IRR-Columbia Mid-Year Viewpoint 2015 Local Market Report - Industrial
Columbia industrial vacancy rate has been gradually declining since the high mark of 13.2% in the first quarter of 2013, and is currently at 8.75%. Economic development officials report that since Charleston landed the Volvo manufacturing plant, the interest in the Columbia region has increased significantly. Due to the proximity to the Port of Charleston, overall interest in the region should accelerate again in early 2016, when the expansion of the Panama Canal is completed. Columbia is strategically located between the Port of Charleston and the South Carolina Inland Port at Greer.
Officials in Lexington County recognized the need for new product and in 2014 approved the construction of a 120,000 square foot spec building in the Saxe Gotha Industrial Park. In Richland County, two Class A speculative buildings are under construction at the Shop Grove Industrial Park in southern Richland County. The buildings will contain 70,000 square feet and 62,500 square feet. Other speculative buildings are being discussed, but none have been announced.
While the overall market is tightening, Bose recently announced that it will, be closing its 465,000-square-foot Class A facility in Northeast Columbia in September. The facility, which is expandable to 1 million square feet, was opened in 1996. Bose announced its plans to eliminate 300 jobs as part of a restructuring move.
The demand for industrial space is evident in the growth in manufacturing jobs, which increased 5.8% in March 2015, as compared to March 2014.
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IRR Mid-Year Viewpoint 2015 comprises a National Overview report and 300+ two-page Local Market Reports for all key property types as well as additional resources, including metrics methodology, graphs, and tables; these free reports may be downloaded from IRR’s site here.