Industrial Market Continues to Climb
The industrial market is growing. A surprising thought considering allthe headlines that promise to reshape the economic landscape; notably Great Britain opting to leave the EU and the looming presidential election, yet industrial tenants and landlords continue to show confidence in Central Ohio. During the second quarter of 2016, the region saw 440,487 square feet of net absorption, constituting the 13th consecutive quarter of growth. Absorption numbers are up 8.7 percent year-over year reducing the overall vacancy rate to 6.1 percent– a 30
basis point reduction from the second quarter of 2015. Advances in technology and e-commerce are shaping consumer
shopping preferences, and warehousing companies are taking notice. Now tenants look to improve their logistics capabilities by moving into modern bulk space near transportation hubs. In Central Ohio, this kind of space is leasing rapidly. Major deals this quarter include XPO Logistics who leased 151,200 square feet at 4000 Creekside Pkwy in Lockbourne and Coty LCD who leased 144, 236 square feet at 147-163 Heritage Dr. in Etna.
Rising occupier demand and ever tightening market conditions have led to an influx of construction activity in the region. Central Ohio now has over 3.5 million square feet in the pipeline, marking the fifth consecutive quarter of construction levels over 3 million square feet. Amazon has positioned themselves on the forefront of this wave of
investment. The e-commerce giant will deliver two fulfillment centers to Central Ohio in 2016: one in Etna Township and the other at the Rickenbacker Global Logistics Park in Obetz.
> 3,591,064 square feet are currently under construction for industrial space. 2,575,000 square feet are build-to-suit developments, while 1,016,064 are speculative developments.
> Asking rents across all property types showed little movement from Q1 16. Warehouse/distribution rental rates slightly fell to $2.95 per square foot. The overall weighted asking rate now stands at $3.30 per square foot.