2012 Global Market report - NAI Global

Columbia, South Carolina
Greenville/Spartanburg/Anderson Counties, South Carolina
Contact
NAI Avant
+1 803 254 0100
Metropolitan Area
Economic Overview
2011
Population
2016 Estimated
Population
Employment
Population
Household
Average Income
789,733
878,216
403,260
$65,236
Columbia is a six county region with approximately 768,000
people. It is the state capitol of South Carolina and the center
of the state government with nearly 25,000 employees. It has
two military bases, Fort Jackson and McIntire Joint National
Guard Base which collectively employ 10,000 people. The
region includes six universities that employ around 6,000
persons and is a regional medical center with three major
hospital systems, a VA hospital and medical school.
Columbia has about 34 million SF of office space and has
experienced a quarterly average absorption of 17,000 SF.
Occupancy in Q3 2011 was 92.7%. Landlords have held rents
steady over the last year but have been providing additional
tenant improvement dollars and free rent as concessions.
Activity in 2011 has been steady with several leases between
20,000 and 50,000 SF executed; most in the CBD.
The retail market has 53 million SF. Since 2008, an average
of 36,000 SF has been absorbed quarterly. Rents in
neighborhood retail centers range from $16 to $24/SF.
Occupancy rose by midyear to 93.1% as several of the “big
box” spaces were filled with new tenants.
The industrial market has 49 million SF of warehouse and
flex space. Occupancy remained steady at 89.3%. Rents have
remained stable because there are a relatively small
number of high quality buildings that meet current market
requirements. The only recent development was a 1,000,000
SF distribution center for Amazon.
Activity in 2011 has increased dramatically from 2010 in all
property types. Retail leasing continues to accelerate with retail
sales growing again, albeit slowly. Industrial leasing and sales
has increased as well with several large tenants entering the
market. The office market continued to improve this year
although activity mid-year slowed. Going forward, markets
seem to be tracking job growth which just turned positive in
the last two months. As this accelerates, expect all sectors of
commercial real estate to improve.
Contact
NAI Earle Furman
+1 864 232 9040
Metropolitan Area
Economic Overview
2011
Population
2016 Estimated
Population
Employment
Population
Household
Average Income
938,916
1,004,005
467,087
$60,234
The Upstate continues to be an attractive area for economic
development with over $197 million in capital investment
announced in Greenville County alone thus far in 2011.
This includes several corporate headquarters, company
expansions and new businesses moving to the area. Much of
the companies are manufacturing based and will join over
1,400 other companies who already call the Upstate home.
The office market is continuing its climb back to stability with
vacancy rates declining and a positive net absorption. Tenants
are returning to the market and activity has increased. New
businesses such as Perceptis Inc. have selected Greenville
as their home. The company plans to create 200 new jobs.
The retail sector is continuing a trend of declining vacancy
and asking rates. Recreational Equipment Inc. (REI) has plans
for its first South Carolina store in a portion of the former
Circuit City on Woodruff Road in Greenville. In Spartanburg,
Westgate Village has been redeveloped and is now occupied
by Toy's/Babies R Us and Old Navy, both of which relocated
from another center. The 500,000 SF Easley Town Center
project is underway with Walmart and Kohl’s completed.
Construction began on a $100 million two tower complex in
downtown Greenville. The 185,000 SF, nine story first phase
will house CertusBank’s headquarters, Anthropologie and
additional office and retail users.
Lease rates in the industrial sector have declined, however
vacancy has decreased with a positive net absorption. BMW
manufacturing is adding another $100 million investment
and ZF Group plans to invest nearly $350 million in a new
manufacturing facility in Laurens County. Construction of the
950,000 SF ZF Group facility is underway.
The multifamily sector has seen tightening supply as
occupancies have grown, and construction remains limited.
Occupancies have been on an upward trend for the past two
years. Two new downtown Greenville apartment projects are
under construction, with completion scheduled in mid-2012.
Greenville still offers investors a lower than average price per
unit with a stable tenant base.
Median
Household Income
$50,628
Median
Household Income
$45,807
Total Population
Median Age
35
Total Population
Median Age
37
Columbia At A Glance
(Rent/SF/YR) low High effective avg. Vacancy
doWntoWn offIce
New Construction (AAA)
Class A (Prime)
Class B (Secondary)
suburban offIce
New Construction (AAA)
Class A (Prime)
Class B (Secondary)
IndustrIal
$
$
$
$
N/A
17.00
14.00
N/A
17.50
14.00
$
$
$
$
N/A
20.00
16.00
N/A
19.00
16.50
N/A
$ 18.50
$ 15.00
N/A
$ 18.25
$ 15.25
N/A
10.00%
10.50%
N/A
13.20%
8.40%
Bulk Warehouse
Manufacturing
High Tech/R&D
retaIl
$
$
4.00
2.50
N/A
$
$
4.50
3.50
N/A
$
$
4.25
3.00
N/A
11.10%
15.20%
N/A
Downtown
Neighborhood Service Centers
Community Power Center
Regional Malls
$
$
$
$
16.00
12.00
16.00
25.00
$
$
$
$
18.00
18.00
24.00
45.00
$ 17.00
$ 15.00
$ 20.00
$ 35.00
3.90%
8.90%
4.20%
16.40%
deVeloPment land Low/Acre High/Acre
Office in CBD
$ 260,000.00 $ 1,300,000.00
Land in Office Parks
Land in Industrial Parks
Office/Industrial Land - Non-park
Retail/Commercial Land
Residential
$
$
$
$
$
120,000.00
30,000.00
25,000.00
105,000.00
5,000.00
$
$
$
$
$
350,000.00
80,000.00
40,000.00
720,000.00
20,000.00
Greenville/Spartanburg/Anderson Counties At A Glance
(Rent/SF/PY) low High effective avg. Vacancy
doWntoWn offIce
New Construction (AAA)
Class A (Prime)
Class B (Secondary)
suburban offIce
New Construction (AAA)
Class A (Prime)
Class B (Secondary)
IndustrIal
$
$
$
$
$
$
22.00
17.00
14.00
19.00
14.00
10.00
$
$
$
$
$
$
32.00
25.00
18.50
22.00
19.00
16.00
$ 25.00
$ 19.00
$ 16.00
$ 20.00
$ 16.50
$ 13.00
5.00%
12.00%
15.00%
10.00%
21.00%
15.00%
Bulk Warehouse
Manufacturing
High Tech/R&D
retaIl
$
$
$
2.50
3.00
4.50
$
$
$
4.00
5.00
9.50
$
$
$
3.25
4.00
7.00
9.80%
12.00%
12.50%
Downtown
Neighborhood Service Centers
Sub Regional Centers
Regional Malls
$
$
$
$
12.00
10.00
10.00
22.00
$
$
$
$
25.00
18.00
26.00
38.00
$ 16.25
$ 15.00
$ 18.00
$ 32.00
6.00%
8.00%
12.00%
2.00%
deVeloPment land Low/Acre High/Acre
Office in CBD
Land in Office Parks
Land in Industrial Parks
Office/Industrial Land - Non-park
Retail/Commercial Land
Residential
$
$
$
$
$
N/A
155,000.00
36,000.00
50,000.00
200,000.00
20,000.00
$
$
$
$
$
N/A
305,000.00
76,000.00
75,000.00
850,000.00
50,000.00
2012 Global Market Report n www.naiglobal.com 133