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2020 Q3 Industrial Trends Columbus Colliers

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Research & Forecast Report
COLUMBUS | INDUSTRIAL
Q3 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 continued a strong year with a record third quarter, posting 3,660,680 square feet of positive net absorption. The ongoing COVID-19 pandemic has caused the already rising e-commerce industry to skyrocket in recent months, indicated by an influx of demand from these types of users. Due to this sustained demand, Columbus has seen absorption greater than 1 million square feet in 12 of the past 13 quarters. Additionally, this quarter marks the highest absorption in a single quarter since 2016. Despite recording positive absorption, vacancy slightly increased to 4.9 percent, as nearly 1 million square feet of new available speculative development was added to the market. This first-class space also caused overall and warehouse/distribution rates to rise, to $3.88 per square foot and $3.67 per square foot, respectively. In the past quarter, more than 4 million square feet of product broke ground and the number of users looking for industrial space increased from 102 to 120 tenants, demonstrating the strength of the industrial market. Central Ohio can expect continued activity in coming months as COVID-19 fuels growth in the industrial sector.


VACANCY >>
Due to the addition of new availability from completed speculative development, the vacancy rate rose slightly from 4.56 percent to 4.9 percent in the third quarter. The largest vacancy of the quarter occurred in the Southeast submarket, as Pier 1 Imports vacated over 1.1 million square feet of space at 5235 Westpoint Drive. The West submarket saw the most significant decrease in vacancy to 3.74 percent, as Rogue Fitness, Stanley Electric and Vista Packaging occupied space there.

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 7.4 million square feet – 3 million square feet higher than last quarter and an indication that tenants are continuing to stay active in the market.

CONSTRUCTION ACTIVITY >>
Construction activity rose in the third quarter, as eight projects totaling 4 million square feet broke ground. This brings total product under construction to 9.2 million square feet, which is the most there has been in the entire year. The Southeast, Fairfield and Licking submarkets lead construction activity, each with over 1.2 million square feet of speculative or build-to-suit development underway.

Fourteen properties totaling 4.4 million square feet reached completion this quarter - a record high for the Columbus market. The 1,232,149-square-foot warehouse at 8591 Mink St. and 1,059,000-square-foot warehouse at 1260 London Groveport Road were both finalized and pre-leased by the same large user. With 40+ projects comprising of nearly 20 million square feet either planned or underway, Central Ohio can expect more large completions throughout the next year.

SALES ACTIVITY >>
This quarter, 21 industrial properties totaling 2 million square feet sold in Central Ohio for a total sales volume of $100 million. The average price per square foot reached $66, which is higher than the average in the third quarter of last year.

DHL purchased 2829-2869 Rohr Road from Ares Real Estate Management for $62 million, or $52 per square foot - the largest sale of the quarter. Exeter Property Group sold 4531 Industrial Center Drive for $9.43 million in an investment sale. IKO Industries Ltd. bought 1695 Watkins Road for $5.46 million and Advent Construction purchased 5354 N. Hamilton Road for $3.6 million, or $232 per square foot.

 

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2020 Q3 Industrial Trends Columbus Colliers

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Michael Linder

Senior Executive Vice President | Principal

Columbus

Michael R. Linder, SIOR is a member of the Columbus Industrial Team at Colliers along with Shane Woloshan, SIOR, Joel Yakovac, SIOR, Jonathan Schuen, SIOR,  Kyle Ghiloni, Molly Crosby, and Sydney Sleeper. 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

Senior Executive Vice President | Principal

Columbus

Shane E. Woloshan, SIOR is a member of the Columbus Industrial Team at Colliers along with Michael Linder, SIOR, Joel Yakovac, SIOR, Jonathan Schuen,  SIOR, Kyle Ghiloni, Molly Crosby, and Sydney Sleeper. 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

Senior Executive Vice President | Principal

Columbus

Joel R. Yakovac is a member of the Columbus Industrial Team at Colliers along with Michael Linder, SIOR, Shane Woloshan, SIOR, Jonathan Schuen, SIOR, Kyle Ghiloni, Molly Crosby, and Sydney Sleeper. 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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Benjamin Johnson

Executive Vice President

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Ben is a member of the Industrial Services Group at Colliers International. He has brokered the sale of millions of square feet of industrial and office space. Ben advises both owner-occupant and investor buyers and sellers in numerous transactions. He Also works with landlords and tenants to complete industrial and office leases, helping his clients identify opportunities and achieve favorable terms. Ben specializes in industrial sales, leasing, land development and investment sales. He has a unique understanding of site selection, the development process, and financial analysis. He also acts as a consultant for his clients in numerous commercial real estate transactions including planning, investment, advisory, and development assignments.

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Jonathan Schuen

Senior Executive Vice President

Columbus

Jonathan R. Schuen, SIOR is a member of the Columbus Industrial Team at Colliers along with Michael  Linder, SIOR, Shane Woloshan, SIOR, Joel Yakovac, SIOR, Kyle Ghiloni, Molly Crosby, and Sydney Sleeper.  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

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Kyle M. Ghiloni is a member of the Columbus Industrial Team at Colliers along with Michael  Linder, SIOR, Shane  Woloshan, SIOR, Joel Yakovac, SIOR, Jonathan Schuen, SIOR, Molly Crosby, and Sydney Sleeper.  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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