Central business district has high-quality space available
- Columbia’s office market posted a positive absorption of 42,283 square feet due to the healthy suburban market activity during the second quarter.
- Weighted rental rates rose this quarter as a result of higher-priced, quality available space within the central business district.
- A variance in tax burdens is creating a competitive environment between Richland County and Lexington County.
Creating competition between counties
Property taxes are often a deciding factor for new businesses interested in locating within a business district. Before moving, business owners will ask questions about how high the property taxes are within the district and if there are tax breaks for business owners. The answers to these questions will either assist or deter the region’s efforts to draw new businesses.
According to the Tax Foundation, property tax is the principal source of revenue for localities. Taxes are imposed on business owners in every region; however, some counties have higher tax millage charges than others. A multitude of local political subdivisions such as counties, school boards and other agencies have specific millage charges as well. For this reason, the tax burden is less in Lexington County than it is in Richland County, creating a competitive, rather than cooperative, business environment between the two counties. As an example, below are office buildings from each county and the property taxes per square foot charged for each building and the millage rate.
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