Written by: Collin Fitzgerald
Collin specializes in research capabilities, providing support for the Colliers Columbus Office, Industrial and Retail groups. He is responsible for executing data reports, maintaining a commercial property database, reporting quarterly trends, performing data analysis and utilizing statistical information to predict future behavior in the market. Keep reading for insight into upcoming lease expirations over the next 12 months.
The above chart shows lease expirations in the next 12 months. Click on image to enlarge it.
In the Columbus region, the majority of office leases that are set to expire in the next 12 months involve spaces under 2,499 square feet. Over the next 12 months, 245 office leases are set to expire, covering over 1.5 million square feet of commercial space.
The substantial volume of lease expirations is likely to increase competition among landlords to retain existing tenants or attract new tenants. Tenants, aware of the abundant options available, may leverage this situation to negotiate more favorable lease terms. This dynamic could lead to more flexible rental agreements, potentially lower rental rates, and increased tenant incentives, such as build-out allowances or rent-free periods. As a result, landlords may need to adopt more aggressive marketing strategies and possibly invest in property upgrades to maintain or enhance their buildings' appeal.
For tenants, the upcoming lease expirations present a unique opportunity to relocate to more desirable or cost-effective spaces. Companies looking to expand or upgrade their office environments might find this period particularly advantageous, given the likely increase in available properties. However, the influx of vacant spaces could also lead to higher vacancy rates if not matched by sufficient demand. Overall, the state of the office market in Columbus is poised for significant shifts, driven by these impending lease expirations, requiring strategic planning from both landlords and tenants to navigate the evolving landscape successfully.
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