercial real estate sector in Upstate South Carolina is experiencing robust growth driven by population increases and economic investments. Despite thriving project development, the region faces challenges in the labor market, with a shortage of skilled workers affecting progress. The construction sector currently employs over 35,000 individuals and has competitive labor challenges exacerbated by rising costs. Companies proactively seek to fill critical roles while also nurturing internal talent to cope with the demands of ongoing projects and future growth.
Upstate South Carolina continues to experience strong demand within its commercial real estate sector, driven by a blend of population growth and significant economic investments. As ongoing projects flourish—ranging from small mixed-use developments to expansive industrial facilities—industry leaders emphasize the need to address challenges, particularly regarding the local labor market. The region’s construction activity remains buoyant, despite facing a tight labor pool that is struggling to keep pace with increasing project needs.
According to figures, Upstate South Carolina’s commercial real estate sector is thriving, supported by robust growth in various economic areas. The construction sector employs approximately 35,113 people and offers an average annual wage of $85,109. Mixed-use developments are particularly popular in metropolitan areas like Greenville and Spartanburg, where they contribute positively to the local economy and provide a sense of community.
Despite this upward trajectory, the local construction labor market has become highly competitive, largely due to heightened development activity. Industry representatives note that the shortage of skilled tradespeople presents a significant barrier. Many experienced workers are retiring, and the number of retirees is currently surpassing the influx of new entrants into the workforce. Nationwide, projections indicate that 439,000 new construction workers will be required by 2025, followed by another 499,000 by 2026, highlighting a substantial labor gap that is mirroring trends in Upstate South Carolina.
Challenges in labor acquisition extend beyond simple availability; rising construction costs and increased competition for space exert additional pressure on development timelines. Approximately 60% of local subcontractors have reported increasing labor costs due to these market conditions, while 40% are hesitant to raise rates, opting instead to maintain existing rates in order to secure contracts.
Firms such as Scout Mechanical are actively seeking skilled trade professionals, with about one-third of their workforce consisting of employees who relocated from outside the region. Recruitment efforts focus not only on trades but also on filling critical roles in project management and field leadership, which are essential for steering projects effectively.
In response to the labor shortage, some companies take proactive approaches toward talent development. For instance, Caldwell Constructors emphasizes nurturing internal talent and frequently sources candidates through referrals and targeted recruitment campaigns. Similarly, Harper General Contractors collaborates with vocational programs and technical schools, maintaining an internship program that currently involves over 50 participants, which serves as an essential pipeline for new talent.
With the average age of construction workers in the U.S. currently at 42 years, the industry is witnessing a shift as younger workers gradually enter the field. Despite the influx of new talent, the labor gap remains concerning, as evidenced by ongoing project demands outpacing the available workforce.
The commercial real estate landscape in Upstate South Carolina remains promising overall, supported by a healthy industrial sector characterized by high demand and low vacancy rates. Nevertheless, as the construction industry grapples with rising costs and the pressing need for skilled labor, leaders within the sector have recognized the importance of adapting recruitment strategies to sustain growth. The ongoing development projects and the future of Upstate South Carolina’s commercial real estate sector depend greatly on the successful recruitment and retention of a capable workforce to meet the evolving demands of the market.
Deeper Dive: News & Info About This Topic
- Upstate Business Journal: Q&A with Audrey Frey
- Bisnow: Upstate South Carolina State of Commercial Real Estate
- Upstate Business Journal: What’s Rising Across the Upstate
- Greenville Business Magazine: Colliers South Carolina Welcomes William Makepeace
- JLL: Sale of Luxury Multi-Community Water Tower Apartments
- Wikipedia: Commercial Real Estate
- Google Search: Upstate South Carolina commercial real estate
- Google Scholar: Upstate South Carolina construction labor market
- Encyclopedia Britannica: Real Estate
- Google News: commercial real estate Upstate South Carolina
