Colliers International releases first quarter 2019 market snapshots for Columbia
April 2, 2019
Colliers International | South Carolina has released a snapshot of its first quarter preliminary data for the office, industrial and retail markets in Columbia.
Office market
Despite negative absorption and rising vacancy rates, the Columbia office market is still attractive due to the city’s business climate, employment, regional investments and strong market drivers. The Columbia office posted a net negative absorption of 115,135 square feet overall; while the central business district posted a net negative absorption of 49,330 square feet this quarter, the suburban office markets posted a net negative absorption of 65,805 square feet. The differential between rising construction costs and rental rates is not economically viable for new office development. The average weighted rental rates for remaining office availabilities in Columbia increased to $17.73 per square foot during the first quarter of 2019 due to some higher quality space becoming available.
Market statistics
| Change from Q4 2018 | ||
|
16,213,712 SF | — |
|
-115,135 SF | — |
|
11.83% | Higher by 73 basis points |
|
$17.73 | Higher by 2.13% |
Columbia CBD statistics
| Change from Q4 2018 | ||
|
-49,330 SF | — |
|
11.45% | Higher by 87 basis points |
|
$20.85 | Higher by 0.63% |
Columbia suburban statistics
| Change from Q4 2018 | ||
|
-65,805 SF | — |
|
12.03% | Higher by 65 basis points |
|
$16.48 | Higher by 2.81% |
Industrial market
The Columbia industrial market demand is on the rise as South Carolina becomes an important industrial hub. The market absorbed 413,830 square feet during the first quarter of 2019 and the vacancy rate decreased from last quarter. The overall market vacancy rate dropped to 6.99%; the average weighted rental rates are $3.74 per square foot. The rental rates are likely lower this quarter due to the lack of quality of the few remaining industrial spaces remaining in the market.
Market statistics
| Change from Q4 2018 | ||
|
69,735,593 SF | — |
|
413,830 SF | — |
|
6.99% | Lower by 94 basis points |
|
$3.74 | Lower by 3.11% |
Columbia flex/R&D statistics
| Change from Q4 2018 | ||
|
31,133 SF | — |
|
12.47% | Lower by 131 basis points |
|
$7.74 | — |
Columbia manufacturing statistics
| Change from Q4 2018 | ||
|
87,812 SF | — |
|
8.90% | Lower by 38 basis points |
|
$2.86 | Lower by 12.27% |
Columbia warehouse statistics
| Change from Q4 2018 | ||
|
294,885 SF | — |
|
5.68% | Lower by 123 basis points |
|
$3.89 | Higher by 2.11% |
Retail market
Once again, retail activity within the non-core Columbia submarkets outperformed core retail spaces during the first quarter of 2019. Non-core retail space absorbed 90,068 square feet; overall, the Columbia retail market absorbed 25,118 square feet. Columbia retail rental rates were considerably higher in non-core retail space during this quarter for the remaining availabilities. No new retail construction was delivered to the Columbia retail market during the first quarter of 2019.
Market statistics
| Change from Q4 2018 | ||
|
13,348,853 SF | — |
|
25,118 SF | — |
|
10.51% | Lower by 19 basis points |
|
$15.15 | Higher by 5.94% |
Columbia core statistics
| Change from Q4 2018 | ||
|
-64,950 SF | — |
|
6.85% | Higher by 105 basis points |
|
$19.19 | Lower by 7.52% |
Columbia non-core statistics
| Change from Q4 2018 | ||
|
90,068 SF | — |
|
13.68% | Lower by 126 basis points |
|
$13.28 | Higher by 9.12% |
Full market reports will be provided in the coming weeks with extensive, final data and more analysis. To receive these reports automatically via email, sign up on colliers.com.
About Colliers International
Colliers International | South Carolina has over 140 staff members, including 60 real estate professionals, covering the entire state with locations in Charleston, Columbia, Greenville andSpartanburg. Total 2018 brokerage volume exceeded $577 million, which included over 505 sales and leasing transactions. In addition to traditional commercial real estate representation services for our clients, the company is actively engaged in Corporate Solutions and Healthcare Services. Colliers International is an Accredited Management Organization (AMO) through the Institute of Real Estate Management (IREM) and is the largest manager of commercial real estate properties in South Carolina, with a portfolio of nearly 12 million square feet of office, industrial, retail and healthcare properties. Colliers International’s staff holds 46 professional designations, the most of any firm in South Carolina. Colliers | South Carolina’s partner, LCK, provides project management services for new facilities and renovations across South Carolina.
Colliers International (NASDAQ, TSX: CIGI) is a leading global real estate services and investment management company. With operations in 68 countries, our 14,000 enterprising people work collaboratively to provide expert advice and services to maximize the value of property for real estate occupiers, owners and investors. For more than 20 years, our experienced leadership team, owning more than 40% of our equity, have delivered industry-leading investment returns for shareholders. In 2018, corporate revenues were $2.8 billion ($3.3 billion including affiliates), with more than $26 billion of assets under management. Learn more about how we accelerate success at corporate.colliers.com, Twitter @Colliers or LinkedIn.
