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Report: Specialized retail remains successful

Staff Report //August 29, 2018//

Report: Specialized retail remains successful

Staff Report //August 29, 2018//

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A report (pdf.) from Colliers International shows specialized brick-and-mortar stores continue to have success in Columbia despite the lure of online retail.

The report found average retail market rental rates have risen in the second quarter of 2018 as the Columbia market absorbs non-core shopping center space. Since 2016, 10 new grocery stores have opened in the Columbia MSA, two are currently under construction, and one has been proposed.

Non-core shop rental rates were $11.94 per square foot at the end of the second quarter. That is a 1.88% increase compared to the second quarter of 2017.

“In order for these stores to compete, they will offer convenient online ordering with in-store pick up, meal preparation and home delivery,” the report said.

During the second quarter of 2018, the Columbia shopping center market absorbed 113,433 square feet. Overall average weighted rental rates rose to $13.38 per square foot compared to $13.34 per square foot in the first quarter of 2018. Columbia retail market vacancy rate rose 10.29% during the second quarter of 2018 because of an additional 78,299 square feet available compared to the first quarter of 2018.

The highest average triple net weighted rental rate is $22.29 per square foot in the Golden Triangle, which includes sections of Forest Drive, Garners Ferry and Devine Street. The vacancy rate was down to 1.22% compared to 1.42% last quarter.

There were 80 sale transactions in the Columbia area during the second quarter and 72 leases signed. Key transactions included:

  • 131,809-square-foot Lexington Towne Center (retail center) was purchased for $12.6 million
  • 68,710-square-foot Friarsgate Plaza in Irmo (retail storefront) was sold for $2.6 million
  • 5,748-square-foot restaurant at 7711 Two Notch Road sold for $2.25 million

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