CENTRAL MIDLANDS COUNCIL OF GOVERNMENTS 2005 COMMERCIAL REAL ESTATE SURVEY Prepared By: CMCOG Staff January 2006 236 Stoneridge Drive Columbia, SC 29201 Phone: (803) 376-5390 Fax: (803) 376-5394 www.centralmidlands.org Price: $50.00 CENTRAL MIDLANDS Council of Governments CENTRAL MIDLANDS COUNCIL OF GOVERNMENTS PLANNING AND RESEARCH SERVICES 2005 Commercial Real Estate Survey The CMCOG Commercial Real Estate Report is an annual survey of the office and retail market within the Central Midlands Region. The analysis provides insight into recent development trends and economic vitality, which are essential components of the regional land use and transportation planning process. Key findings for the year 2005 include: • Office space in the Greater Columbia Area reported a 16.6% vacancy rate for 2005, a 3.0% decrease from last year. The market absorbed a total of 223,209 sq ft. • Retail space in the Greater Columbia Area reported a Prepared by: 11.1% vacancy rate, a 0.4% increase from last year. The CMCOG Staff market absorbed an average of 257,452 sq ft over the past three years. December 2005 • The 164 warehouses surveyed in the Greater Columbia Area contained 6,317,184 sq ft of gross leasable area. • The Greater Columbia Area reported 263 parcels of 236 Stoneridge Drive developable land for a total of 11,439 acres. Columbia, SC 29201 Phone: (803)376-5390 Fax: (803)376-5390 www.centralmidlands.org Price: $50.00 2005 Commercial Real Estate Survey Central Midlands Council of Governments Table of Contents CHAPTER 1 - OFFICE SPACE ...................................................................................... 1 1.1 SURVEY OVERVIEW............................................................................................ 1 1.2 FUTURE OFFICE SPACE..................................................................................... 1 1.3 OFFICE SPACE SURVEYED................................................................................ 1 1.4 DOWNTOWN - AREA 1 (CENTRAL BUSINESS DISTRICT)................................ 2 1.5 SOUTH COLUMBIA - AREA 2............................................................................... 2 1.6 NORTH COLUMBIA - AREA 4 .............................................................................. 3 1.7 EAST COLUMBIA - AREA 3.................................................................................. 3 1.8 ST. ANDREWS - AREA 5...................................................................................... 3 1.9 CAYCE/WEST COLUMBIA - AREA 6 ................................................................... 4 1.10 RICHLAND NORTHEAST - AREA 7 ................................................................... 4 1.11 DUTCH FORK/IRMO/CHAPIN - AREA 8 ............................................................ 4 1.12 LEXINGTON - AREA 9 ........................................................................................ 4 1.13 BATESBURG/LEESVILLE - AREA 10................................................................. 5 1.14 OFFICE SPACE - BY YEAR BUILT..................................................................... 5 1.15 OFFICE SPACE - BY LEASE RATES ................................................................. 5 1.16 OFFICE SPACE - BY SIZE AND SUBMARKET.................................................. 5 1.17 METHODOLOGY ................................................................................................ 6 CHAPTER 2 - 2005 RETAIL SPACE............................................................................ 28 2.1 SURVEY OVERVIEW.......................................................................................... 28 2.2 FUTURE RETAIL SPACE ................................................................................... 28 2.3 EXISTING RETAIL SPACE ................................................................................. 28 2.4 DOWNTOWN - AREA 1 (CENTRAL BUSINESS DISTRICT).............................. 29 2.5 SOUTH COLUMBIA - AREA 2............................................................................. 29 2.6 EAST COLUMBIA - AREA 3................................................................................ 29 2.7 NORTH COLUMBIA - AREA 4 ............................................................................ 29 2.8 ST. ANDREWS - AREA 5.................................................................................... 30 2.9 CAYCE/WEST COLUMBIA – AREA.................................................................... 30 2.10 RICHLAND NORTHEAST - AREA 7 ................................................................. 30 2.11 DUTCH FORK/IRMO/CHAPIN – AREA 8.......................................................... 30 - i - 2005 Commercial Real Estate Survey Central Midlands Council of Governments 2.12 LEXINGTON- AREA 9 ....................................................................................... 31 2.13 BATESBURG-LEESVILLE - AREA 10............................................................... 31 2.14 SHOPPING CENTERS - BY YEAR BUILT........................................................ 31 2.15 RETAIL SPACE - BY SIZE AND SUBMARKET ................................................ 32 2.16 HISTORICAL TRENDS - IN RETAIL SPACE .................................................... 32 2.17 METHODOLOGY .............................................................................................. 32 CHAPTER 3 - WAREHOUSE SPACE AND COMMERCIAL LAND SITES ................. 46 3.1 WAREHOUSE SPACE SURVEY........................................................................ 46 3.2 COMMERCIAL LAND SITES SURVEY............................................................... 46 CHAPTER 4 - FAIRFIELD COUNTY............................................................................ 62 4.1 SURVEY OVERVIEW.......................................................................................... 62 CHAPTER 5 - NEWBERRY COUNTY.......................................................................... 67 5.1 SURVEY OVERVIEW.......................................................................................... 67 CHAPTER 6 - KERSHAW COUNTY ............................................................................ 73 6.1 SURVEY OVERVIEW.......................................................................................... 73 CHAPTER 7 - CALHOUN COUNTY............................................................................. 78 7.1 SURVEY OVERVIEW.......................................................................................... 78 List of Tables Table 1.1 2005 Office and Distribution Buildings Planned for Construction Greater Columbia Area................................................................................................ 6 Table 1.2 2005 Office Absorption Figures (In Square Feet)............................................ 8 Table 1.3 2005 Office Space Survey By Area Greater Columbia Area ........................... 8 Table 1.4 2005 Office Space By Year Built ................................................................... 10 Table 1.5 2005 Completed Office Space By New Lease Rate...................................... 10 Table 1.6 2005 Completed Office Space By Building Size and Zone............................ 11 Table 1.7 Historical Trends in Office Space .................................................................. 12 Table 1.8 Summary of Office Space Surveys Greater Columbia Area 2005 ................ 13 Table 2.1 2005 Shopping Centers Under Construction Greater Columbia Area .......... 33 Table 2.2 2005 Shopping Centers Greater Columbia Area........................................... 33 Table 2.3 2005 (20,000 Sq. Ft. or Greater) Greater Columbia Area ............................. 34 Table 2.4 Existing Shopping Centers by Year Built (20,000 Sq. Ft. or Greater)............ 35 Table 2.5 2005 Shopping Centers by Size and Area Greater Columbia Area.............. 36 Table 2.6 2005 Historic Trends in Retail Space Greater Columbia Area...................... 38 Table 3.1 Distribution of Land by Current Zoning and County...................................... 47 Table 3.2 Average Warehouse Rental Rates ................................................................ 48 - ii - 2005 Commercial Real Estate Survey Central Midlands Council of Governments ABBREVIATIONS USED IN THIS SURVEY Lease Types F= Full Services, owner pays taxes, insurance and capital improvements (substantial repairs). N=Net Lease, owner pays only two of the items from above. D=Double net lease, owner pays only one of the items from the three above. T=Triple net lease, owner pays none of the three items listed above. Status of Construction UC=Under Construction UR=Under Renovation PL=Planned for Construction AREA MAPS Overview of Columbia Market Areas Area 1 – Downtown Area 5 – Saint Andrews Area 9 – Lexington Area 2 – South Columbia Area 6 – Cayce/West Columbia Area 10 – Batesburg-Leesville Area 3 – East Columbia Area 7 – Richland Northeast Area 4 – North Columbia Area 8 – Dutch Fork/Irmo - iii - Central Midlands Council of Governments CHAPTER 1 - OFFICE SPACE 1.1 SURVEY OVERVIEW The December 2005 survey of the Greater Columbia Area office market included 396 existing office properties totaling 12,926,725 square feet according to the annual survey conducted by the Central Midlands Council of Governments. The survey identified 2,145,038 square feet of available space for a vacancy rate of 16.6%. Since the last survey in December of 2004, rentable office space decreased 15.1 percent. The overall vacancy rate decreased 3.0 percent since