In Columbia we continue to see interest in the central business district, particularly in those buildings that have been wired to address the Internet and electronic needs of more sophisticated tenants, according to Ben Brantley, sales associate, office and industrial agent at CB Richard Ellis. Suburban demand remains high even as 60,000 square feet of new space has come on-line. Rental rates are expected to increase as demand remains high in the Columbia MSA. As of December 2000, vacancy for the entire market was near 10 percent.

Washington Square, a 92,000-square-foot high rise in the CBD, has been bought and is being refurbished and wired, filling a need for this type of space in this submarket. In the suburban market, a former 147,000-square-foot mall has been purchased and is being redeveloped into office space. This influx of space will provide a needed alternative to the existing space in that submarket.

Although there are no new major construction projects announced, 348,000 square feet is currently being built or completed, says Brantley. These buildings are being constructed in the downtown market or the Northwest suburbs to address the residential growth of qualified workers in that area.

While no one tenant is absorbing the majority of space, telecommunications companies definitely lead the charge on new leases.

Most are new to the Columbia area, while a few are companies that have been in Columbia and have chosen to expand.

Several leases have occurred recently in the area. Taylor & Associates leased 14,000 square feet of space in the new Carolina First building on Main Street. This increases the pinch of wired space in the CBD, Brantley says. Time Warner Cable leased over 15,000 square feet at 1401 Main St., and SCE&G has taken a lease of 6,000 square feet in the suburbs.

Rental rates for Class A space range from $17.50 to $20 per square foot, full service, Brantley says.

With only 36,000 square feet of major construction plans announced at this time, the office market in Columbia will continue to get tight as new companies enter the area. Hot spots will continue to be the CBD and the Northeast and Northwest corridors in the suburbs. The Northeast submarket is one of the fastest growing residential areas in the state, but the office market has not yet grown in that direction.

Reducing supply with even steady demand will continue to drive rental rates higher, Brantley adds. Interstate access, climate and aggressive economic development boards will continue to spur development and growth in the midlands of South Carolina.

Ben Brantley serves as sales associate, office and industrial agent with CB Richard Ellis.


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