2020 Q1 Industrial Trends Report Columbus Colliers

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Research & Forecast Report
COLUMBUS | INDUSTRIAL
Q1 2020


As we publish this report, the U.S. and the world at large are facing a tremendous challenge, the scale of which is unprecedented in recent history. The spread of the novel coronavirus (COVID-19) is significantly altering day-to-day life, impacting society, the economy and, by extension, commercial real estate. The extent, length and severity of this pandemic is unknown and continues to evolve at a rapid pace. The scale of the impact and its timing varies between locations. To better understand trends and emerging adjustments, please subscribe to Colliers’ COVID-19 Knowledge Leader page for resources and recent updates.

The Columbus industrial market started the year on a positive note, recording 2,060,165 square feet of net absorption. In 10 of the past 11 quarters, the region has experienced absorption greater than 1 million square feet - a true testament to strong leasing activity, investment and development. This positive absorption drove vacancy down to 4.55 percent, which is over 30 basis points lower than a year ago. Overall asking rates remained stable at $3.44 per square foot, with rates for warehouses at $3.23 per square foot. General industrial properties saw the largest incline to $3.67 per square foot. The first quarter demonstrated growing demand from e-commerce companies and logistics providers, as Hormel Foods Corporation, Hims Inc., Hyperlogistics Group and FNS Inc. collectively leased over 1 million square feet around Central Ohio. These industries will continue to drive activity in Columbus, due to the area’s large influx of first-class industrial development. Construction activity remains solid with more than 8 million square feet of product currently underway - a majority of which is expected to reach completion throughout 2020.

VACANCY >>
The vacancy rate decreased slightly from 4.61 percent to 4.55 percent this quarter, as the market posted positive net absorption. The Licking submarket saw the largest vacancy decrease to 3.7 percent, as Hims leased space at the new Northeast 302 warehouse. The Madison submarket saw the most significant increase in vacancy to 6.17 percent, as a large speculative project completed, adding vacancy to the area.

MARKET ACTIVITY >>
Market activity is often correlated to positive or negative absorption. However, in cases when a tenant leaves one space for another, the positive and negative absorption cancels out. The Market Activity Volume (MAV), which is the absolute sum of absorption change in the market, gives a better idea of overall activity. This quarter, the MAV was 4.8 million square feet – a strong indication that tenants are continuing to stay active in the market.

CONSTRUCTION ACTIVITY >>
Construction activity remains high in the first quarter, as 25 projects are underway around the region. There is currently more than 8 million square feet under construction, which is nearly 5 million square feet more than in the first quarter of last year. The Licking, Madison and Southeast submarkets lead construction activity, each with over 800,000 square feet of speculative or build-to-suit product underway. Two properties totaling 2,032,010 square feet reached completion this quarter in the Madison submarket. Medline’s 1,200,000-square foot build-to-suit warehouse was finalized. The speculative property at 1020 Enterprise Pkwy. was also completed in West Jefferson, adding 832,010 square feet of available space to the market. With 50+ projects comprising of over 20 million square feet either planned or underway, Central Ohio can expect more large completions throughout the year.

SALES ACTIVITY >>
In the first quarter of the year, 15 industrial properties totaling 2.7 million square feet sold around Central Ohio for a total sales volume of $95 million. The average price per square foot reached $46. Exeter Property Group purchased a portfolio of two warehouses on Heritage Drive from Prologis for a total of $51.7 million, or $50 per square foot - the largest sale of the quarter. Southern Glazer’s Wine-Spirits bought 4800-4850 Poth Road for $16 million. 427 and 457 N. Cleveland Ave. sold to Kelley Companies for a total of $8.15 million.

 

 


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2020 Q1 Industrial Trends Report Columbus Colliers

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Michael Linder | Colliers International | Columbus

Michael Linder

Senior Executive Vice President | Principal

Columbus

Michael R. Linder, SIOR is a member of the Columbus Industrial Team at Colliers International along with Shane Woloshan, SIOR, Joel Yakovac, SIOR, Jonathan Schuen, SIOR,  Kyle Ghiloni, and Molly Crosby, Mike works with owners and tenants in the leasing, sale, and development of industrial properties, primarily in the southeast and southwest markets. He has been involved in real estate for over twenty years.

Mike is a member of the Colliers Logistics and Transportation Solutions Group (L&T). L&T is a select group of specialists dedicated to delivering focused solutions to the increased challenges of today’s global shipping and transportation community. With the group, he has traveled throughout North America as well as South America on port tours to understand what drives demand to Columbus, Ohio and to set new standards for delivering clients the most advanced resources and service.

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Shane Woloshan | Colliers International | Columbus

Shane Woloshan

Senior Executive Vice President | Principal

Columbus

Shane E. Woloshan, SIOR is a member of the Columbus Industrial Team at Colliers International along with Michael Linder, SIOR, Joel Yakovac, SIOR, Jonathan Schuen,  SIOR, Kyle Ghiloni, and Molly Crosby, Shane specializes in industrial leasing, investment sales and tenant representation. Throughout Shane’s fifteen year career in commercial real estate he has established himself as one of the prominent names of industrial real estate in Columbus, Ohio. Shane has provided his expertise to major corporations, local companies, investors and developers. In addition, he also earns referrals and repeat business from his many satisfied clients. Shane’s market knowledge, relationships, prompt follow up and attention to detail enable him to successfully complete assignments for his clients.

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Joel Yakovac | Colliers International | Columbus

Joel Yakovac

Senior Executive Vice President | Principal

Columbus

Joel R. Yakovac is a member of the Columbus Industrial Team at Colliers International along with Michael Linder, SIOR, Shane Woloshan, SIOR, Jonathan Schuen, SIOR, Kyle Ghiloni, and Molly Crosby, Joel specializes in industrial sales and leasing. He focuses on new business development and prospecting new tenants, buyers, landlords and sellers. Joel works with local companies throughout Central Ohio as well as large corporations across the United States.

Through extensive work, the willingness to go above and beyond and a vast grasp of the Columbus industrial market, Joel ensures clients have professional and efficient representation to expedite successful transactions.

 

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Jonathan Schuen | Colliers International | Columbus

Jonathan Schuen

Vice President

Columbus

Jonathan R. Schuen, SIOR is a member of the Columbus Industrial Team at Colliers International along with Michael  Linder, SIOR, Shane Woloshan, SIOR, Joel Yakovac, SIOR, Kyle Ghiloni, and Molly Crosby.  Jon specializes in industrial sales and leasing. He brings an exceptional work ethic to a team of seasoned real estate advisors which he works closely with on new business development and prospecting new tenants, buyers, landlords and sellers.

 

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Kyle Ghiloni | Colliers International | Columbus

Kyle Ghiloni

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Columbus

Kyle M. Ghiloni is a member of the Columbus Industrial Team at Colliers International along with Michael  Linder, SIOR, Shane  Woloshan, SIOR, Joel Yakovac, SIOR, Jonathan Schuen, SIOR  and Molly Crosby.  Kyle provides a unique level of experience having been mentored by the Columbus Industrial Team for three years prior to his college graduation. Kyle’s persistence and desire to learn adds yet another dimension to a team of seasoned real estate advisors.

Kyle began his stint at Colliers as a Brokerage intern in 2016. He continually earned extensions by proving himself as a valuable asset to the team. Once Kyle recieved his license he began prospecting and bringing deals to the team; completing some on his own. His effectiveness in prospecting and attention to detail led to his promotion to Brokerage Associate two years prior to recieving his Bachelor’s degree. In June 2019, Kyle offically joined the Industrial Services Group as a Broker in Training.

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