Colliers | Columbus
SOUTHEAST: SUBMARKET 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 what’s happening in the Southeast submarket.
The Southeast industrial market continued a strong year posting 1.3 million square feet of net absorption in the third quarter. This marks the highest quarterly absorption in the Southeast since Q3 2019. Due to the ongoing COVID-19 pandemic, the e-commerce industry and, thus demand for industrial space, has skyrocketed. Despite positive absorption, vacancy in the Southeast increased to 6.35 percent due to new available speculative development that was added to the market. A total of six projects reached completion in the third quarter –The Hub 6, Centerpoint III, the Startech BTS, 6770 Shook Road and Rickenbacker West 2 and 3. Additionally, there is 2.3 million square feet under construction in the Southeast projected to complete in the next 12 months. Overall asking rates held steady at $3.51 NNN per square foot but are expected to increase as this new first-class warehouse space hits the market.
Tenants in the Market
Colliers | Columbus reports that 8 industrial tenants accounting for 995,000 square feet are looking for space exclusively in the Southeast submarket – six of which require more than 75,000 square feet. Additionally, 39 tenants accounting for 4.7 million square feet are looking for space in multiple markets including the Southwest submarket. The retail sector has 5 tenants currently looking in the Southeast area of Columbus – specifically in Pickerington and Circleville.