WHAT'S HAPPENING IN THE OFFICE MARKET?
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 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 are able to track where office users are coming and going throughout the city. Here are some findings from our Q4 2021 Report:
The four largest leases of the quarter were signed in the CBD
3/5 of tenants that leased their first office location did so in Dublin
Nearly 50% of Healthcare tenants signed for space in Westerville
Skyline Review – What’s Happening Downtown?
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. However, the CBD saw 10,956 square feet of positive net absorption this quarter which can primarily be attributed to Nations Lending occupying the 30,000-square-foot office property at 333 Nationwide Blvd. CBD vacancy held fairly steady, decreasing from 11.62 percent to 11.57 percent, which is lower than the overall market’s vacancy of 12.76 percent. Overall asking rates in the downtown area slightly decreased this quarter, from $19.61 FSG per square foot to $19.24 FSG per square foot. The CBD continues to lead construction activity, with 892,938 square feet currently underway downtown. This includes phase 1 of Scioto Peninsula, the Front and Fulton development, phase 2 of the CoverMyMeds headquarters, the second half of Gravity in Franklinton and the renovation of the Municipal Light Building. Tenants are continuing to stay active in the CBD, with 44 users representing 596,000 square feet currently searching for space specifically in the Central Business District. Columbus can anticipate increased activity in the new year as the office market continues to rebound and adapt to a post-COVID world.
Click here to check out our Q4 2021 Tenant Migration and Skyline Review reports!