Columbia’s industrial market is evolving into a competitive contender in the Southeast, with only a low 4.7 percent vacancy rate. The Scout Motors manufacturing project is a huge win for Richland County and the Midlands and will bring back the iconic Scout SUV (and pick-up truck). The 4,000 jobs on 1,600 acres is greatly anticipated.
South Carolina was the fastest growing state in 2024, according to U-Haul, and near the top in 2025, with no signs of slowing. Columbia is in the middle of this steady growth with its central location as an excellent logistics hub with I-20, I-77 and I-26 and less than two hours from the Port of Charleston.
Growing inventory
The Columbia industrial market now contains approximately 81 million square feet of inventory, reflecting steady expansion over recent years. Despite being smaller than major logistics markets, Columbia stands out due to its active construction pipeline, with nearly 4 million square feet under development as of late 2025.
This represents one of the highest development ratios among comparable secondary markets, signaling strong investor confidence and long-term growth expectations. Much of this new supply is concentrated in:
• Build-to-suit logistics facilities
• Large-scale speculative distribution centers
• Advanced manufacturing spaces
Demand, fundamentals
Columbia’s debut as an emerging logistics hub is largely driven by its strategic geographic positioning at the intersection of I-26, I-77 and I-20, allowing efficient access to major Southeastern markets. A major catalyst for demand is the rise of last-mile delivery infrastructure, particularly along the Shop Road corridor, where new logistics hubs and infrastructure improvements are enhancing distribution efficiency.
These factors have:
• Increased demand for modern warehouse space
• Accelerated the conversion of Class B industrial properties
• Reinforced Columbia’s role in regional supply chains
Rental rates and asset values have shown strong upward momentum, driven by a combination of strong development activity, rising investor demand and affordable cost of living compared to other parts of the country. Average asking rents are $6.67 per square foot (triple net) across all class types.
Sales pricing reached $65.98 per square foot in 2025, which blends in older properties; however, the typical value is in the $85 to $100 range.
Of note
Industrial outdoor storage (IOS) assets are commanding premium pricing, based on the attraction of yard storage as a beneficial value versus keeping all equipment and merchandise inside a warehouse.
Transaction volume remains moderate, but pricing gains highlight high investor confidence. Recent transactions illustrate strong leasing activity, including a recent 159,000-square-foot deal at 101 Enterprise Parkway to Anord Mardix, a Flex company, which is a global leader in data center supply and protection.
There have also been a few industrial redevelopments that have been very well received, such as the redevelopment at the former IPG site at the intersection of I-77 and Shop Road, with Cohn Construction winning awards for reimagining the abandoned manufacturing site into a Class A industrial park.
Industrial employment growth remains steady but moderate (approximately 1 percent), supported by manufacturing expansion. While not explosive, this consistent growth provides a stable foundation for long-term demand with a solid labor force.
Outlook
Looking ahead, Columbia is expected to maintain strong momentum through 2026 and beyond, supported by:
• Continued industrial development pipeline
• Expansion of last-mile logistics infrastructure
• Ongoing infrastructure investment (e.g., Carolina Crossroads project, Atlas Road widening)
• Rising institutional investor interest
• Strategic geographic positioning
While short-term absorption has moderated, the market’s long-term fundamentals remain highly favorable, positioning Columbia as one of the top emerging industrial markets in the Southeast.
— By George McCutchen and James Rogers, senior brokers and principals at Wilson Kibler. This article was originally published in the May 2026 issue of Southeast Real Estate Business.