Colliers Columbia Industrial Report: Year over year improvement creates positive outlook for 2024
January 17, 2024
Commercial Real Estate Research & Forecast Report
Q4 2023 Columbia Industrial
Market Highlights
Columbia finished 2023 with a 4.08% increase in inventory for the year, a 24.77% increase in average lease rates to $5.71 per square foot and 2,629,950 square feet of net absorption from the fourth quarter of 2022. Vacancy remained under 4% for the past year but increased to 4.12% this quarter driven by the delivery of 506,000 square feet. Absorption is expected to increase in the first quarter of 2024, lowering vacancy.
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Key Takeaways
- Deliveries, net absorption and average lease rates increased from Q4 2022
- Vacancy increased following the delivery of 506,000 square feet
- Construction pipeline remains strong through 2024
Looking ahead
The construction pipeline consists of 1,298,932 square feet with an evenly spaced delivery timeline, allowing the market to maintain consistent growth throughout 2024. However, new speculative construction starts in 2024 for delivery in 2025 will be important for Columbia to maintain its rate of industrial growth. The stabilizing interest rate environment, year over year performance improvement and continued user demand is expected to create additional opportunities in 2024.
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 22.5 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..
