Columbus, Ohio – April 13, 2015 – CBRE reported that the Columbus office market posted another strong performance in Q1 2015 marked by positive net absorption in both the Downtown and Suburban markets. According to the report, the metro area office market net absorption was positive 712,826 sq. ft. over the last four quarters. In addition, logistics growth has been strong in the Columbus industrial sector, reflected in overall leasing activity and numerous distribution projects completed.
“Strong performance in the Downtown office market is attributed to the success of new building projects as steady leasing activity in the Arena District,” said Michael Copella, CBRE Managing Director. “Modern bulk warehouse product drove the industrial market in Q1 2015 and contributed approximately 1.1 million sq. ft. of positive net absorption to the market,” added Mr. Copella.
Q1 Columbus Office Market Highlights:
New office lease deals signed this quarter by Nisource (43,000 sq. ft., New Albany) and Gallant Ventures LLC (16,818 sq. ft., Easton)
Significant office lease renewals signed by Healthspot (20,075 sq. ft.,Dublin) and Total Quality Logistics (16,815 sq. ft., Downtown)
Other major office deals in the market this quarter included the investment sale of the Mill Run Business Park (99,553 sq. ft., Hilliard) The Columbus metropolitan area has maintained a high level of employment.
Unemployment was 4.5% as of February 2015, 1.1% below Ohio’s unemployment rate and 1.3% below the U.S. unemployment rate
Columbus 2020 recently reported the logistics industry added 1,700 jobs in Central Ohio in Q4 2014. With additional logistics projects in the construction pipeline that growth is expected to continue
Q1 Columbus Industrial Market Highlights:
Overall industrial vacancy in Q1 2015 was 5.1%, down 10 bps year-over-year, and down 50 bps quarter-over-quarter
Modern warehouse vacancy was 5.8% in Q1 2015, a decrease of 70 bps quarter-over-quarter and an increase of 370 bps a year-over-year
1.1 million sq. ft. of Q1 2015 net absorption for the industrial market was attributed to modern warehouse, approximately 60% of total Q1 2015 net absorption
Construction completions slowed this quarter, but multiple build-to-suit and speculative projects are expected to complete later in 2015
In Q1 2015, a 743,600 sq. ft. modern distribution center project was completed by Duke Realty for Bon-Ton in West Jefferson
Q1 Columbus Retail Market Highlights:
The Columbus Retail market continued moving in the right direction during Q1 2015, with improved vacancy and positive net absorption
Overall vacancy declined 40 basis points (bps) quarter-over-quarter, from 8.3% in Q4 2014 to 7.9% in Q1 2015, and 80 bps year-over-year
Q1 2015 absorption was positive at 165,642 sq. ft., and is currently at 615,588 sq. ft. over the last four quarters
About CBRE Group, Inc. CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 52,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 370 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.