Columbus, OH, July 21, 2016 – Construction activity is expected to generate hundreds of new job in Columbus, especially for the logistics and manufacturing industries, according to CBRE’s latest industrial MarketView report.
Nearly 4 million square feet of new industrial product was under construction at the close of Q2 2016, 82 percent of which was already pre-committed to logistics and manufacturing businesses either signing new leases or expanding their current operations.
“The expansions and new leases announced during the last quarter show that logistics and manufacturing operations continue to seek a heavier presence in the region,” said CBRE’s Michael Mullady, executive vice president said. “With a substantial amount of build-to-suit activity, in addition to over 1 million square feet of speculative product expected to deliver later this year, we expect lease rate to continue to remain strong along with job creation.”
Other highlights from the report include:
- Positive overall net absorption occurred in consecutive quarters for the first time since 2014, total 528,758 square feet. Positive absorption is expected to continue with 2.8 million square feet of build-to-suit space projected to be delivered this year.
- Direct average asking lease rates increased to $3.42 per square foot, up slightly from Q1 2015. Lease rates are expected to continue increasing as new product is added to the market later this year.
- Overall vacancy remained steady at 6.1 percent, up 90 basis points year-over-year.
CBRE’s Columbus office provides a complete spectrum of commercial real estate services including Asset Services, Brokerage Services, Corporate Services, Debt and Equity Financing, Facilities Management, Industrial Services, Investment Sales, Office Services, Project Management, Research and Valuation and Advisory Services.
To speak to a CBRE professional about this report and other market trends, please contact Joe Ludwig at +1 513 369 1305 or joe.ludwig@cbre.com.
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 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 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.