EAST: SUBMARKET UPDATE
Written by: Hannah Williams, CPRC
Hannah specializes in research capabilities, providing support for the Colliers Columbus Office, Industrial, Retail, 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 what’s happening in the East submarket.
The East industrial market had a strong fourth quarter, posting 424,622 square feet of net absorption. This marks the highest quarterly absorption ever recorded in the East. Due to the ongoing COVID-19 pandemic, the e-commerce industry and, thus demand for industrial space, has skyrocketed. Despite positive absorption, vacancy in the East increased to 7.67 percent due to new available speculative development that was added to the market. Two projects reached completion in the fourth quarter – 510 Sunbury Rd and 8200 Innovation Way. Additionally, there is one project totaling 437,154 square feet under construction – Core5’s I-70 Logistics Center East. Overall asking rates in the East submarket increased to $4.10 NNN per square foot due to this new first-class warehouse space hitting the market.
Tenants in the Market
Colliers | Columbus reports that 20 industrial tenants accounting for over 400,000 square feet are looking for space exclusively in the East submarket – 15 of which require more than 10,000 square feet. Additionally, 46 tenants accounting for over 3.3 million square feet are looking for space in multiple markets including the East submarket. The office sector has 7 tenants currently looking in the East submarket accounting for nearly 170,000 square feet.