2016 Finishes Strong
The fourth quarter restored competitiveness to the office market after a turbulent third quarter that was shaken by the election. The Central Ohio office market posted 457,482 square feet of net absorption, up from the 41,234 square feet recorded during the previous quarter. The vacancy rate continues to decline, dropping 90 basis points year over year. The Columbus office market recorded its 19th consecutive quarter of positive growth.
Average asking rental rates decreased slightly this quarter as the overall rent dropped to $18.31- nearly a 2 percent decrease this quarter. Class A rates experienced a slight downtick to $20.68 per square foot, as well as Class B rates, which fell to $17.37 per square foot. However, as the market remains landlord driven, average asking
rental rates are expected to rise again. Construction companies and developers remain busy as demand for
high-quality space rises in Columbus. With no projects completed this quarter, over 700,000 square feet is now under construction in Central Ohio. Projects still under construction include Phase One of Bridge Park in Dublin, the Buggyworks renovation in the Arena District, Grandview Yard in Grandview and The Pointe at Polaris Fashion Placeall four of which are highly anticipated by tenants around the market.
> The Columbus market posted 457,482 square feet of net absorption this quarter- almost 400,000 square feet more than last quarter. The total absorption for the year is 764,492 square feet.
> Vacancy rates have been declining for the last six years, as this quarter saw another decrease to 7.8 percent.
> Class A properties enjoyed the most gains during the fourth quarter with 224,840 square feet of net absorption- a testament to the demand for high-quality space.