Staff Report
Published Jan. 4, 2012

The Midlands should see an increased demand for office space, industrial properties and distribution facilities in 2012, according to a commercial and industrial real estate forecast by Grubb & Ellis Co.

In its annual forecast, the company also projected greater investment in office and industrial products, but added that volume will remain highest for multiple housing complexes.

“In Columbia, most financing was limited to owner-occupied properties over the last four years, but that is changing,” the report said.

While the economic recovery has been sluggish across the South, Grubb & Ellis’ survey of local business conditions showed some improvement in the office and industrial real estate markets.

Breakdown by sectors

Office space: Most activity will come from existing tenants whose leases have expired or who are looking to upgrade or relocate. Effective rents are expected to increase.

Industrial/distribution: Containerized cargo that goes through the Port of Charleston and other major seaports in the region is a major driving force of industrial and warehouse demand.

“The Columbia market will benefit from its access to the port, highway infrastructure and Boeing,” the report said. “Both manufacturers and distributors will be active, leading to build-to-suit developments.”

Retail: Columbia has witnessed some retail redevelopment projects in the past six months, the report said, but retailers are playing it safe when it comes to expansion.