2017 Q1 Columbus Industrial Knowledge Report

Download research report

Following a Robust 2016, Columbus Market Cools Off

As consumer spending, GDP, and trade relationships fluctuate, the industrial market experienced a similar cycle. Coming off a recordbreaking year of absorption, Central Ohio saw a temporary slowdown in leasing activity at the close of the first quarter, posting 529,844 square feet of negative net absorption. The vacancy rate, however, decreased 60 basis points year-over-year to 5.5 percent–proving the market remains tight. According to The Colliers International National Industrial Report, Columbus prevails as a top emerging market because of the flexibility, location, and growing economy it has to offer.

Flex space enjoyed the largest increase in average asking rents to $6.54– a 2.2 percent increase from last quarter. Warehouse distribution rates remained stable for the third consecutive quarter, while general industrial properties saw a slight uptick to $3.59. The overall asking rate slightly fell this quarter to $3.33. Columbus currently has over 3.2 million square feet of construction in the pipeline, and 2.3 million of that are build-to-suit projects. At the close of the first quarter, the industrial market recorded 531,483 square feet of completed projects, including a 264,000-square-foot speculative warehouse at 8820 Smith’s Mill Road in Licking County. The largest project under construction is Sofidel’s 1,950,000-squarefoot development to be completed in 2018.

Key Takeaways
> After posting record-breaking absorption last quarter, industrial leasing activity cooled off posting negative net absorption of 529,844 square feet.
> The overall vacancy rate is 5.5 percent– a 60 basis point decrease from the same quarter of last year at 6.1 percent.
> Industrial flex space posted the largest occupancy gains this quarter with 91,234 square feet occupied, while the North submarket also saw the largest gain with 82,231 square feet absorbed.


Industrial Search

2017 Q1 Columbus Industrial Knowledge Report

Download Report