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WHAT'S HAPPENING IN THE COLUMBUS OFFICE MARKET? Q3 2024

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 to delve into the key findings of each office report to gain a deeper understanding of the trends driving the Columbus office market.



Tenant Migration - Where are Tenants Moving?


Tenants are constantly relocating their office space to better suit their needs. Using a points system based on signed square feet, we can track where office users are coming and going throughout the city. Check out our tenant migration heat map, and click around for more information on the movement within each submarket.


One of the most significant highlights from the Q3 2024 Tenant Migration Report is that the two largest leases this quarter were renewals – one in the Easton submarket for 72,104 SF and the other in the Westerville submarket for 45,653 SF. The largest new lease of the quarter was signed in Easton for 26,336 SF. Over 55% of tenants remained in their current submarket by moving within the same submarket or renewing their lease.


Moreover, the report reveals that 50% of tenants that signed new leases in the market were in the Business Services, Financial Services and Real Estate/Construction industries, indicating a strong presence and growth potential for these sectors within Columbus' office market.


High-Rise Report - What's Happening Downtown?


The High-Rise Report paints a nuanced picture of the evolving workplace environment in Columbus. Along with recording negative absorption in the third quarter of 2024, the CBD submarket increased vacancy rates to 15.66%, still outperforming the overall market's vacancy rate of 19.29%.


Construction activity remains solely in urban submarkets such as CBD and Arlington/Grandview, with various projects underway, including the Scioto Peninsula, Front and Fulton development, Gravity project, and the renovation of the Municipal Light Building. Mixed-use developments, such as 80 on the Commons, The Hayden, and North Market Tower, signify a shift towards multifunctional spaces catering to the "live, work, play" lifestyle.


Sublease Activity - Analysis of Office Sublease Space


The Sublease Activity Report highlights the concentration of available sublease space in the Dublin, Easton, and New Albany submarkets. Cardinal Health vacating 5100 Rings Road in Dublin resulted in 406,000 square feet of sublease space, while Upstart's departure from 3075 Loyalty Circle in Easton contributed an additional 240,000 square feet.


Sublease availability has stabilized since the end of the pandemic, indicating a response to evolving workplace strategies. However, compared to national averages and top-performing office markets, Columbus exhibits significantly lower sublease availability, suggesting a unique market dynamic.


Predictions


In the coming months, the Columbus office market will likely face continued challenges with high vacancy rates and pressure on rental rates, particularly as hybrid work models persist. However, there may be slight growth in demand for high-quality flexible office spaces as companies prioritize modern, well-located buildings with amenities that cater to employee well-being. Mixed-use developments that blend offices with residential, retail, and entertainment spaces may also see more interest as the market adapts to shifting tenant preferences.


These office reports provide valuable perspectives on the Columbus office market by highlighting key trends, such as shifts in vacancy rates, rental changes, and tenant demand across various submarkets. They offer data-driven insights into how market dynamics—like sublease availability and development pipelines—impact occupancy and leasing patterns. Additionally, the reports help stakeholders understand emerging preferences for flexible, amenity-rich office spaces and mixed-use developments, making them essential tools for investors, landlords, and businesses to make informed decisions in a transforming market.



Check out our Q3 2024 Tenant Migration Report, High-Rise Reports, and Sublease Activity Report here!


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Contact Us for More Information:

Collin Fitzgerald

Research Manager

+1 614 436 9800

collin.fitzgerald@colliers.com

Colliers

Greater Columbus Region

Two  Miranova Place, Suite 900

Columbus, OH 43215

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