Kyle Ghiloni

As the COVID-19 pandemic continues to fuel demand for prime warehouse space, the Columbus industrial market posted 2.8 million square feet of net absorption in the second quarter. The region has seen absorption greater than 2 million square feet consecutively in the past six quarters, which has driven vacancy down to 3.68 percent - the lowest it has ever been. Construction also remains steady, as over 10 million square feet of product is currently underway and 2 million square feet of space completed this quarter. Consistent demand in industrial space will further impact the Columbus market through the rest of 2021.

The Columbus industrial market started the year strong, recording 5,072,626 square feet of net absorption. The ongoing COVID-19 health crisis has caused already-high demand for warehouse space to skyrocket, leading to booming activity in the industrial sector. This growth has yielded absorption greater than 1 million square feet in 14 of the past 15 quarters in Central Ohio and driven vacancy to 4.02 percent - the lowest it’s been in three years. With consistent demand and expected construction completions, Columbus can anticipate more activity throughout 2021 as the pandemic fuels growth in industrial space.

The Columbus industrial market finished 2020 with a strong fourth quarter, posting 2,184,850 square feet of net absorption. This brings year-to-date net absorption to over 10.6 million square feet - the highest annual absorption the Columbus market has ever recorded. The already thriving industrial sector has skyrocketed this year, as the e-commerce industry has grown exponentially due to the ongoing COVID-19 pandemic. Sustained demand in prime warehouse space has yielded absorption greater than 1 million square feet in 13 of the past 14 quarters in Central Ohio. This activity drove vacancy down in the fourth quarter, from 4.9 percent to 4.74 percent. Overall asking rates held steady at $3.89 per square foot, but new speculative availability increased rates for warehouse/distribution properties to $3.74 per square foot. In the past quarter, nearly 2 million square feet of product broke ground and the number of users looking for industrial space increased to 130 tenants, demonstrating the resiliency of the industrial market. Central Ohio can expect continued activity in the new year as COVID-19 fuels demand in the industrial sector.