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 by square feet in the industrial sector.
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In the Columbus area, a significant number of industrial leases that are set to expire in the next 12 months involve spaces under 75,000 square feet. This trend is shaping the local industrial real estate market in several ways. First, the predominance of smaller industrial spaces points to a market characterized by a high demand for flexible and cost-effective properties. Smaller businesses and startups, which may not require or be able to afford larger spaces, find these smaller units particularly attractive. This demand ensures a steady stream of renewals and new leases, maintaining robust occupancy rates.
The impact on the market is also seen in the types of businesses these spaces attract. With the rise of e-commerce and the need for last-mile delivery hubs, smaller industrial spaces are increasingly valuable. These businesses benefit from Columbus's strategic location, which offers access to major transportation networks. Consequently, the high demand for these spaces can drive up rental rates, contributing to the overall growth of the industrial real estate sector in the area.
Moreover, the prevalence of smaller expiring leases can influence developers' and investors' strategies. Understanding the sustained demand for sub-75K square foot properties, developers may focus on constructing or renovating buildings to meet this specific need. Investors may prioritize acquiring properties within this size range, viewing them as a stable and profitable investment due to their high occupancy and consistent demand.