Expert Outlook: Commercial Property Outlook for Columbia, MO in 2023
Get Insight on Mid-Missouri Commercial Real Estate From the Professionals at Lindner Properties
We’re well into 2023 by now, and as experts are beginning to make observations, business owners in Columbia, MO are beginning to wonder what the state of commercial real estate will look like. The rapid changes in the economy resulting from the COVID-19 pandemic have caused some shifts in the market, but surprisingly, the commercial real estate market has been resilient. At the same time, there has been talk of a potential recession occurring across the country.
The national predictions for commercial real estate, however, may not apply quite the same to the state of Missouri. The recovery rate is varied based on location and different industries, along with several other factors. The question is: how does 2023 look for the Columbia, MO area for those in the commercial real estate market?
What experts know about commercial real estate in mid-Missouri so far
Around this time last year in Q1 of 2022, Columbia, MO commercial real estate was not as strong as the national market overall. However, the office industry performed better than the general U.S. market, as well as overall economic conditions. In terms of population, Columbia, MO is seeing an annual growth rate of 1.37%, and the population has increased 4.22% since 2020.
As of January 2023, the unemployment rate in the state of Missouri was 2.7%, which is a 0.2% decrease from the same month last year. Only eight other states in the country had an unemployment rate below or equal to this rate this past January. In addition, the unemployment rate is even lower in Columbia, MO specifically (about 1.7% in December 2022).
Being a classic college town, Columbia, MO will always have an audience of young adults living in the area. Located perfectly between Kansas City and St. Louis, this town attracts many passersby on top of a population of over 124,000 residents. Since Lindner Properties features so many locations for rent in Columbia, MO, you’re sure to find a spot that best fits the demographic you want to reach.
Predicted trends of commercial real estate in mid-Missouri for 2023
Overall, the outlook for commercial real estate in Columbia, MO in 2023 holds promise. The city is experiencing some economic growth as unemployment levels are dropping and job growth is increasing. Vacancy rates are expected to remain low, and rental rates will continue to rise. It would be unwise to completely dismiss Columbia, MO as a commercial real estate opportunity.
Things seem to be looking up according to commercial real estate professionals this year. On one hand, 65% of business leaders feel good about the state of the commercial property industry. Yet, 55% think another recession is around the corner. Despite these contradictory viewpoints, the outlook for commercial real estate is positive.
There are several reasons for this optimistic view. First, rental rates have stabilized in many markets, after several years of decline. In addition, the demand for office and retail space is on the rise, which is good news for landlords and investors. Overall, commercial real estate in Columbia, MO looks to be on the upswing for the near future. While there may be a recession in the future, the current market conditions suggest that the commercial property industry is in a good place. With Lindner Properties, we offer you more than just a space for rent. Our experts consider the needs of your business, and we determine which location will best serve your target market.
What is the Outlook for Different Commercial Industries in Columbia, MO?
Find restaurant space for lease in mid-Missouri through Lindner Properties
Columbia, MO is in the market for a diverse range of restaurant options if you are looking to promote your business in the food industry. As people’s lives have changed since the pandemic, they have shifted to a more service-based society, and there will be many residents in mid-Missouri that want plenty of restaurant choices at their disposal. Lindner Properties features restaurant space for lease in mid-Missouri for national and local businesses alike. Whether you’re starting a new Japanese restaurant, or you’re planning to open another Chipotle in town, we’ve had experience with all kinds of restaurants in Columbia, MO.
As inflation continues to loom over the mid-Missouri area, this could affect property values for restaurants and the pricing of inventory. This could mean that restaurants in Columbia, MO will need to make changes to their operations in order to stay competitive and stay within their budget. Additionally, restaurants may need to look into alternative sources of income, such as catering or delivery services, in order to keep their prices in line with the cost of living.
If you plan on opening a restaurant in mid-Missouri, there are several opportunities to thrive through Lindner Properties. We can help you through the complicated bureaucratic zoning process, so you can find a location you like without having to worry about putting your dream restaurant on hold.
The office space in Columbia, MO isn’t dying, it’s evolving. Business space for rent will continue to grow in mid-Missouri
Despite the huge emergence of hybrid work environments, offices in Columbia, MO expect to make a comeback and are still a valuable investment to make. According to EY, 58% of business leaders plan to invest in the office workspace this year, and 90% of leaders want to reimagine the blueprint of their office. This reimagining could entail a number of things such as downsizing, remodeling, or relocating.
The office space industry in Columbia, MO has seen a rise in demand as businesses look to grow and expand operations. As of now, LoopNet reports that the average cost for office space for lease is approximately $14.83 per square foot. Local business owners in the mid-Missouri area are searching for flexible, modern workspaces that are equipped with the latest technology and amenities to accommodate an ever-changing hybrid work environment. Offices in Columbia, MO can provide these amenities while also offering an environment that encourages productivity for employees. As one of the area’s top commercial real estate experts, Lindner Properties features several office spaces in a range of locations in Columbia, MO. Whether you think your business would perform better in the Nifong Shopping Center or Broadway Bluffs, our commercial real estate professionals can help you find the optimal space for your company’s office.
Industrial properties for rent in mid-Missouri have a positive outlook
Because economic growth is likely for Columbia, MO this year, industrial properties are expected to do well. This is good news if you plan on finding a space for your warehouse, manufacturing, storage, and so much more! There is also a rising trend in e-commerce, leading to a growing demand for more distribution centers in the mid-Missouri area. By calling Lindner Properties, we will make sure you are operating in the best building for your industrial business.
The predictions on retail space for lease in the Columbia, MO area
Retail space is predicted to be a difficult industry this year in Columbia, MO. To succeed in retail, it will highly depend on having a good location, being in a relevant category to the area, and spacious surface area. Department stores could be a lucrative investment in mid-Missouri given the right resources. The same goes for shopping centers now that people are missing the shopping experience since the pandemic. Lastly, grocery stores and other service-based locations did particularly well in 2022, as the market size value was $11,618.8 billion.
Since the Columbia, MO economy may perform differently than the national predictions, retail could very well be a worthwhile industry to rent space for. Whether you’re selling clothes, groceries, equipment, or anything else for retail, Lindner Properties can find you the perfect location for an amazing price in mid-Missouri!
Contact Lindner Properties to Get Even More Exclusive Insight on Commercial Real Estate in Columbia, MO
The most important factors to a successful industry are having useful resources by your side, a good understanding of your customers, and the right location in town. Lindner Properties has been helping mid-Missouri businesses find the best commercial properties for 43 years, and we don’t plan on stopping anytime soon. We understand that different businesses in Columbia, MO have different needs, and we work hard to help them find the perfect location that meets your standards.
Whether you’re looking for a storefront, office space, industrial space, or something else, our experienced team of commercial real estate pros are here to help you. We have access to hundreds of properties throughout mid-Missouri, and there’s sure to be one in store for you. Contact us to learn more about our services and to start your search for the perfect commercial property today.
