Contributed by NAI Avant
The Columbia office market saw a vacancy of 10.8% at the close of the third quarter 2017, increasing slightly from 10.3% at the end of the second quarter 2017. Overall rental rates rose as expected to $17.42, following $17.18 in 2Q17. This rate matches a previous 9 year high.
The Central Business District (CBD) continues to see the most activity for both new and existing tenants. Tenants are not only looking for flexible and efficient space to fit changing work styles, they are pursuing intriguing, amenity-rich space that helps attract and retain talent.
The demand to have a “live-work-play” lifestyle is credited with driving much of the urban immigration. Downtown Columbia closed the quarter with an exceptionally low vacancy rate of 8.3% compared to a suburban office vacancy of 14.2%.
The CBD proves to be office seekers first choice for office space, followed by St. Andrews, then Northeast Columbia. The St. Andrews submarket led in absorption posting a positive 30,882 square feet (SF) in the third quarter.
This quarter, the net absorption