A slowdown in construction activity? That’s not unusual for industrial markets across the country. And it’s what the Columbus, Ohio, market saw at the close of last year, too, according to the latest research from Lee & Associates.
But despite this slowdown, the fundamentals of Columbus’ industrial market remain strong, according to Lee & Associates’ fourth quarter 2024 Columbus industrial market report.
Lee & Associates reported that industrial construction activity declined by 76% in the fourth quarter of last year in the Columbus market when compared to the previous quarter, with 32% of the current activity being speculative.
The only speculative project to start construction in the fourth quarter was Opus’ 250,000-square-foot development in the 33 Innovation Park in Marysville in Union County, Ohio.
Build-to-suit activity was higher. Lee & Associates reported that build-to-suit industrial projects were completed for occupier DSV in Licking County in the fourth quarter of last year, while Prologis delivered specific projects for McKesson and Cardinal Health in Pickaway County. Neyer Properties delivered its Interstate Batteries project, too.
CT Realty delivered a speculative industrial project near Rickenbacker International Airport, while Pioneer Development delivered one in the Southwest market. Tenby Partners delivered two speculative industrial buildings at Edwards Farms in the Northwest submarket.
Industrial sales activity was slow in the fourth quarter last year in the Columbus market, too. That doesn’t mean that there were no sales. Lee & Associates pointed to EQT Exeter taking back control of a large portfolio from Mapletree Investments and acquiring Xebec’s four-building project in the Southeast submarket.
ARES purchased a four-building portfolio in the Southwest from developer Becknell Industrial, while Florida-based MSG Acquisitions entered the market with a purchase in New Albany, Ohio.
There were some significant industrial leasing deals in the fourth quarter, too, Lee & Associates said. In the Southeast submarket, landlords Olympus Ventures, Crane Worldwide and LXP Ind Trust each leased projects exceeding 300,000 square feet.
In Licking County, developer Al Neyer leased two of its speculative spaces. And in Delaware County, Bridge Investment Group achieved 100% occupancy in its two speculative projects immediately south of the Delaware County Airport.
Overall, Lee & Associates reported that the Columbus industrial market saw 2.12 million square feet of net absorption in the fourth quarter of last year. That was up from 1.43 million square feet in the third quarter.
The market’s vacancy rate stood at 7% as of the end of 2024. That was unchanged from the same rate in the third quarter of 2024.
