Research & Forecast Report
COLUMBUS | INDUSTRIAL
As the COVID-19 pandemic continues to fuel demand for prime warehouse space, the Columbus industrial market posted 2.8 million square feet of net absorption in the second quarter. The region has seen absorption greater than 2 million square feet consecutively in the past six quarters, which has driven vacancy down to 3.68 percent - the lowest it has ever been. Construction also remains steady, as over 10 million square feet of product is currently underway and 2 million square feet of space completed this quarter. Consistent demand in industrial space will further impact the Columbus market through the rest of 2021.
Another quarter of positive net absorption drove the vacancy rate down from 4.02 percent to 3.68 percent. The largest vacancy of the quarter occurred in the Southeast submarket, as Novotec vacated 188,000 square feet at 3960 Groves Road. The Fairfield submarket saw the most significant decrease in vacancy to 2.34 percent, as four tenants occupied a combined 1.4 million square feet there this quarter.
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 7.5 million square feet – a strong indication that tenants are continuing to stay active in the market.
CONSTRUCTION ACTIVITY >>
Development continues to grow in Columbus, as 15 projects totaling 6.5 million square feet broke ground this quarter alone. This brings total product under construction to 10.1 million square feet - the eighth consecutive quarter with over 5 million square feet underway. The Licking, Pickaway and Southeast submarkets lead activity, each with over 1.7 million square feet of Class A product under construction. Over two thirds of buildings currently underway are speculative projects. Nine properties totaling 2 million square feet reached completion this quarter. Canal Crossing 1 & 2 were both finalized and are now fully leased. Both phases of CT Realty’s Rickenbacker Logistics Park are now complete and fully occupied by Geodis and TJX Companies. With 63 projects comprising of over 28 million square feet either under construction or in the development pipeline, Central Ohio can expect more large completions throughout 2021.
SALES ACTIVITY >>
This quarter, 37 industrial properties totaling 2.5 million square feet sold in Central Ohio for a total sales volume of $192 million. The average price per square foot reached $99, which is $35 higher than the average of last quarter. Miramar Acquisitions purchased 510 Sunbury Road for $60 million, or $200 per square foot, making it the largest sale of the year so far. RMR bought 7303 Rickenbacker Pkwy. for $31.5 million and 4400 S. Hamilton Road sold to W.P. Carey for $27 million. Exeter Property Group purchased 111 Enterprise Drive for $19.5 million and 4630 Journal St. was sold to Knight Transportation in an owner/user sale for $5.7 million, or $150 per square foot.