WEST: 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 West submarket.
The West industrial submarket had a lackluster fourth quarter but ended 2020 with 714,386 square feet of year-to-date net absorption. The most significant activity in the submarket last year occurred when Rogue Fitness leased 2652 Fisher Rd, Lexington Logistics occupied space at 4545 Fisher Rd and Stanley Electric took space at 5400 Renner Rd. This absorption caused vacancy to decrease from 5.55 percent in Q1 2020 to 3.76 percent in Q4 2020. In coming quarters, the West can expect two construction completions totaling 185,000 square feet – the Fyda Freightliner and Granite Inliner build-to-suit warehouses. Asking rates in the West submarket remain some of the most competitive in Central Ohio, reaching $4.25 per square foot at the end of 2020. Rates for warehouse/distribution properties have also seen growth, up from $3.07 to $3.55 over the course of the year. With the ongoing pandemic continuing to fuel growth in the industrial sector, the West submarket can anticipate more leasing activity moving forward.
Tenants in the Market
Colliers | Columbus reports that 20 industrial tenants accounting for over 1.6 million square feet are looking for space exclusively in the West submarket. Additionally, 46 tenants accounting for over 3 million square feet are looking for space in multiple markets including the West. The office sector has 17 tenants currently looking West, which includes the Hilliard and Dublin submarkets. On the retail side, there are 15 tenants currently looking West, which includes the Hilliard, Dublin and Lincoln Village submarkets.