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 second quarter with 132,478 square feet of positive absorption across medical, retail, office, and industrial sectors. This drove the overall vacancy rate down to 11.44 percent from the first quarter's 12.08%, aligning with the increased demand and leasing activity observed in Dublin and surrounding submarkets during the second quarter of 2024. The retail sector saw 1,000 square feet of negative absorption in the second quarter. However, the industrial sector recorded positive absorption of 89,482 square feet, which aligns with the trends of the Columbus market, where we are seeing an increase in industrial activity. Additionally, the office sector recorded 43,996 square feet of positive absorption in the first quarter, primarily due to the 17,100 square feet leased by Central Insurance, which moved in this quarter. Medical office space had no absorption this quarter. Dublin continues to be a leader in the Columbus market in leasing activity. One of the trends that supports this is tenant migration. Tracking tenants' movement within the Greater Columbus Region shows Dublin is consistently in the top three submarkets for activity. In the second quarter of 2024, Dublin recorded the most new leases signed and the most renewals and expansions, surpassing neighboring submarkets such as Polaris, Westerville, and Worthington. 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 contribute to its sustained success in the commercial real estate sector.
Tenants in the Market
Colliers | Columbus reports that 21 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, 10 tenants are currently looking in the North submarket, which includes Dublin, Worthington, and Delaware, with seven 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 in its retail, office, and industrial sectors. In the second quarter, the retail market experienced negative absorption and a slight increase in vacancy rates to 3.67%, indicating challenges in finding high-quality space, with limited availability and higher costs impacting retailers. Leasing activity remains steady, with notable leases such as Volunteers of America and Buckle, yet macroeconomic headwinds, including higher prices and the specter of recession, influence consumer spending. Along with retail, the office market experienced negative absorption, leading to a rise in the vacancy rate to 18.84%. Urban submarkets were the primary contributors to the negative absorption, as the CBD accounted for 172,689 square feet of negative absorption, followed by the Arlington/Grandview submarket at 18,120 square feet. Much of the negative absorption can be attributed to tenant downsizing and economic uncertainty. However, the industrial sector returned to positive absorption, driven by significant build-to-suits coming online and fully occupied, such as DHL and ODW. The 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 careful outlook awaiting economic stability.
Check out the full Q2 2024 Dublin Trends report here!
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