YE 2012: Columbia Retail Market Report

Columbia, SC Continues to Attract New Retailers According to Colliers Year End Retail Market Report

COLUMBIA, SC – February 5, 2013

MARKET OVERVIEW
The Columbia, SC Retail Market continued to excel in 2012 ending the year with the lowest vacancy rate in over three years.  Down 26 basis points from mid-year 2012, the vacancy rate at year-end 2012 was 8.14%.  Despite the market’s low vacancy rate, average asking rental rates for anchor, junior anchor and shop space were lower than those of mid-year 2012.  Pass-throughs in the market, consisting of CAMs, insurance and taxes averaged $3.30 in the market with the greatest pass-throughs being in the downtown submarket.

The retail market’s success can be attributed to several factors.  While other markets were adversely affected by the recent recession, Columbia’s retail market stayed afloat due to lack of over development in pre-recession years.  Although closings of national retailers left big-box retail space vacant, they have since been occupied by merchants entering the market or growing as seen with Dick’s Sporting Goods opening in the Target Center on Two Notch Road.  Growing cities and populations are sought after by retailers looking to expand and branch out into new cities making Columbia a target for such retailers. In 2012 Columbia welcomed well known retailers such as Whole Foods, Trader Joe’s and HomeGoods.

CURRENT CONDITIONS
Retailer attention remains distributed throughout the Columbia market as evidenced by the diverse mix of retailers at The Village at Sandhill and Cross Hill Market. These developments parallel the national increasing trend of outdoor lifestyle centers which are in many cases replacing the construction of indoor shopping malls. Retailers are also showing increased interest in locating downtown as evidenced by Chipotle’s announcement of locating in the Vista.

The Harbison/St. Andrews submarket experienced the greatest improvement throughout 2012. This submarket ended the year with a vacancy rate of 9.04%, 3.76 percentage points lower than year-end 2011 largely due to the absorption of vacant big-box spaces. Rental rates in the submarket increased throughout the year as quality available space became limited in the submarket.

The Cross Hill Market redevelopment in Southeast Columbia was completed during the second half of 2012. The 75,000 square foot center is home to retailers Whole Foods, Ulta, Taziki’s Mediterranean Café, Nadeau Furniture, Charleston Cooks and Basil. Trader Joe’s will open its doors at the former gym in the Forest Acres submarket in early 2013.

IN THE MONTHS AHEAD
Continuous improvements are anticipated for Columbia’s Retail Market in 2013. The vacancy rate is expected to decline and rental rates are likely to climb over the year. Construction projects may also be on the horizon as the economy and lending environments recover.

Recent announcements of increased student housing projects in the downtown area coupled with the University of South Carolina’s growth promise to be beneficial for the downtown retail submarket. Restaurants and shops, as well as hotels, are anticipated for the downtown area as the demand for such services increases.

With the recession announced to be over, consumer optimism is expected to increase and be reflected with elevated consumption and spending. This surge in demand is sure to bring retailers into the market as an opportunity will exist for generating revenue.

Click the link to download and read the complete report: Colliers International | YE-2012 Columbia Retail Market Report