Columbia industrial market outperforms expectations amid pandemic
- The Columbia industrial market outperformed expectations with a total absorption of 479,072 square feet during the second quarter of 2020.
- Due to positive absorption, the quarterly vacancy rate dropped from 4.86% during the first quarter of 2020 to 4.47% this quarter.
- The actual effects of the outbreak of COVID-19 on the industrial real estate sector will not be realized for several quarters.
Columbia industrial weathers the storm
Industrial activity throughout the nation was expected to perform better than other sectors due to essential employee services, e-commerce shopping and distribution centers remaining open while other businesses were forced to close at the onset of COVID-19. However, the Columbia industrial market outperformed expectations with a total absorption of 479,072 square feet. The activity was mainly concentrated within manufacturing and warehousing facilities. Manufacturing absorbed 352,700 square feet and the warehouse sector absorbed 113,960 square feet. Due to the positive activity, the overall market vacancy rate decreased to 4.47%. Also, construction activity continued and a 200,720-square-foot industrial building located at 145 Millennium Drive finished construction this quarter and 245,000 square feet are currently under construction. There are still many transactions expected to complete in the next few quarters despite the uncertainty surrounding COVID-19; therefore, Columbia industrial activity is anticipated to be strong enough to continue to weather the storm.
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