Columbia, South Carolina's retail sector remains strong, despite economic concerns that lie ahead.
Demand is definitely standing out in the market, for one. Net absorption increased to 87,400 square feet, up from the 73,000 square feet posted 12 months ago, according to analysis posted by Colliers.
Vacancy dropped by 89 basis points to 2.43 percent. The submarkets of Red Bank, Lexington, Forest Drive and Killian I-77 all stood out, posting rates below one percent. Also, Colliers noted that junior and anchor vacancies "remain near rock bottom levels."
"The Columbia retail market held steady, experiencing solid net absorption even as consumer confidence begins to show cracks and macroeconomic indicators soften," Colliers said.
Also, rents were up by 23 cents per square foot to $22.88.
However, moving toward some of the concerns, investors appear to be on the sidelines in Colombia, with Colliers noting that velocity is "slowing."
"The sit-down restaurant segment continues to face headwinds, driven by high labor and input costs," Colliers warned.
The top lease recorded recently in the market was Urban Air signing for 61,800 square feet in Harbison. That was followed by Trader Joe's at 22,400 square feet in Harbison and Metro Diner taking 4,300 square feet in Forest Drive.
Another thing the CRE firm pointed out was plunging consumer sentiment, which is weighing on investment decision-making. Plus, construction costs remain high. In Colombia, 123.4 million square feet was underway in the three months through June, the same amount recorded in the first quarter, and up more than double year-over-year.
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