Columbus and Cleveland aren’t so different from most markets across the Midwest: These two Ohio cities are in the middle of a modest, but steady, office-market recovery.
According to the latest research from Marcus & Millichap Real Estate Investment Services, the office vacancy rate in Columbus should fall to a 10-year low in 2012. In Cleveland, office vacancy rates should fall 100 basis points this year to 20.7 percent by the end of 2012.
The news in Cleveland was less exciting, but it was still positive. Any drop in office vacancy rates, after all, represent good news. According to Marcus & Millichap’s report, Cleveland office landlords will also see a modest increase in asking rents this year to $18.47 a square foot, a jump of 0.5 percent. Effecive rents are predicted to increase 0.8 percent to $14.69 a square foot in 2012 in Cleveland.
In Columbus, office vacancy rates are expected to hit 17.7 percent by the end of 2012, a 10-year low. At the same time, office rents in Columbus are also expected to rise modestly 0.5 percent to $17.92 a square foot. Effective office rents should jump 0.7 percent to $14.28 a square foot in Columbus.