IRR-Columbia Mid-Year Viewpoint 2015 Local Market Report - Multifamily
According to Real Data, the Columbia area’s occupancy rate remains healthy at 92.3%. The area recorded positive absorption over the past six months. Development activity increased during this time period with approximately 1,400 new starts, the majority of which are located in the Central Business District submarket. Same-store rents increased by 1.6% over the past six months bringing the overall average monthly rent to $893.
During the second half of 2015, demand is likely to remain at a healthy level, however, it will not be able to keep pace with the abundance of new supply expected to come on-line. Vacancy rates are forecast to approach 9% in the next twelve months.
The redevelopment of the Palmetto Compress warehouse is back on track, after sitting idle for a few years. Developers are anticipating the building, originally built in 1918 and 1923, to be open ahead of the Fall 2016 academic year. The 366,000 square foot building, in the 600 block of Devine Street, will include 197 apartments. Thirty-five of those will be three-bedroom units, 103 will be two-bedroom and another 59 will be one-bedroom, plans show.
Student housing units are being built in Columbia at an unprecedented rate, leading many to wonder how many can be absorbed. Over 2,500 new units are expected to come on-line for the 2015-16 academic year. Much of the new construction might not have happened if the City hadn’t approved tax incentives for the developers. A tax credit has been extended to student housing developments in the city that are valued as investments of at least $40 million and which provide their own parking garages. It gave those projects a 50% cut in their property taxes for the first 10 years of occupancy, after which the cut is set to end.
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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.