Shopping Center Redevelopments Bring Growth to Columbia
The past three years have brought continuous improvements to the Columbia retail market as the current mid-year vacancy rate of 8.34% is lower than the 11.66% vacancy rate of year-end 2009. This decreased vacancy is largely explained by big-box retail stores left vacant during the recession have since been filled with new tenants entering the market and taking advantage of high quality space at attractive rental rates. The declining vacancy rates and lack of significant supply is putting upward pressure on rental rates. The average asking rates for available junior anchor space increased by $1.38 per square foot to $13.09 per square foot while average asking rates for available small shop space increased by $2.07 per square foot to $14.13 per square foot.
There has been a strong trend towards infill development as the denser urban markets outperformed the suburban markets. Forest Acres boasts a vacancy rate of only 1.14% while downtown’s vacancy rate is 2.08%. Construction nears completion at Cross Hill Market, a 75,000-square-foot redevelopment in southeast Columbia. Cross Hill Market will mark the first Columbia location for a number of retailers, including Whole Foods, Taziki’s Mediterranean Café, Nadeau Furniture, Charleston Cooks and Basil. Just down the street, Trader Joe’s will also make its first foray into the market, occupying a former gym in the Forest Acres submarket. Development continues in the Harbison submarket on a junior anchor center that will include DSW, HomeGoods, ULTA and Staples. Killian Crossing, a 450-acre site, in Northeast Columbia is currently installing infrastructure and constructing an initial phase bringing new activity to the northeast submarket.
Download the full report
For more information, including the market summary statistics, download the full research report.Download report