Colliers Columbia Industrial Report: New Class A leasing highlights undersupply
January 28, 2025Commercial Real Estate Research & Forecast Report
Q4 2024 Columbia Industrial
Market Highlights
The Columbia market saw 376,265 square feet of new Class A leases in Q4, a testament to the mounting pressure on the market’s limited Class A availability as the pipeline remains devoid of speculative construction. New vacancies were heavily concentrated in functionally obsolete buildings in outlying submarkets, while well-located and modernized properties continue to experience minimal vacancy.
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- New construction starts are needed in the first half of 2025 to meet Scout Motors supplier demand
- Users seeking 100,000+ square foot or more of Class A space have few remaining options
- Class A rents continue to rise due to demand pressure against limited supply
Looking ahead
With Scout Motors on track to begin production in 2027, supplier demand is exacerbating the market’s inventory challenges. The Q4 delivery of the 519,792 SF Sandy Run spec building has been met by intense interest as the market’s largest available cross-dock property comprises 15% of all vacancy. Investors continue to seek value-add opportunities in an inventory-limited market, highlighted by $45.5M of investment sales focused on warehouses in the market’s core.
About Colliers
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