Finding an apartment in one of Columbus’ top neighborhoods? That’s not easy. For proof, look to the 2019 Columbus, Ohio, multifamily forecast report released by Marcus & Millichap. According to the report, Columbus’ apartment vacancy rates will remain among the lowest of major U.S. metropolitan areas throughout this year.
Marcus & Millichap said that Class-C multifamily units are especially in demand here, with the vacancy rate among these apartment types hovering in the mid-2-percent range.
This high demand for multifamily units, and the continuing strength of this sector, will be one of the many CRE topics addressed at this month’s 5th Annual Columbus Commercial Real Estate Summit held by REjournals.
The summit, to be held April 25 at The Grand Event center in Columbus, will feature some of the top CRE professionals in the region. These pros will focus on the enduring strength of the Columbus commercial real estate market, including the apartment sector, a market slice that is showing no signs of slowing.
Certain areas of Columbus are doing especially well when it comes to the multifamily sector. Marcus & Millichap pointed specifically to the suburbs of Hilliard and Westerville. These areas received several hundreds of new units each last year, with more new apartment construction expected in 2019.
But the bulk of new apartment construction will occur in the urban core of Columbus, to no one’s surprise. Marcus & Millichap cited strong employment gains in downtown Columbus as providing a boost to the apartment market here. For instance, Root Insurance recently announced plans to add nearly 500 jobs during the next several years at a new downtown Columbus location. Healthcare software company CoverMyMeds is also looking for a new headquarters in the adjacent Franklinton neighborhood. This project is expected to bring 1,000 jobs to Columbus’ core.
Investors are particularly interested in the University District neighborhood around The Ohio State University’s campus. Marcus & Millichap says that private buyers are seeking affordable entry costs here and are finding plenty of apartment developments from which to choose.
Marcus & Millichap estimates that developers will add 4,100 new apartment units to the Columbus market this year. That is down a bit from the 5,200 new units that developers added to the region in 2018. Despite the new units, Marcus & Millichap predicts that the multifamily vacancy rate should drop 10 basis points this year to 3.9 percent. Several submarkets should see vacancy rates under 3 percent.
Finally, Marcus & Millichap says that rents will continue to rise, too, predicting a 5.1 percent increase in apartment rents in 2019, a figure equal to an average of $997 a month.
Interested in learning more about the surging Columbus apartment market? Or maybe you’re ready to hear what the industry experts have to say about the office, retail, industrial and healthcare sectors? If so, be sure to sign up for REjournals’ Columbus Commercial Real Estate Summit. You can find out more about the conference here.
