Colliers Report: Columbia Industrial Market Q2 2026

Manufacturing growth drives demand as aging inventory challenges the market.

Market Highlights

Columbia’s industrial market remains challenged by a shortage of high-quality space, while manufacturing investment has held steady as the market’s driving force while 3PL activity softens. On average, available space within the market was built in 1982, while six of the market’s seven vacancies of 150,000 square feet or more date to the 1960s. These functionally challenged spaces largely don’t meet the clear height or power requirements of modern manufacturing or distribution users, creating a soft barrier to stronger absorption.

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Key Takeaways

• The average vacant space in the market was built in 1982, reflecting an excess of functionally-challenging inventory in an era where heavy power and high clear heights drive tenant requirements.
• Vacancy continues to tick upwards despite manufacturing-driven positive absorption as older spaces shed occupancy, driving home a pressing need for new speculative construction.
• Class A availability remains severely restricted, with the market unable to cover immediate-occupancy requirements for modern bulk space.
• Strong workforce availability was highlighted by a reported 17,000+ applications for Scout Motors’ first tranche of production jobs. Skilled labor continues to attract manufacturing investment, including Ferrara’s $675M announcement in Orangeburg County.

About Colliers

Colliers | South Carolina is the largest full-service commercial real estate firm in South Carolina with an annual transaction volume of $1.5 billion. The firm has 225 real estate professionals covering the state with locations in Charleston, Columbia, Greenville and Spartanburg. Colliers is the largest manager of commercial real estate properties in South Carolina with a portfolio of over 31 million square feet of office, industrial, retail and healthcare properties. Colliers | South Carolina’s sister company, LCK, provides project management services across the Southeast and beyond with an annual project value of $1.3 billion. LCK helps clients maximize the value of their development projects while remaining on schedule and within budget. Colliers and LCK staff hold more professional designations than any other commercial real estate firm in 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 $5.5 billion in annual revenues, a team of 24,000 professionals, and $108 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.