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HOW INTEL HAS AFFECTED THE COLUMBUS CRE MARKET AND HOW IT WILL IN THE FUTURE

Written by: Gracie Criger


Gracie is a student at The University of Cincinnati studying Real Estate. She is a former research intern with Colliers | Columbus. Keep reading for an overview on Intel’s impact on Columbus.

First announced in January 2022, as many Columbus residents know, Intel is building a $20 billion project located in New Albany, just 15 miles to downtown Columbus. These semiconductor fabs are to be completed by 2025 employing 10,000 + jobs. As residents have already started to see the immense effects, Colliers | Columbus brokers wanted to share their take on the future impacts it will have on CRE.


Brett Cisler - Office


“How will Intel coming to Columbus affect the office market?”

“The Intel project is expected to be a $20 billion project and bring thousands of jobs along with it. Other Fortune 500 companies are investing millions in the region as well. These companies have large employee bases with high salaries that come with them to the city. More people, means more jobs, which equals higher demand for office space, regardless of market conditions.”


“How has Intel coming already affected the Columbus office market?”

“Columbus is already feeling the momentum that Intel created. The city has immediately felt the increase in suppliers needed to build the Intel site, as well as other companies that are created to work alongside the new project. Many companies have seen the energy and potential in Columbus ahead of time and are proactively moving their business into the area to profit off the growth.”


“What are tenants interested in/FAQs when you have showings in New Albany?”

“Tenants in every market are interested in amenities that Class A buildings provide. These amenities include common conference rooms, lunch / café options and fitness centers. Tenants place importance on free / accessible parking as well as quick and easy access to a nearby interstate. Lastly, tenants want to work in an office space that has lots of natural light, building amenities and one that supports employee engagement.”



Drew Ponton- Retail


“How will Intel coming to Columbus affect the retail market?”

“Intel’s development will drive large workforce and additional companies with large workforces to continue to make New Albany and Central Ohio part of their future. Along with that is the natural need for retail services, whether it be a cup of coffee and donut on the way to work, or full-service restaurants and fast food, for co-workers to gather for lunch and after work. And with that large workforce, the additional housing will drive retail development t to service the growing population.”


“How has Intel coming already affected the Columbus retail market?”

“We have already seen increased national interest in the central Ohio market. It’s a constant part of daily conversations with owners, developers’ retailers, and brokers as they are hearing about the intel development in the news. We have already seen an increase in land values and will continue to see them increase along with rents, which have also been going in the same direction. There have already been new brands and concepts exploring opportunities in Central Ohio, and many of these are a direct result of Intel’s announcement.”


“What are tenants interested in/FAQs when you have showings in New Albany lately?”

“Where is the development happening? Which exits? Where are the workers going to be driving from? How many people will work at the development? What’s the deal with all the white fences?”



Ben Johnson and Zach Rines- Industrial


“How will Intel coming to Columbus affect the industrial market?”

The full effect will have not been felt for a while, but some suppliers are already here. As Zach Rines explains, “A project in this immense has not been in this region, or the state of Ohio, ever. This helps from an investment standpoint, and a brings a good tenant pool.” Different kinds of groups are interested in entering the market than before. Columbus stands out in Ohio and Intel has helped the Columbus publicity. Industrial broker, Ben Johnson explains, “So far we have seen a lot of land speculation in New Albany, somewhat as a result of Intel and there is a lack of available land in New Albany at this point.” Land investment in the region has skyrocketed. Certain construction materials like cocreate “has nearly doubled in price since 2020.” A few vendors that will work for Intel have already come to the market but not all, as their contracts are not all ready. “Land speculation, construction materials, construction companies, as well as labor are coming now.” As Ben and Zach’s Client Coordinator, Kylee Reyes, expands, “There is just a lot of buzz. People want to know the right time to get in and where to get in.”


“How has Intel coming already affected the Columbus industrial market?”

Zach says, “Land pricing has gone up significantly, land listings and developers are having different conversations about the distance and how much the impact of Intel will touch their land.” There will be more built to suits. A lot of the currently supplies already here are not quite allowed to talk about their relationship with Intel, “but if you look at Chandler, Arizona or Hillsboro, Oregon, you can tell and suspect that the suppliers are for them, especially if they are directly next door.” Ben says “A lot of people are looking for our input and speculation and wanting to know what opportunities will come. Even though the EV battery plants are starting to be more common in the U.S., this project is more unique.”

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