Moderate Gains After Holiday Season

The Columbus retail market, comprised of Franklin County and the surrounding six counties, posted moderate gains during the aftermath of the 2015 shopping season. During the first quarter of 2016, Columbus recorded 17,107 square feet of positive net absorption, or the net change in occupied square feet, down 32 percent compared
to the same quarter last year. Although post-holiday spending may have slowed growth this quarter, gains were enough to drive down the overall retail vacancy rate 20 basis points to 6.6 percent– an impressive turnaround from the recession-era high of 13.2 percent. Asking rental rates saw an uptick during the first quarter due to
tightening market conditions. Relative to the previous quarter, anchored strip rates increased three percent to $11.47 per square foot, and community rates rose two percent to $11.48 per square foot. The overall weighted asking rent now stands at $11.57 per square foot. Construction levels are on the rise as developers began to
respond to low availabilities. Major projects include Dublin Green, a 400,000-square-foot power center at State Route 161 and U.S. Highway 33, the Shoppes at East Broad, a 195,000-square-foot neighborhood center in Reynoldsburg and Dublin’s Bridge Park Phase One will include over 130,000 square feet of restaurant/retail space.

Key Takeaways
> The overall vacancy rate fell 20 basis points to 6.6 percent during the first quarter. Vacancy rates have been on the decline since 2009
> Asking rental rates showed a slight upward bump. The overall weighted asking rent rose three percent to $11.57 per square foot compared to the previous quarter
> 1,172,697 square feet are currently under construction for retail space. Major projects include Dublin Green, a 400,000-square-foot power center in Jerome Township and the Shoppes at East Broad, a 195,000-square-foot neighborhood center in Reynoldsburg.
> Anchored strip centers posted the most gains this quarter with 71,170 square feet of positive net absorption.