Written by: Collin Fitzgerald
Collin specializes in research capabilities, providing support for the Colliers Columbus Office, Industrial, and Retail groups. He is responsible for executing data reports, maintaining a commercial property database, reporting quarterly trends, performing data analysis, and utilizing statistical information to predict future behavior in the market. Continue reading for insights into the industrial lease sizes signed in 2019 compared to those in 2024.
*Leases signed in 2019 and 2024 (so far)
The Columbus office leasing market has shown signs of recovery since the pandemic, but activity and average lease sizes have yet to fully return to 2019 levels. Pre-pandemic, the office market was robust, with a steady demand for larger spaces exceeding 10,000 square feet. However, the pandemic introduced shifts in work patterns, including the rise of remote and hybrid models, which reshaped the market dynamics. In 2024, Columbus recorded a total vacancy rate of 19.29%, significantly above the 20-year average of 15.2%. While vacancy remains high, leasing activity has stabilized compared to the volatile pandemic years. Notably, larger leases have become less common; demand is now driven by smaller and mid-sized tenants. For instance, in the third quarter of 2024, sublease activity declined slightly as some spaces were absorbed, but direct vacancy rates increased, reflecting a persistent oversupply in the market. Recovery efforts are evident in some sectors, such as technology and professional services, which have shown resilience and moderate demand for office spaces. Major deals, such as Wells Fargo’s 66,000-square-foot lease for a technology hub, indicate selective growth in larger leases. However, these are exceptions, with overall activity still trailing behind pre-pandemic highs.
Looking ahead, Columbus is expected to see additional office construction in 2024, potentially adding 254,000 square feet to the inventory. The challenge remains balancing this new supply with shifting tenant demands, particularly as flexible work continues to redefine space utilization.
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