Colliers Columbia Office Report: Healthy first quarter highlights post-Covid momentum
April 2, 2025
Commercial Real Estate Research & Forecast Report
Q1 2025 Columbia Office
Market Highlights
The Columbia office market defied a multi-year pattern of slow first quarters, posting 126,115 square feet of net absorption in a sign of continuing momentum as vacancy is nearly 14% lower than a year prior. The quarter’s activity was headlined by the SC Department of Natural Resources’ move into a new 65,000-square-foot building in the Cayce/West Columbia submarket, while Palmetto Citizens FCU broke ground on a new 104,000-square-foot downtown headquarters in another indicator of strong interest in the CBD.
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Key Takeaways
- A fourth consecutive quarter of positive absorption and growing rents continued the market’s momentum
- Clean energy and professional services tenants active as private sector activity is increasing
- Reinvestment in properties has proven lucrative for owners
Summary
The market continues to see interest growing from the clean energy and professional services sectors with multiple new leases in each sector highlighting an existing regional talent base. While this interest has pushed rents somewhat higher, overall inventory limitations will put a soft cap on Class B and C rent growth without further investment. Columbia has not been immune from a hesitant national office investment climate despite relatively little distress, continuing to see dampened sales.
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 26 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 is a global diversified professional services and investment management company. Operating through three industry-leading platforms – Real Estate Services, Engineering and Investment Management – we have a proven business model, an enterprising culture and a unique partnership philosophy that drives growth and value creation. With annual revenues exceeding $4.8 billion, a team of 23,000 professionals and $99 billion in assets under management, Colliers remains committed to accelerating the success of our clients, investors and people worldwide. Learn more at corporate.colliers.com, X @Colliers or LinkedIn.
