Colliers Columbia Industrial Report: Vacancy drops with uptick in activity and developer interest
April 24, 2024
Commercial Real Estate Research & Forecast Report
Q1 2024 Columbia Industrial
Market Highlights
Leasing activity was slower in the first quarter of 2024, however, tenant activity surged, creating optimism for a strong second quarter. Net absorption remained healthy with positive 119,043 square feet, while total inventory remained flat, dropping vacancy to 3.13%. Vacancy was primarily found in lower-quality product which reduced the overall lease rate to $5.68 per square foot, however, the 1,298,932 square feet under construction will increase average market rates upon delivery.
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Key Takeaways
- Significant supply and demand imbalance creates optimism for deliveries of new product and 2025 development cycle
- Scout Motors related activity is beginning to emerge
- Renewable energy manufacturing and foreign direct investment activity remains high
Looking ahead
Prospect activity was high in the first quarter of 2024, building on the discrepancy between supply and demand and additional interest from Scout Motors suppliers. This stable industrial performance and low vacancy in Columbia have continued to attract new developers, generating optimism for the 2025 development cycle.
About Colliers
Colliers | South Carolina is the largest full-service commercial real estate firm in South Carolina with 66 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 23 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 66 countries, our 19,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. With annual revenues of $4.3 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, X @Colliers or LinkedIn.
