THE WEEKLY REVIEW | January 13, 2023
Keeping up with CRE trends is as easy as 1-2-3 with our weekly piece! The Weekly Review is a new blog series that will be released every Friday. The market is constantly growing and adapting to new ventures and ideas, and our goal is to provide up-to-date information into what is happening in both the Columbus and U.S. markets, as well as the commercial real estate industry as a whole. As stories evolve, the Weekly Review will continue to follow along and update our clients and community.
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“Spaces of note include the 406,000-square-foot building at 5100 Rings Road in Dublin that Cardinal Health put up for sublease because more of its employees are working from home; the 235,000 square feet Upstart itself subleased from Bread Financial in 2021 at 3075 Loyalty Circle but may no longer need following a workplace strategy change; and nearly 150,000 square feet up for sublease at the former State Farm Operations Center in New Albany.”
“’Most of the spaces available are in big chunks,’ said Grant Hartman, a vice president at Colliers. Hartman said in many major cities, such as San Fransisco, sublease space makes up about 8% of the open office market. But according to Colliers data, sublease space in Columbus makes up just 1.7% of the available office space.”
“Colliers International Group Inc. (Nasdaq: CIGI) found occupiers are increasingly putting industrial space on the market for sublease, a not-uncommon phenomenon in the office sector now, but a recent shift for warehouse. Manufacturing companies have given back the most space in the past 12 months, accounting for 27.4% of newly available sublease space, Colliers found. General retail and wholesale users accounted for 20.3% of new sublease listings in the industrial market, while e-commerce tenants made up 17.7% of sublease inventory listed within the past year.
“Amanda Ortiz, director of national industrial research at Colliers who authored the report, wasn't available by deadline for a phone interview but said in an email oversupply is a concern for the industrial market in 2023.”
“The luxury fashion market has been displaying resilience in the face of a challenging retail climate, Arnold writes, largely because high-income shoppers are still fairly insulated from inflationary concerns.
“Luxury shopping malls did not exceed their 2021 visit levels in the first half of 2022, but they did outperform their non-luxury counterparts, rising 0.7% year-over-year (YoY) in September 2022 compared to regular indoor malls.”