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  • Writer's pictureColliers | Columbus

Q1 2024 DUBLIN SUBMARKET UPDATE

Written by: Collin Fitzgerald


Collin specializes in research capabilities, providing support for the Colliers Columbus Office, Industrial and Retail groups. He 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. Keep reading for his take on market trends in the Dublin submarket.


Absorption & Vacancy

The Dublin market concluded the first quarter with 41,911 square feet of positive absorption across medical, retail, office and industrial sectors. This drove the overall vacancy rate down to 12.04 percent from last quarter’s rate of 14.61%, aligning with the increased demand and leasing activity observed in Dublin and surrounding submarkets during the first quarter of 2024. The retail sector saw 7,688 square feet of negative absorption at the start of the year, with tenants moving out of space in the area. The industrial sector recorded 11,361 square feet of negative absorption, indicating a slowdown from the industrial boom. However, the office sector recorded 57,359 square feet of positive absorption in the first quarter, with the delivery of 6620 Mooney St, partially preleased by Central Insurance, contributing to the positive absorption. Following the retail and office sectors, medical office space also noted positive absorption, in part by 3,601 square feet leased at 5775 Perimeter Drive. Dublin continues to be a leader in leasing activity in the Columbus market. In the first quarter of 2024, Dublin recorded three new office tenants who came from other submarkets in Columbus, surpassing neighboring submarkets such as Polaris, Westerville and Worthington. Over 12 months, 43 office tenants either renewed or expanded their leases in Dublin, totaling over 318,000 square feet. Additionally, 34 office users signed new leases, totaling over 126,000 square feet. Dublin, Ohio's commercial real estate market stands out for its strategic location within the thriving Columbus metropolitan area, attracting businesses seeking accessibility and growth opportunities. Its diverse mix of industries, robust economy and supportive business environment contributes to its sustained success in the commercial real estate sector.


Tenants in the Market

Colliers | Columbus reports that 27 office tenants are exclusively seeking space in Dublin, with over half requiring 5,000 square feet or more. Dublin currently ranks among the top three most desired submarkets for tenants seeking office space. In the industrial sector, 17 tenants are currently looking in the North submarket, including Dublin, Worthington and Delaware, with 15 requiring 10,000 square feet or more. In the retail sector, nine users are exclusively looking in Dublin, while over 100 tenants are considering multiple markets, with Dublin remaining a top location.


Around the Region

The Columbus commercial real estate market reflects diverse trends across its retail, office and industrial sectors. Despite positive absorption in the retail market, the slight increase in vacancy rates to 3.6 percent indicates challenges in finding high-quality space, driven by limited availability and higher costs impacting retailers. Leasing activity remains steady, with notable signings such as CVS and Crystal Ballroom, yet macroeconomic headwinds, including higher prices and the specter of recession, influence consumer spending. In contrast, the office market experienced negative absorption leading to a rise in the vacancy rate to 17.44%. Suburban submarkets particularly saw negative absorption, with Worthington experiencing the lowest at 126,134 square feet followed by Westerville at 66,787 square feet. Most of this is attributed to tenant downsizing and economic uncertainty. However, the industrial sector faces the first negative absorption since 2019, driven by major tenant vacancies such as TJ Maxx and Pepsi/Quaker. Speculative construction slowdown and increased sublease space reflect cautious tenant behavior amid economic uncertainties. Despite challenges, preleased deliveries and notable leases suggest continued activity but with a cautious outlook awaiting economic stability.


 

Check out the full Q1 2024 Dublin Trends report here!



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