Stable market activity attracts investors and tenants demonstrate requirement for modern space
October 26, 2016
CBRE Research has released the Q3 2016 data on the office commercial real estate market in the Columbia market.
The Columbia office market is still exhibiting growth with 14 consecutive quarters of positive absorption. In the same time frame, vacancy has risen due to the delivery of new product. The two most prominent include the new First Base Building and the Innovation Center in the CBD totaling 215,000 sq. ft. of Class A office space.
Asking rates have hit record highs for each of the last four quarters at both the market and CBD submarket levels, with the CBD submarket rising by 22% in the last three years. This combination of activity raises Columbia’s investment profile. As an example, one of the highlights of quarter is the sale of the Ameris Bank Building, a 200,000 sq. ft. Class B office building in the CBD, to Boston based Albany Road Real Estate Partners.
Columbia office tenants are demonstrating a willingness to pay more for premium space in order to attract and retain talent. While this impacts Class A office space in the CBD, it also opens opportunity for landlords of Class B and suburban properties to lift rates as well. The lack of new product in the pipeline, coupled with tenants’ increasing need for modern space, present an opportunity for value-add investors with capital to upgrade existing product.
The following are highlights of the report:
Office
• Ameris Bank building purchased by Boston-based Albany Road Real Estate Partners
• Market growth and stability attracting new investors to the market
• Rent growth is moderating
• Dynamic downtown is helping tenant to attract and retain talent
• Bull Street to be a hub of activity over the next 10 years
For more information, visit www.cbre.com/columbia.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
