The commercial real estate market in Columbia, SC has been experiencing strong performance across various sectors, particularly in the industrial and retail segments.

Industrial Market

Columbia’s industrial market is a standout performer, with record low vacancy rates and high demand from manufacturers and third-party logistics providers. According to Colliers South Carolina, the industrial vacancy rate fell to a record low of 2.4% during the second quarter of 2023, despite over 1.2 million square feet of new delivery. Positive absorption is largely driven by new companies entering the market, attracted by Columbia’s proximity to major interstates and ports, as well as the available workforce.

Office Market

Columbia’s office market has remained resilient, with a significant drop in vacancy to 15.3% in Q2 2023, driven by tenant demand for high-quality spaces. The market is benefiting from the trend of “flight-to-quality,” with employers seeking modern, amenity-rich spaces to attract workers.

Retail Market

The retail sector in Columbia is also performing well, with a decreasing vacancy rate of 4.75% in Q4 2021, according to Colliers. Strong leasing activity and limited new supply have pushed the retail vacancy rate to a record low of 3.1% as of Q4 2023, according to NAI Columbia. Overall, Columbia’s commercial real estate market is thriving, driven by strong demand, limited supply, and the area’s affordability and strategic location. The industrial and retail sectors are leading the way, while the office market remains stable and poised for continued growth.

Hospitality Market

Columbia’s hospitality sector has experienced robust growth, fueled by the city’s thriving tourism industry and positioning Columbia as a premier meetings and events destination. The city’s hotel market has seen strong performance, with occupancy rates reaching 68.5% in 2022, surpassing pre-pandemic levels. With major demand generators like the University of South Carolina, Fort Jackson military base, and the state government, Columbia’s hospitality market remains an attractive investment opportunity.

Self-Storage Market

The self-storage market in Columbia, SC has exhibited robust fundamentals and growth potential. As of 2023, the Columbia metro area had a total self-storage inventory of around 6.2 million square feet across 177 facilities, with a tight physical occupancy rate of 92.9%. Rental rates averaged $119 per month for 10×10 non-climate-controlled units and $144 for 10×10 climate-controlled spaces, reflecting strong demand. New development activity remains elevated, with around 250,000 square feet delivered in 2022 alone across 4 newly built facilities. This steady supply pipeline aims to meet the storage needs of Columbia’s

growing population and business activity. Columbia’s self-storage sector presents an attractive investment opportunity within the city’s thriving commercial real estate landscape. The market’s robust demand drivers, coupled with relatively affordable rental rates compared to other major metros, position self-storage as a compelling asset class for investors seeking stable cash flows and potential for value appreciation.

Why Columbia, SC for Your Next CRE Move?

SVN Blackstream advisors can help you answer the question. Columbia, SC, offers a compelling case for commercial real estate investment, driven by its strategic location, robust economic growth, and diverse industry base. As the state capital and home to major institutions like the University of South Carolina, Columbia benefits from a stable and expanding economy.

Entering Columbia’s commercial real estate market offers the potential for attractive returns, supported by the city’s economic stability, growth potential, and strategic advantages. Whether you are looking to buy, sell, or lease commercial properties, Columbia presents a dynamic and promising environment for real estate investment.