Q1 2022 OFFICE AND INDUSTRIAL 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 market trends in the Columbus industrial and office sectors.
The Columbus industrial market started the year on a positive note, recording 3,455,972 square feet of net absorption this quarter. The ongoing COVID-19 pandemic has caused already-high demand for industrial space to skyrocket, leading to booming activity from e-commerce and logistics tenants. High leasing activity has driven vacancy down to 1.55 percent and overall asking rates up to $4.61 NNN - both records in the Central Ohio market. Construction activity also remains strong, as there are 26 projects comprising of 13.7 million square feet currently underway. Throughout 2022, Columbus can anticipate consistent demand from tenants, developers and investors as the city solidifies itself as a true U.S. industrial hub.
Despite the ongoing COVID-19 health crisis, the Columbus office market recorded positive net absorption for the first 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 vacancy rate slightly increased to 12.86 percent, as construction completions added new available space to the market. Development remains strong, with six projects comprising of 947,188 square feet underway. Throughout 2022, Columbus can anticipate more growth as the office market rebounds and adapts to a post-pandemic world.
Click here to access the full Q1 Industrial and Office Trends Reports.