Columbia office rental rates up, vacancies down

Office rental rates in the Columbia market are at historical highs and continued to rise to begin the year, up by an average 4 percent for the first quarter, according to Colliers International in Columbia.

Over the span of two years, rental rates for office space in the Columbia area have risen rapidly, increasing 8 percent in that period, the commercial real estate services company reported.

Rental rates averaged $16.20 per square foot per year January through March, Colliers said, up from $15.57 a year ago and $16.15 at the end of 2014.

“High occupancy and growing competitiveness among prospective tenants is providing landlords a competitive edge, allowing them to raise rental rates to levels never before seen in the market,” Colliers’ quarterly report said.

Columbia’s office vacancy rate fell slightly for the first three months of the year, to 17.2 percent, the report said. Some renters were kept away by the lack of available space, the report stated.

Class A office space in Columbia was down to less than 430,000 square feet at the end of March and rates held steady at a record high $19.42 per square foot, Colliers said.

Here’s a look at Colliers’ other first quarter findings:

Columbia (Central Business District)

Total vacancy – 493,907 square feet

Vacancy rate – 10.56 percent

Asking rental rate (per square foot) – $19.25

Cayce/West Columbia

Total vacancy – 77,447 square feet

Vacancy rate – 14.83 percent

Average asking rental rate – $13.91

Northeast Columbia

Total vacancy – 372,060 square feet

Vacancy rate – 29.58 percent

Average asking rental rate – $14.83

St. Andrews

Total vacancy – 479,678 square feet

Vacancy rate – 21.58 percent

Average asking rental rate – $14.98

This story was originally published April 13, 2015 at 5:30 PM with the headline "Columbia office rental rates up, vacancies down."