Q2 INDUSTRIAL AND OFFICE 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.
As the COVID-19 pandemic continues to fuel demand for prime warehouse space, the Columbus industrial market posted 2.8 million square feet of net absorption in the second quarter. The region has seen absorption greater than 2 million square feet consecutively in the past six quarters, which has driven vacancy down to 3.68 percent - the lowest it has ever been. Construction also remains steady, as over 10 million square feet of product is currently underway and 2 million square feet of space completed this quarter. Consistent demand in industrial space will further impact the Columbus market through the rest of 2021.
The industrial market has seen consistent development and positive absorption in recent years. Activity has skyrocketed further since Q1 2020 due to growing demand for warehouse space from the COVID-19 pandemic.
As the world continues to feel the effects of the ongoing COVID-19 pandemic, the Columbus office market recorded negative net absorption of 48,300 square feet in the second quarter. The 1 million+ square feet of new sublease space that has been added to the market since Q2 2020 has driven the vacancy rate up to 12.12 percent. Central Ohio is showing signs of recovery, with development and leasing activity picking up significantly this year. With 1.2 million square feet of product underway and a 5.4 percent QoQ increase in leased square feet, the office sector is demonstrating its resilience and beginning to rebound.
The previously-strong office market has been hard hit by the COVID-19 pandemic, posting negative net absorption and increased vacancy in the last four quarters. However, construction completions have stayed consistent QoQ and we anticipate these prime spaces to be in high demand throughout the rest of the year.
Click here to access the full Q2 Industrial and Office Trends Reports.