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 Q4 2024 Tenant Migration Report is that the two largest leases this quarter were renewals - one in the Westerville submarket for 61,678 square feet, and the other being in the Easton submarket for 21,487 square feet. The largest new lease was signed in Arlington/Grandview for 14,629 square feet. The average TI given in the past quarter was $23.34 per square foot and the average free rent was 4 months.
Moreover, the report reveals 50% of leases signed this quarter were in Healthcare, Financial Services and Real Estate/Construction, indicating a strong presence and growth potential for these sectors within Columbus' office market.
High-Rise Report - What's Happening Downtown?
The Q4 2024 report highlights a nuanced perspective on Columbus' evolving downtown office landscape. The CBD submarket recorded a slight decrease in vacancy rate to 14.87%, still outperforming the broader market's 18.58% vacancy rate. Positive absorption of 139,859 square feet in the CBD reflected steady activity, though the market continues to face challenges due to hybrid work trends and tenant downsizing
Construction activity is focused primarily on urban areas like the CBD and Arlington/Grandview. Key projects include the Scioto Peninsula redevelopment, Front and Fulton mixed-use buildings, the Gravity project and the historic renovation of the Municipal Light Building. These developments, alongside spaces such as 80 on the Commons and North Market Tower, exemplify a growing preference for mixed-use, 'live, work, play' environments.
Sublease Activity - Analysis of Office Sublease Space
In 2024, sublease availability remained concentrated in suburban hubs, with Dublin, Easton and New Albany being particularly affected. Cardinal Health’s decision to vacate 5100 Rings Road added 406,000 square feet to Dublin’s inventory, while Upstart’s departure from 3075 Loyalty Circle contributed 240,000 square feet in Easton.
Though sublease availability stabilized post-pandemic, Columbus continues to exhibit below-average rates compared to national metrics, underscoring unique local market dynamics and resilient demand in certain sectors.
Predictions
As 2025 begins, the Columbus office market is likely to contend with high vacancy rates and rental rate pressures amid continued adoption of hybrid work models. However, demand for high-quality, flexible spaces with modern amenities is expected to grow, especially in well-located Class A buildings. Mixed-use projects that integrate residential, retail and office spaces may also experience heightened interest as tenant preferences shift towards environments prioritizing convenience and quality of life.
Overall, these trends provide actionable insights for landlords, investors and tenants seeking to navigate a transforming office environment in Columbus. The focus on adaptability, tenant experience and mixed-use functionality will be crucial to future success in this market.
Check out our Q4 2024 Tenant Migration Report, High-Rise Reports, and Sublease Activity Report here!
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