New companies, expansions and upgrades increase industrial demand
- Rental rates continue to rise and vacancy decreased again this quarter.
- New companies are moving to the Columbia market.
- Current industrial tenants are expanding and owners are upgrading dated space.
Demand for space is high
The Columbia market has a strong demand for industrial space of any size as the sectors of advanced manufacturing, distribution and service industries continue to see rapid growth. New companies such as Garden State Lumber, which is now occupying 170,000 square feet at the Lexington County Industrial Park, and Morrisette Paper, which leased 65,000 square feet at 128 McQueen Street in West Columbia continue, to be drawn to the region. Also, established companies are expanding their current operations: Belk has 410,000 square feet at 120 Belk Court and now has expanded into an additional 154,000 square feet at 110 Belk Court. In addition, Constantia also expanded their footprint at 1111 Northpointe Boulevard and the CED Solar Panel Division expanded from 15,000 square feet to 30,000 square feet. As rental rates rise with diminishing availabilities remaining, dated industrial space is being upgraded and absorbed. For example, the 10700 Farrow Road building owner updated the roof and added LED lights throughout the facility. New construction is also supported, as evidenced by Midway III, a 200,000-square-foot Class A distribution facility, which was 100% leased prior to its completion.
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