OFFICE SKYLINE AND TENANT MIGRATION 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 Columbus office market.
Tenant Migration – Where are Tenants Moving?
Tenants are constantly relocating their office space to better fit their needs. Using a points system based on signed square feet, we are able to track where office users are coming and going throughout the city. Here are some findings from our Q1 2022 Report:
The two largest leases of the quarter were signed by Technology tenants
3/4 of tenants that left space in the CBD leased space elsewhere in the CBD
50% of tenants that expanded in the market were in the Healthcare industry
Skyline Review – What’s Happening Downtown?
Despite the ongoing COVID-19 health crisis, the Columbus office market recorded positive net absorption for the firth quarter since Q1 2020. This 424,356 square feet of net absorption is a testament to the increased demand and leasing activity that Central Ohio has seen in recent months. The CBD submarket also had a strong quarter, posting positive net absorption of 166,169 square feet. This is mainly due to the second phase of CoverMyMeds’ headquarters completing and the company occupying 200,000 square feet of additional space. Vacancy in the CBD held fairly steady, increasing slightly to 11.62 percent, which is lower than the overall market’s vacancy of 12.86 percent. Overall asking rates in the downtown area increased this quarter, from $19.24 FSG per square foot to $19.35 FSG per square foot. The CBD also continues to lead construction activity, with 692,938 square feet currently underway downtown. This includes phase 1 of Scioto Peninsula, the Front and Fulton development, the second half of the Gravity project in Franklinton and the renovation of the Municipal Light Building. Tenants are continuing to stay active in the CBD, with 36 users representing 594,000 square feet currently searching for space specifically in the Central Business District. Columbus can anticipate increased activity in the new year as the office market continues to rebound and adapt to a post-COVID world.
Click here to check out our Q1 2022 Tenant Migration and Skyline Review reports!