Published April 18, 2013
Momentum in the northeast Columbia office market appears to building with announcements of lease agreements at Pinnacle Point Business Park.
All of the leases, totaling some 78,000 square feet, are for first-generation, Class “A” office space, said Macon Lovelace, a broker at NAI Avant. The business park is near the intersection of Farrow and Rabon roads, near the Interstate 77 interchange.
Lovelace said the office park’s owner, John H. Bailey, CEO and partner of The Climatic Development Corp., has leased space to XPO Logistics and Alliant ASO in a Class “A” office building at 1021 Pinnacle Point. Each company signed long-term leases to occupy 6,000 square feet.
Stock Building Supply, another new tenant, is moving into 55,000 square feet or half the 110,000-square-foot office/distribution facility at 130 Pinnacle Point. Stock will use the facility for a light manufacturing distribution center supplying the company’s facilities in the Carolinas.
In addition, the developer has completed construction of the park’s newest facility, a 30,000-square-foot Class “A,” multitenant garden office building at 1074 Pinnacle Point.
The developer and two of its subsidiaries are occupying about half of the new building. Fowler Hospitality Inc., a regional hotel developer and management group, will occupy about 3,000 square feet of space in the building beginning May 1.
About 13,000 square feet in the building remains to be rented, Lovelace said.
Lovelace also noted that a 3,000-square-foot dentist’s office is under construction across the street from 1074 Pinnacle Point.
As the vacancy rate of the downtown office market drops to single digits, Lovelace said he thinks there’ll be more demand for space in the northeast Columbia submarket.
“I think tenants are still price conscience,” Lovelace said. “But whereas two years you’d have no chance of getting a deal to build-out first-generation space, now folks feel more sure about where the economy is going and are willing to commit to a longer-term lease to get the space and location they want.”
According to a recent first-quarter survey of office space, the northeast Columbia submarket registered a 22.9% vacancy rate for Class “A” space. The northeast market’s overall office vacancy rate was nearly 34%.