Columbia, South Carolina

LOCAL ECONOMIC GROWTH

COLUMBIA SUBMARKETS

Market Summary
The vacancy rate for the Columbia apartment market has increased from 8.0% in April 2006 to 8.2% in April 2007.

Demand for the six months ending April 2007 was relatively strong with 343 units absorbed and significantly higher than the 12 units absorbed in the preceding 6 month period. However, new completions outpaced new demand.

There were 507 completions recorded in the last six months and 2,284 units are currently under construction which represents a 37% increase in construction activity over the prior 6 month period. Construction activity is expected to continue in the coming years with 2,968 units proposed for the Columbia market.

Average rents have increased to $670 per month with samestore rents increasing by 2.6% over the past year. Breaking average rents down by unit type, one-bedroom units average $570 per month, two-bedroom units rent for $682 on average, and three-bedroom units average $842 per month.

With demand slightly trailing new supply at the moment, the vacancy rate is likely to increase somewhat over the next twelve months as additional supply enters the
market.