Aug
08

Columbia Industrial Space Tightening

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There’s a need for additional industrial space as an improving economy pushed the Columbia market vacancy rate to 8.6% at end of the second quarter, according to a report from NAI Avant.

“Today we are experiencing the rally to recovery which continues filling vacancies in the marketplace,” said Nick Stomski, senior broker at the Columbia commercial real estate firm. “Despite slow to moderate economic growth, the industrial real estate market remained on a path toward a need for additional product as we saw yet again positive net absorption.”

The second-quarter vacancy rate was more than 0.5 percentage points below the 9.2% rate recorded at the end of the first quarter. The vacancy rate for some 55 million square feet of industrial and flex space was 9.4% at the end of the second quarter of 2013.

The average rental rate on warehouse space at the end of the second quarter was $3.51 per square foot. “As space tightens up and requirements increase, we are realizing a need for additional space in the marketplace, however there are several obstacles standing in the way that need to be overcome,” Stomski said.

New construction has been stymied by rising material costs, newly adopted building codes, compressed rental rates and available funding, Stomski said.

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