Jul
26

Colliers: Columbia Industrial Rents on the Rise

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sales up graphWith rents going up and the cost of borrowing money staying low, industrial tenants may find it more affordable to buy buildings they currently lease, according to a new Colliers International report.

Also, the Midlands industrial market is expected to strengthen despite the political uncertainty due to the upcoming presidential election in the United States and the United Kingdom’s vote to separate from the European Union, according to the report authored by Bryana Mistretta, research coordinator at Colliers.

“Investment conditions are expected to continue to improve with high rental rates, moderate capitalization rates and low interest rates which are expected to drop further by the end of the year,” the report said. “Long-term, the market will see positive growth with the expected expansion and investment of companies, new and existing, in the market.”

Average asking rental rates for industrial properties in the Columbia market climbed in the second quarter to $3.36 triple-net per square foot per year from $3.34 for the second quarter of 2015. Two years ago the average asking rate was $3.16 triple-net. (In a triple-net lease or NNN, the tenant pays real estate taxes, insurance, and maintenance.)

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