Written by: Hannah Williams, CPRC
Hannah specializes in research capabilities, providing support for the Colliers Columbus Office, Industrial, Retail, Manufactured Housing and Multifamily Groups. She 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. She also assists the marketing and research director on special projects and corporate initiatives. Keep reading to get Hannah’s take on current development in the Columbus office market.
With uncertainty regarding the future of office space, some have theorized that construction for this type of space will falter. In the Columbus office market, we are noticing quite the opposite. Development that was booming pre-COVID has picked right back up in the past six months, as the city has started reopening and mandates have been lifted. There is nearly 1.2 million square feet of Class A office space currently under construction, and over half of that space broke ground after the pandemic started. Notable projects include Phase I of the Scioto Peninsula, the second building in the new CoverMyMeds headquarters and the highly-anticipated Arlington Gateway mixed-use development. Developments like the second phase of Gravity in Franklinton, Chipotle’s new offices in the Arena District and the first phase of Grandview Crossing are all expected to complete this summer, adding more first-class office availability to the market.
This space is not only moving forward in the construction process, but is also getting preleased quickly. Burgess & Niple signed for 45,000 square feet at Scioto Peninsula and White Oak Partners leased 26,838 square feet at the new Hamilton Quarter office building in New Albany. Arlington Gateway has already announced three anchor tenants to their project – Northwest Bank, First Merchants Bank and Assured Partners – that will collectively take 73,000 square feet there. Additionally, a newly completed project recently was recently purchased in an investment sale – the largest that Central Ohio has ever seen. Qatar First Bank bought the new CoverMyMeds headquarters building for $120 million, or $545 per square foot. This demonstrates continued demand from tenants and investors in prime office space. We predict more preleasing, construction starts and sale activity in coming quarters as tenants and investors continue to become more active in the market.
For more information on all of the exciting projects currently underway, check out our interactive Columbus Office Development story map!