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2020 Q4 Industrial Trends Columbus Colliers

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Research & Forecast Report
COLUMBUS | INDUSTRIAL
Q4 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 finished 2020 with a strong fourth quarter, posting 2,184,850 square feet of net absorption. This brings year-to-date net absorption to over 10.6 million square feet - the highest annual absorption the Columbus market has ever recorded. The already thriving industrial sector has skyrocketed this year, as the e-commerce industry has grown exponentially due to the ongoing COVID-19 pandemic. Sustained demand in prime warehouse space has yielded absorption greater than 1 million square feet in 13 of the past 14 quarters in Central Ohio. This activity drove vacancy down in the fourth quarter, from 4.9 percent to 4.74 percent. Overall asking rates held steady at $3.89 per square foot, but new speculative availability increased rates for warehouse/distribution properties to $3.74 per square foot. In the past quarter, nearly 2 million square feet of product broke ground and the number of users looking for industrial space increased to 130 tenants, demonstrating the resiliency of the industrial market. Central Ohio can expect continued activity in the new year as COVID-19 fuels demand in the industrial sector.


VACANCY >>
The vacancy rate declined from 4.9 percent to 4.74 percent in the fourth quarter due to positive net absorption. The largest vacancy of the quarter occurred in the Southwest submarket, as Stonecrop Technologies vacated 527,127 square feet of space at 3500 Southwest Drive. The Southeast submarket saw the most significant decrease in vacancy to 5.27 percent, as TJX Companies, KDC/One and Synnex 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 6.9 million square feet – a strong indication that tenants are continuing to stay active in the market.

CONSTRUCTION ACTIVITY >>
Construction activity remains high, as six projects totaling 1.8 million square feet broke ground this quarter. This brings total product under construction to 7,123,430 square feet - the sixth consecutive quarter with over 7 million square feet underway. The Southeast, Madison and Pickaway submarkets lead activity, each with over 1 million square feet of speculative or build-to-suit development under construction. Eight properties totaling 2.5 million square feet reached completion this quarter. The 555,000-square-foot speculative warehouse at 6200 Canal Winchester Blvd. and the 488,000-square-foot FedEx build-to-suit were both finalized. Six additional buildings were also completed, adding prime availability to the market. With 43 projects comprising of over 18 million square feet either planned or underway, Central Ohio can expect more large completions throughout the next year.

SALES ACTIVITY >>
This quarter, 16 industrial properties totaling over 2.5 million square feet sold in Central Ohio for a total sales volume of $194 million. The average price per square foot reached $71, which is $25 higher than the average at the beginning of the year. Monmouth Real Estate purchased 8341 Industrial Pkwy. for $73.3 million, or $150 per square foot - the largest sale of the quarter. Green Door Capital sold 5330 Crosswind Drive to STAG Industrial for $55.55 million in an investment sale. Exeter purchased 870 Claycraft Road from FedOne for $20 million and 2221-2303 John Glenn Ave. from Westmount Realty Capital for $14.2 million.

 

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2020 Q4 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

Columbus

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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Columbus

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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