Northeast Richland – Market Overview

By Ron Anderson, Vice President, Research and Technology at NAI Avant

Overview
 
The Northeast Richland submarket is located in the Columbia, South Carolina Metropolitan Statistical Area.  It is bounded on the north by Fairfield County, on the east by Kershaw County, on the south by Fort Jackson, and on the west by US 21 and Fulmer Road.  This submarket is the fastest growing in the metropolitan area as well as one of the wealthiest.  It is home to many of the region’s largest employers who are located along Interstates 77 and 20.  The principal attractions of the region are (1) the Richland Two School District which is widely regarded as one of the state’s finest; (2) a full range of housing types and prices; (3) diverse employment opportunities; (4) a rapidly expanding array of retailers and service businesses; and (5) excellent transportation access.

Land Pricing and Rents

Because of the size of the market, pricing varies substantially depending on the level of urbanization.  Tracts for single family residential development have traded between $7,000 and $40,000 an acre with the highest prices for in fill locations.

Sites for single use retail or banks have been selling for $6.50 to $17.50 per square foot. 

Population

Between 2000 and 2008, the Northeast Richland market population expanded by 37% – adding an average of 3,600 persons a year. By the year 2013, assuming constant growth, we expect the population to approach 123,000 persons.

Geographically, the population is concentrated between I-77 and  I-20 south of Rimer Pond Road.  Since the early 1980’s development has generally moved northeast up Two Notch Road, west along Clemson Road, and north along Hardscrabble Road.  In the next few years the traditional development corridors will generally see smaller in-fill projects while the larger scale projects move west towards and across Interstate 77.

Twenty-nine percent of the population was under 20 years of age in 2008.  Almost 16% were over the age of 60 years. 

Residential Development

Between 1998 and 2007, an annual average of 2,000 housing units were permitted in Northeast Richland with a high of 3,272 in 2006. Nearly 1,100 multifamily units were permitted in 2006 and another 500 in 2007.  Beginning in 2009, the pace of multifamily development should slow  – allowing the market to absorb the new units.

Over the last five years, the majority of site-built residential development was concentrated in the area bounded by Farrow, Clemson, and Two Notch roads, and the county line.  This includes large scale developments such as Lake Carolina, Villages at Longtown, Longcreek Plantation, the Summit, and a number of smaller subdivisions that were experiencing their peak years of development.  However, most of those developments are nearly complete and most development is shifting to a corridor surrounding Interstate 77 east of Farrow Road and west of Fulmer Road. 

There are 47 residential subdivisions currently active in the Northeast Richland market. Notably, every large national and regional housing developer is present in at least one major subdivision and several smaller ones. Prices range from $100,000 to more than $1,000,000. 

 

Income

The average household income in the Northeast Richland market is estimated at nearly $62,000. It is projected to remain about the same over the next five years.

30% of all households had incomes exceeding $75,000 in 2008. 10% of households had incomes in excess of $125,000.

Employment

Major industrial, office, and warehouse/distribution employers are predominantly distributed along the interstate highway corridors.  Major retail employment is clustered along Two Notch Road and in the Village at Sandhill. 

Employment in Northeast Richland is diverse and representative of the Columbia area as a whole. Companies from the government, services, trade, and manufacturing sectors each have a significant industry presence.

Given the abundance of available land, interstate accessibility, the wide range of housing opportunities and quality public schools, it is likely that employers will continue to be attracted to this market.

Commercial Activity

Retail development in the market is anchored by the Village at Sandhill. In the last three years, Columbia’s only lifestyle center gained momentum adding a number of national retailers, several restaurants and the first phase of residential condominiums. The site has 180 additional acres dedicated to high density residential, office, and institutional uses.

Hardscrabble Road between Clemson Road and Lake Carolina is currently a burgeoning neighborhood commercial corridor with additional in-fill of retail space, banks, automotive repair, and medical offices to meet the needs of the rapidly growing surrounding communities.

The Clemson and Killian area is home to a new Wal-Mart, Lowes Home Improvement and several new car dealerships.  A number of large commercial tracts are being actively marketed to tenants for prospective developments.

The Spears Creek Church Road corridor has four multifamily projects either underway or recently completed. Retail development to serve this market will likely follow.