WHAT'S HAPPENING IN THE COLUMBUS OFFICE MARKET? Q3 2023
Written by: Collin Fitzgerald and Brooke Ferman, Research Team
As the Research Team, Collin, Research Manager, and Brooke, Research Analyst, specialize in research capabilities, providing support for the Colliers Columbus Office, Industrial, and Retail groups. They are 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. They also assist the marketing and research director on special projects and corporate initiatives. Keep reading for Collin and Brooke's take on what’s happening in the Columbus office market.
Tenant Migration - Where are Tenants Moving?
Tenants are constantly relocating their office space to better fit their needs. Using a points system based on signed square feet, we can track where office users are coming and going throughout the Columbus office market. Check out our tenant migration heat map and click around to find out more information on the movement within each submarket.
The largest lease of the quarter was a 30,000-square-foot sublease signed in the Polaris submarket by an Engineering/Manufacturing firm.
40% of tenants that signed new leases in the market were in the Business Services or Real Estate/Construction industries.
High-Rise Report - What's Happening Downtown?
The Columbus office market continues to adjust to the evolving workplace and economic environment. In the third quarter, the CBD produced a negative absorption of 108,249 square feet, along with a vacancy rate increase to 19.05 percent. Asking rates continue to remain steady at $22.07/sf. Although vacancy in the CBD increased 63 basis points to 15.84 percent, it remains lower than the overall market’s vacancy due to the CBD continuing to be one of the most sought-after submarkets in Columbus. The CBD also continues to lead construction activity, with 298,937 square feet currently underway. This includes the first phase of Scioto Peninsula, the Front and Fulton development, the second half of the Gravity project in Franklinton, and the renovation of the Municipal Light Building. Tenants are continuing to stay active in the CBD, with 29 users representing 309,500 square feet currently searching for space in the CBD. Columbus can anticipate increased activity this year as users become more comfortable entering the market and making decisions regarding their office space.
Sublease Activity - Analysis of Office Sublease Space
Most of the available sublease space is in the Dublin, Easton, and New Albany submarkets. 5100 Rings Road in Dublin was vacated by Cardinal Health, resulting in 406,000 square feet available and vacant for sublease. Additionally, Upstart vacated 240,000 square feet at 3075 Loyalty Circle in Easton last quarter. 5400 New Albany Road and 8111 Smith’s Mill Road are vacant and available for sublease in New Albany. These submarkets combined encompass 1.3 million square feet of available sublease inventory.
Since the COVID-19 pandemic, sublease space has increased significantly. In the Columbus office market, there are currently 71 spaces available for sublease, totaling over 2.1 million square feet.
Check out our Q3 2023 Tenant Migration Report, High-Rise Report and Sublease Activity Report here!