Warehouses lead the pack for high demand
- Absorption was positive and vacancy rates dropped during the fourth quarter; however, no new construction was delivered to the market.
- The warehouse sector is in high demand and absorbed 246,615 square feet during the fourth quarter of 2018.
- Due to a positive business climate, increasing capital investments and a low unemployment rate, the Columbia industrial market will attract new owners to the market.
2018 Market Recap
During 2018, the Columbia industrial market absorbed 1.36 million square feet of industrial space. Most of the positive absorption occurred within the warehouse sector, which absorbed 922,284 square feet this year. Even though four industrial buildings were delivered to the Columbia market during 2018 adding 328,601 square feet, the overall industrial market vacancy rate has decreased 153 basis points from 9.62% during the fourth quarter of 2017 down to 8.09% this quarter. The average weighted rental rate rose from $3.47 per square foot one year ago to $3.73 per square foot during the fourth quarter of 2018.
The Columbia industrial market is comprised of 69.38 million square feet within 1,281 buildings throughout 17 submarkets. The overall Columbia industrial market absorbed 239,031 square feet this quarter; Northeast Columbia posted the highest absorption of 128,512 square feet followed by the Cayce/West Columbia submarket absorption of 86,706 square feet. There were no new industrial buildings delivered to the Columbia market this quarter; however, construction continues on the 818,056-square-foot manufacturing facility in the Southeast Columbia submarket. The overall industrial market vacancy rate dropped 34 basis points from 8.43% during the third quarter of 2018 to 8.09% during the fourth quarter of 2018, and the average weighted rental rates increased from $3.68 per square foot last quarter to $3.73 per square foot this quarter.
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