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2021 Q3 Industrial Trends Columbus Colliers

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Research & Forecast Report
COLUMBUS | INDUSTRIAL
Q3 2021


The Columbus industrial market continued a strong year with a record third quarter, posting 4 million square feet of positive net absorption. The ongoing pandemic has caused the e-commerce industry to grow rapidly over the past 18 months, indicated by an influx of demand for prime warehouse space. Central Ohio has experienced absorption greater than 2 million square feet consecutively in the past seven months, and the current vacancy rate of 2.78 percent is the lowest it has ever been. Construction continues to rise, as there is nearly 14 million square feet of product currently underway. Columbus can anticipate high activity throughout the rest of the year as COVID-19 fuels growth in e-commerce and logistics.


Vacancy
Another quarter of positive net absorption drove the vacancy rate down from 3.68 percent to 2.78 percent. The largest vacancy of the quarter occurred in the Southeast submarket, as a tenant vacated 130,000 square feet at 2200 Fairwood Ave. However, the Southeast submarket saw the most significant overall decrease in vacancy to 1.81 percent, as multiple users leased 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 5.1 million square feet – a strong indication that tenants are continuing to stay active in the market.

Construction
Development continues to grow in Columbus, as 13 projects totaling 5.9 million square feet broke ground this quarter. This brings total product under construction to 13.8 million square feet - the ninth consecutive quarter with over 5 million square feet underway. The Licking and Southeast submarkets lead activity, each with over 4.8 million square feet of Class A industrial product under construction. Over two thirds of buildings currently underway are speculative projects. Seven properties totaling 2.3 million square feet reached completion this quarter. VanTrust’s Rickenbacker Exchange I was finalized and fully pre-leased. Duke’s West Jefferson build-to-suit is now complete and fully occupied. With over 40 projects comprising of nearly 16 million square feet either under construction or in the development pipeline, Central Ohio can expect more large completions in the fourth quarter.

Sales
This quarter, 34 industrial properties totaling 4.2 million square feet sold in Central Ohio for a total sales volume of $199 million. This total is $6 million higher than the sales volume last quarter. The average price per square foot reached $74. Vault Realty purchased 2893 W. Fair Ave. for $42.9 million, making it the largest sale of the quarter. Stockbridge Capital Group bought a portfolio of three Columbus properties, including 3800-3880 Groveport Road which sold for $25.6 million. The warehouse at 1860 Walcutt Road was sold to Lexington Realty Trust for $29.15 million, or $99 per square foot.


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2021 Q3 Industrial Trends Columbus Colliers

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Michael Linder

Senior Executive Vice President | Principal

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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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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

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