Combating the speed-to-market challenge
January 26, 2022
Commercial Real Estate Research & Forecast Report
Q4 2021 Columbia Industrial
Market Highlights
Columbia industrial demand is strong and availabilities are scarce. The mindset for developers in the Columbia market has historically been “if you build it they will come.” Current market conditions have caused that mindset to shift to “build it because they are already here.” Speed-to-market requirements continue to face challenges because industrial buildings are not being delivered fast enough to meet demand. In 2021, there were only a combined 321,780 square feet of new product delivered among three buildings. Consequently, absorption, while positive, was not nearly as high as it could have been had there been more available property to lease.
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Key Takeaways
- Tenants are considering executing leases a year or more in advance of delivery to secure space within buildings under construction or planned
- Columbia industrial demand continues to show its strength while existing availabilities are scarce
Summary
It is anticipated that at least 450,000 square feet of speculative industrial product will begin construction during the first quarter of 2022. In addition, there is another 1.37 million square feet proposed to be built between 2022 and 2023 which will help satisfy current demand.
