Columbia’s strong office market fundamentals expected to increase landlord confidence and investment activity
February 14, 2017
CBRE Research has released the Q4 2016 data on the office commercial real estate market in Columbia.
Columbia has exhibited positive absorption for the 16th consecutive quarter displaying consistent and stable growth fueled by government and university activity. Modest asking rates are expected to remain near the current average of $16.79 per sq.ft. on a full service basis until vacancies become tighter, especially since no new office construction is in the pipeline.
The lack of new product in the pipeline benefits current landlords and owners, who already have product available. It would not be surprising to see larger rent growth opportunity among Class B product, particularly in the CBD.
With Columbia’s strong market fundamentals and stable employment numbers, expect to see a continued increase in investment activity. This quarter was highlighted by a four-property transaction at the Westpark Center in the St. Andrews submarket, which totaled over 96,000 sq. ft. sold for $9 million.
Though Columbia has the land and resources to provide room for long-term growth, new development is unlikely to follow the 105,000 sq. ft. First Base Building and the 110,000 sq. ft. Innovation Center delivered last year, since downtown’s available space has the ability to accommodate years of absorption.
The following are highlights of each report.
Office
• Market stability continues to attract new investors
• Downtown attracts new talent and tenants
• Rent growth has slowed, with no new office product in the pipeline
• Bull Street will continue to grow over next 10 years
For more information, visit https://auth.cbre.us/o/columbia/Pages/market-reports.aspx
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.
