YEAR-END OHIO OFFICE CAPITAL MARKETS UPDATE
Written by: Dan Dunsmoor, SIOR
As Brokerage Executive Vice President, Dan Dunsmoor has been involved with over 750 commercial real estate transactions valued in excess of $800,000,000 and accounting for over 5,000,000 square feet. Dan is recognized as a market leader in the Columbus, Ohio commercial real estate market, specializing in the leasing and sales of Class A & B office space. Brady focuses on helping his team craft tailored strategies for each client based on their underlying financial objectives. He is closely involved with the process of executing the team’s leasing and sales processes and maintains up to date financial models to help the team constantly advise clients how to maximize value. Keep reading to get Dan and Brady’s take on what’s happening in the Ohio office investment market.
Investment Market and Sales Activity
Throughout Ohio, total office sales volume dropped 1.7% from $923 million in 2020 to $907 million in 2021. Now at the beginning of 2022, it’s clear we are entering an office market recovery fueled by the removal of work-from-home orders and the general realization that it is time to get back to the office. At the conclusion of 2022, we expect the total sales to outpace the volume experienced prior to the pandemic in 2019. The average price per square foot has increased from $107 at the middle of 2021 to $113 at year-end 2021. There were 134 total sale transactions in 2021. We expect an increase in sales over the next 6 months due to the recent inflow of capital to the market coinciding with increased investor sentiment.
Check out the report here for more information on the Cincinnati, Cleveland and Columbus office investment markets.