BULK PRODUCT UPDATE
Written by: Michael R. Linder, SIOR and Shane E. Woloshan, SIOR
Michael R. Linder, SIOR and Shane E. Woloshan, SIOR are members of the Columbus Industrial Team at Colliers along with Joel Yakovac, SIOR, Jonathan Schuen, SIOR, Kyle Ghiloni, and Molly Crosby. Mike and Shane work with owners and tenants in the leasing, sale, and development of industrial properties. Throughout Mike’s twenty year career and Shane’s fifteen year career in commercial real estate, they have established themselves as two of the most prominent names of industrial real estate in Columbus, Ohio. Keep reading to get Mike and Shane’s take on the current bulk market in Central Ohio.
Have you noticed the amount of available bulk space decreasing recently? Do you think we’ll continue to see this?
Mike: Absolutely. We’re going to continue to run out of space because our development, although extremely high, just cannot keep up with demand. What’s going to happen is we’re going to start seeing more large deals getting signed in markets like Dayton and Cincinnati because Columbus doesn’t have the available product.
Shane: The amount of completed bulk space available has declined dramatically over the past 6 months. Spec product was complete and available at the beginning of the year with the majority absorbed over the first half of 2021. Most bulk space on the market now is under construction with 2022 completion dates. We will see more completed available in 2022.
What can we expect in the next couple years as far as bulk construction?
Mike: Construction will continue to be strong over the next couple of years. Right now, people can’t build product fast enough. But real estate costs and inflation are definitely something to keep an eye on.
Shane: 5 million square feet of annual construction was normal 5 years ago. Annual construction is now above 10 million square feet the past two years. This number will continue to increase over the next couple years as developers take larger speculative land positions.
Are there any leasing trends relating to bulk space that we should be keeping an eye on?
Mike: I think we will continue to see activity in the Etna and West Jefferson areas, as they have great access to I-70, as well as activity around Rickenbacker due to their access to labor.
Shane: Countless new developers along with seasoned Columbus developers navigate a competitive market for speculative land positions. Increased constructions costs and material delays will also apply pressure. A lot of people are threatening construction – who will follow through?
For more information on the Columbus bulk market, check out our latest report here!