Q1 2026 Market Outlook
Industrial
“The Columbia industrial market continues to see strong momentum driven by the transformational Scout Motors project in Blythewood, which is catalyzing supplier demand, build-to-suit development, and heightened tenant activity across the region. We are seeing increased interest in the 50,000 to 150,000-square-foot range as users look for flexible industrial space tied to manufacturing and 3PL users. Capital markets activity also remains healthy, highlighted by a recent transaction trading around a 6% cap rate, reflecting continued investor confidence in the Columbia market.”
– John Gregory, PE, SIOR, CCIM | Shareholder | NAI Columbia
View full Industrial Report here
Office
“The Columbia office market entered the first quarter of 2026 where top-tier Central Business District (CBD) assets are significantly outperforming the broader market. While the overall metro vacancy rate is still a respectable 6.8%, the CBD remains much tighter at approximately 5.8%, driven by consistent demand from the government, legal, and financial sectors. This scarcity of premium space has pushed Class A asking rents in downtown Columbia to record highs, in contrast to the suburban average. With no new speculative office construction delivering for the third consecutive year, the market is facing a supply squeeze that favors landlords of well-located, amenitized buildings.”
– Jeff Hein, SIOR | Shareholder | NAI Columbia
Retail
“What we’re seeing in Q1 2026 is a market that has earned its resilience. Vacancy in the low 3% range, rents climbing toward the mid-$30s in prime locations, and a development pipeline that keeps growing the fundamentals here are as strong as we’ve seen them. The diversity of Columbia’s economic base, from Fort Jackson to the University of South Carolina to a surge in advanced manufacturing gives this retail market a durability that most metros simply can’t match. We’re not riding a wave, we’re building a foundation.”
– Patrick Palmer, CCIM | Shareholder | NAI Columbia
