Columbus office insight - Q2 2018
A tale of two markets is taking shape in the Columbus office property sector. One story to be told is that of tenant expansion into either new or premium product, pushing Class A vacancy to historic lows and rents to historic highs. On the contrary, large block vacancy is looming in ageing, existing inventory. Over 1.1 million square feet of large block space is expected to be vacated by the end of the year, with blocks ranging from 65,000 square feet to 300,000 square feet.
Most of these users are relocating and downsizing to more efficient space, often consolidating their employee base into a single location for increased collaboration. Although large block vacancy is looming, there is also a healthy pipeline of tenants in the market that could ensure market fundamentals remain tight. Thus, the second half of 2018 is expected to be far from quiet for the office market.