Industrial Market Continues Expansion
- Steady leasing activity causes vacancy to decline.
- New construction continued with three new buildings in the pipeline.
The Columbia industrial market posted a strong third quarter with 410,000 square feet of absorption. Since the beginning of 2017, nearly 1.1 million square feet have been absorbed. Samsung began upfitting the 453,000-square-foot Caterpillar facility in Newberry, and the 818,000-square-foot Jushi fiberglass plant is near completion. Vacancy fell to 9.52% this quarter from 10.08% a quarter earlier.
The warehouse/distribution sector comprises the largest portion of the Columbia industrial market, with more than 42 million square feet. At the end of the third quarter of 2017, vacancy fell to 8.17% and 229,880 square feet were absorbed. Rents were stable, with a triple net rate of $3.30 per square foot per year, and two speculative buildings were announced.
Manufacturing had a solid third quarter in Columbia. Overall, 141,008 square feet were absorbed. Vacancy fell from 12.07% to 11.45%. Rental rates were stable, with a triple net rate of $2.84 per square foot per year.
Vacancy in the flex market fell to 16.23% in the third quarter of 2017. There were 39,500 square feet absorbed. The average rental rate was stable this quarter, with a triple net rate of $10.01 per square foot per year.
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