Colliers Report: Record absorption moves vacancy to its lowest recorded level
July 17, 2023
Commercial Real Estate Research & Forecast Report
Q2 2023 Columbia Industrial
Market Highlights
Continued demand for industrial space coupled with high leasing velocity moved the vacancy rate to 2.4% – the lowest level on record and the lowest of the three major markets in South Carolina. This occurred in spite of 1.2 million square feet of deliveries. Absorption was largely driven by manufacturers and third-party logistics providers (3PLs), most of which are new to market. Manufacturers continue to seek additional space to support their local operations and for facilities with sufficient power to expand their production capabilities.
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Key Takeaways
- Vacancy reaches a record low of 2.4%
- Demand for space continues to outpace supply
- Manufacturing activity driving market demand
- Rental rates continuing to rise
Looking ahead
Third-quarter leasing activity should continue to be strong with tenants continuing to pursue opportunities in Columbia due to the proximity to the Port of Charleston, interstate connectivity and labor availability. The largest constraint on the market is available product which will continue to push rents upwards.
About Colliers
Colliers | South Carolina is the largest full-service commercial real estate firm in South Carolina with 62 licensed real estate professionals covering the state with locations in Charleston, Columbia, Greenville and Spartanburg. Colliers 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 over 18 million square feet of office, industrial, retail and healthcare properties. Colliers’ staff hold the most professional designations 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 (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 65 countries, our 18,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. With annual revenues of $4.5 billion and $98 billion of assets under management, Colliers maximizes the potential of property and real assets to accelerate the success of our clients, our investors and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn.
