Q4 2021 OFFICE AND INDUSTRIAL UPDATE
Updated: Jan 17
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 finished 2021 with a strong fourth quarter, posting 3,455,921 square feet of net absorption. This brings year-to-date net absorption up to 15,367,522 square feet and vacancy down to 2.16 percent - both records for Central Ohio. The ongoing pandemic has caused the e-commerce industry to grow rapidly over the past 18 months, indicated by an influx of demand for prime warehouse and distribution space. Construction continues to rise, as there is over 15 million square feet of product currently underway and 45 million square feet in the pipeline. Columbus can expect continued activity throughout the new year as COVID-19 fuels demand in the industrial sector.
As the world continues to feel the effects of the ongoing COVID-19 pandemic, the Columbus office market recorded negative net absorption of 55,939 square feet in the fourth quarter. The negative year-to-date absorption of 717,942 square feet has driven vacancy from 11.8 percent in Q1 2021 to 12.76 percent this quarter. However, Central Ohio is showing signs of recovery, with new development and tenant demand picking up significantly throughout the year. With 1.3 million square feet of product underway and over 140 users searching for office space, Columbus can anticipate increased activity in the new year.
Click here to access the full Q4 Industrial and Office Trends Reports.