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Columbus metropolitan area ranks among top 10 for industrial completions since 2010, study shows

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Columbus ranks among the top 10 metropolitan areas for industrial completions since 2010, according to a new report.

Commercial real estate listing service 42Floors released a study analyzing the evolution of commercial real estate development over the past decade, using construction data from CommercialEdge, a real estate technology platform. Only properties larger than 25,000 square feet were included.

The Columbus metropolitan area ranked ninth for industrial completions from 2010 to 2021, the study shows. The Columbus metro added nearly 55 million square feet during that time, ranking just below the New York-Newark-Jersey City MSA and just above the Kansas City MSA. Here's the top 10:

  1. Dallas-Fort Worth-Arlington, Texas — 215.7 million square feet
  2. Riverside-San Bernardino-Ontario, California — 188.6 million square feet
  3. Chicago-Naperville-Elgin, Illinois, Indiana, Wisconsin — 163.5 million square feet
  4. Houston-The Woodlands-Sugar Land, Texas — 140.7 million square feet
  5. Atlanta-Sandy Springs-Alpharetta, Georgia — 92.1 million square feet
  6. Phoenix-Mesa-Chandler, Arizona — 76.5 million square feet
  7. Indianapolis-Carmel-Anderson, Indiana — 69.4 million square feet
  8. New York-Newark-Jersey City, New York, New Jersey, Pennsylvania — 64.2 million square feet
  9. Columbus — 54.6 million square feet
  10. Kansas City, Missouri — 51 million square feet

Third quarter reports from real estate firms JLL, CBRE and Colliers also provide insight on how the Columbus industrial market is faring more recently.

JLL reports more than 16 million square feet of product was under construction and 5.2 million square feet broke ground in the third quarter. All of the 5.2 million square feet that broke ground last quarter is considered speculative space, according to JLL. The firm said pre-leasing activity "remains robust" but is occurring closer to project completion compared to years past.

"Vacancy remains at a staggeringly low rate of 2.1%, so new speculative projects are warranted," JLL said in its report.

CBRE's report had vacancy rates slightly lower at 1.9%, and Colliers report was a bit higher at 2.2%. But all three reports noted that vacancy rates rose from the second quarter, albeit at a minimal rate.

The reports were also marginally different in terms of construction in the third quarter. CBRE reported 12 million square feet under construction, while Colliers was closer to JLL's data at 15.3 million.

Despite the slight variations in data, all of the reports indicate the Columbus industrial market continues to hum despite effects from inflation, and that low vacancy rates will necessitate continued construction to keep pace with market demand.