Every Property Class in the Office Market Reported Gains - Pushing Tenants to Seek Long-Term Leases
Columbia, SC, Jan. 15, 2016— CBRE Research has released the latest data on the office commercial real estate sector in the Columbia, S.C., market. In Q4 2015, Columbia office tenants committed to longer leases, landlords pushed rents higher, new startups entered the market and existing buildings became potential investment sale opportunities.
Tenant confidence drove market activity as users secured longer terms that allowed for better tenant improvement allowances. While some activity during this quarter consisted of standard relocations, most tenants adjusted their size for expansion of workforce or reduction of footprint for more efficient space.
This activity drove asking rents higher, increasing by 5% from this time last year. All property classes and all submarkets except St. Andrews saw increases. The greatest positive shift in rental rates occurred in Class A product, where average asking rents increased nearly 7% in the CBD and 6% in the suburban submarkets.
The following are highlights of the report.
Office
- Tenants are securing longer lease terms
- Average asking rate in all classes increased
- Tightening market conditions may lead to a greater number of office properties offered for sale in 2016
