Columbia is “famously hot” for investments
Columbia is currently a stable investment environment despite national reports of investors becoming more cautious. While primary markets are beginning to slow, the lull has pushed investors to secondary and tertiary markets such as Columbia. In 2017, $650.6 million in capital investments and at least 2,554 new jobs were announced in the Columbia market.
- Columbia’s office market is primed for investment activity with low vacancy and rising rents; likewise, from July, 2016 to October, 2017 over 30% (1,434,590 square feet) of the total CBD office inventory, was sold to investors. In addition, those investments were within the central business district Class A office towers.
- Industrial construction activity remains near its historic high with 1.8 million square feet currently under construction. Columbia will also benefit from the opening of Volvo and Sprinter Van in Charleston and the continued expansion of Michelin and BMW in the upstate. As automotive suppliers continue to locate around the state, the industrial investment interest will grow in order to meet that need in Columbia.
- Recent retail shopping center sales have increased with a local investor purchasing two shopping centers at Seven Oaks Shopping Center in Irmo and Three Fountains Shopping Center in West Columbia. Also, a California-based investor purchased the Clusters of Whitehall. Retail vacancy is at a historic low of 4.2% in the second quarter of 2017 within core shopping centers and going forward, this will likely be attractive to investors looking to purchase net operating income within the retail sector.
- There are six multifamily developments currently under construction at Canalside on Taylor Street, Park 7 on Assembly Street, Abernathy Place on Garners Ferry Road, Killian Lakes Apartments on Killian Lakes Drive, National Guard Apartments located on National Guard Way and Brookland on Meeting Street. The Kline City Center on Huger Street is proposed to begin construction in December of this year and, upon completion, these 7 new developments will add 1,802 apartment units to the market.
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