What will take the Columbia office market to the next level?
- The overall Columbia office market absorbed 56,270 square feet from the fourth quarter of 2018 to the fourth quarter of 2019.
- There are less office-using jobs in Columbia than there were at year-end 2018; therefore, the demand for office space is decreasing.
- Columbia’s annual office vacancy rate decreased from 10.73% during the fourth quarter of last year to 9.94% this quarter.
2019 Office Recap
The annual office vacancy rate decreased from 10.73% during the fourth quarter of last year to 9.94% this quarter. Overall, Columbia absorbed 56,270 square feet; the central business district posted a negative 53,488 square feet due to CBD office properties being repurposed or demolished last year. The Northeast Columbia submarket posted the highest annual absorption of 129,134 square feet this year. Throughout 2019, there have not been many options for new leases within the central business district due to the lack of available spaces. The overall average weighted rental rates have increased from $17.36 per square foot during the fourth quarter of 2018 to $18.25 per square foot this quarter. Likewise, Class A overall weighted rental rates have increased 5.01% from this time in 2018 and were $21.77 per square foot, and Class B rental rates increased 2.67% over fourth quarter of last year and were $17.90 per square foot during the fourth quarter of 2019.
So, what will it take for the Columbia office market to move to the next level of generating new construction? There are several factors which are needed to have a positive impact on creating new office construction.
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