Lexington Market Overview

Overview

The Lexington market area is located in the western portion of the Columbia, South Carolina metropolitan area.  It is bounded on the north by Lake Murray, on the south by Interstate 20, on the west by Calks Ferry Road and the east by the Saluda River. The geographic and economic center of the market is the Town of Lexington.  The area is one of the fastest growing areas in the Greater Columbia area, second only to the Northeast Richland market.  It is also one of the top three in household income.  The principal assets of this market are (1) the Lexington 1 school district which is widely considered one of the top in the state; (2) miles of Lake Murray shoreline; (3) numerous employers located in or immediately adjacent to the market; and (4) easy access to the region via Interstate 20, US 378, US 1, and SC 6.

Land Pricing and Rents

Land prices and rents are relatively high within the Lexington market area.  Sites for single family residential development are difficult to find and command the strongest prices in the region. Prime sites for banks and restaurants are selling for up to $30 a square foot and Class A small shop retail rents are up to $25 a square foot.

Population

Since 2000, the Lexington market population expanded by 45% – adding an average of 1,500 persons a year. By the year 2014, the market is projected to reach  nearly 52,000 persons.

Geographically, the population is concentrated in and around the Town of Lexington.  However, in the past few years, growth has spread westward to the Highway 204 corridor and more recently eastward along US 378 between I-20 and the Town of Lexington.

The Lexington market is a relatively young area. Twenty-seven percent of the population was under 20 years of age in 2009.  7.5% were over the age of 70 years. Of the remainder, the single largest age cohort was persons between 40 and 59 years of age at nearly a third of the population.

 

Residential Development

Between 1999 and 2008, an annual average of 797 housing units were permitted in the Lexington market with a high of 1,475 in 2006. Until 2006, the vast majority of permits were issued for single family units.  However, in 2006 635 multifamily units were permitted. Another 464 were permitted in 2007.  

The most significant change in the Lexington market over the last year is the addition of many single family residential developments both east and west of the Town of Lexington. There are now 18 active single family subdivisions east of the Town – largely due to the access to sewer.  On the west side, there are also many new developments with the majority concentrated around the SC 204 corridor. This corridor is attractive because it has easy access to the Town of Lexington, the major employers nearby and Interstate 20 access via SC 204.  Assuming an average of 600 new homes a year are permitted, there is about a 5 year supply of lots available.

Income

The Lexington market is one of Columbia’s most affluent suburbs. The average household income in the Lexington market is estimated at more than $67,000.

About a tenth of all households had incomes greater than $125,000 in 2009.  Another quarter were between $75,000 and $125,000.

Employment

Major industrial, office, and warehouse/distribution employers are predominantly distributed along the Interstate 20 corridor.  Major retail employment is clustered along Sunset Blvd. (US 378).  Government employment is concentrated within the Town of Lexington – the county seat. 

Major employers in Lexington are concentrated in manufacturing, trade, and government sectors.  Notably absent is the presence of office buildings. However, many of the market’s residents commute into the office clusters in the Downtown Columbia and St. Andrews markets.

Commercial Activity

The US 378 (Sunset Blvd.) Corridor has been the most active commercial corridor in Lexington for the past five years. Driven by the surrounding residential growth, the growth of the Lexington Medical Center and the expansion of utilities, this area has seen a variety of medical office space, warehouse/distribution, and light manufacturing facilities appear in the past few years. This trend should accelerate in the next few years with the recent opening of Lexington Pavilion – a 230,000 square foot Target anchored center and the redevelopment of the Corley lumber mill.

The US 1 (E. Main Street) Corridor has a new building supply store and two apartment complexes. A major retail site is reserved on the east side of the US 1/Interstate 26 interchange although there does not appear to be any immediate plans to begin development.

The SC 204 Corridor is defined by its three principal intersections with US 1, US 378, and I-20.  This area is at the center of rapid residential development west of the Town of Lexington.  It is anchored by Lexington High School and the Lake Murray Shopping Center.  Two grocery anchored shopping centers are planned for this corridor that should open in late 2010.