Columbia, SC - Colliers International’s J.P. Scurry, CCIM and Scottie Smith completed the sale of 21 acres of land on Piney Grove Road in northwest Columbia, SC that will become the site of the area’s first Costco store. Paul Holder with Avtex was a part of the team that facilitated the transaction, which involved the purchase of multiple parcels of land to facilitate the construction of a 153,000 square-foot store.
The magnitude of Costco’s arrival in Columbia cannot be overstated. Costco is the world’s second largest retailer, and prior to this announcement, the closest stores to Columbia were in Charlotte, NC and Augusta, GA. The community has been demanding a store for years, making it the most sought-after retailer for the Midlands region, but a previous deal fell through in 2013 due to conflicts over road improvement needs. The retailer has four other stores in South Carolina – Charleston, Greenville, Myrtle Beach and Spartanburg – but this will be the first new location in South Carolina in over a decade.
The new store will not only please residents who have clamored for a Costco but also boost the local economy. Costco plans to hire more than 200 people, and estimates for the county include $7 million in revenue a year in sales tax alone at the store.
While the arrival of Costco to the Columbia market has been long-awaited, it had become nearly inevitable in recent years as grocers and discount retailers have shown growing interest in the area. Costco’s announcement follows other major grocers like The Fresh Market, Lowes Foods, Kroger Marketplace, Walmart Neighborhood Market and Sam’s Club, all of whom have recently announced new locations or expansions in the market. According to Colliers’ most recent Columbia retail market report, the area’s growing residential population has driven a retail boom, with consumer spending increasing for at least the last five years. In fact, in Richland and Lexington counties, gross retail sales increased 4.3% from 2014 to 2015, reaching $22.8 billion.
Scurry, a Vice President of Colliers International South Carolina, and Smith, a Brokerage Associate, are members of the Colliers International Retail Services Team and have been involved in a significant number of sale and lease transactions across the Southeast.