Any signs of a slowdown in the Columbus industrial market? Not yet, at least according to a recent report on this key Ohio market.
Newmark in its most recent industrial report said that the Columbus industrial market recorded 1.7 million square feet of positive absorption in the second quarter of 2022. All that activity caused the market’s vacancy rate to fall by 11 basis points from the previous quarter to 2.31%.
That is the Columbus industrial market’s lowest vacancy rate in five years.
In little surprise, the majority of absorption came in the warehouse and distribution end of the market. Newmark reported that this space saw nearly 1.5 million square feet of positive absorption during the second quarter.
The asking rental rate for industrial space in the Columbus market hit $4.83 a square foot in the second quarter, an increase of 0.42 a square foot from the first quarter of the year. That $4.83 price ranked as the highest in the last five years in Columbus.
Despite the positive absorption numbers, it wasn’t big deals that fueled the Columbus industrial market last quarter. Instead, smaller deals accounted for most of the activity. Newmark pointed to Total Distribution taking 253,700 square feet at 4000 Lockbourne Industrial Parkway in the Southeast submarket and Eagle Warehouse occupying 179,000 square feet of warehouse space at 401 Gantz Road in the Southwest submarket as two examples.