Stable growth attracting investors and elevating asking rates in Columbia’s office market
October 26, 2017
CBRE Research has released the Q3 2017 data on the office commercial real estate market in Columbia, South Carolina. For the eighteenth consecutive quarter, the Columbia office market has exhibited positive absorption with vacancy declining to 16.1%.
Investors are drawn to the market’s stability attributed to government and University of South Carolina presence, the production of a highly educated workforce and the market’s status as one of the most affordable markets in the Southeast. Most notably, New York-based Hamilton Equity Partners recently purchased Capitol Center.
Lower rental rates in comparison to other major markets affords landlords the opportunity to add amenities to attract tenants and increase rents. Rental rates are expected to continue to rise and will likely spread throughout the entire market. The largest lease transactions of this quarter are from the government, education and legal sectors and total more than 75,000 square feet of space.
There are no new office developments under construction for Columbia and will be difficult to justify until Main Street vacancy is filled. The most recent office developments, Innovation Center and First Base Building, are under 70% occupied and were delivered five quarters ago.
The following are highlights of the report.
• Four years of growth attract investors and raising asking rates
• Stability being provided by education and governmental sectors
• Major tower trades hands, should prompt additional rental rate increases
• CBD space is in more demand than suburban space
• Nothing is in the development pipeline
For more information, click here for Q3 2017 Columbia Office MarketView.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
