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    2022 Q1 Market Snapshot for the Columbus, OH Office Market


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    2022 Q1 Market Snapshot for the Columbus, OH Office Market

    Economic and Demographic Update

    Population: The population in Columbus in the 1Q of 2022 was 2,169,252. This represents an increase in total population of 19,390 over the course of the last year. During 2021 Q1, the Columbus population stood at 2,149,862. The number of people employed rose to 1,118,996 in 2022 Q1 from 1,111,454 over the last quarter, an increase of 7,542 or 0.68% for the period.

    Median Income: The median household income for Columbus in the 1Q of 2022 was $73,854. At this time last year, the median household income was $67,514. 2022 Q1 median income represents a quarter-over-quarter increase of 2.18% and a year-over-year increase of 9.39%. Columbus has a median household income greater than the U.S. average, which is $70,941.

    Current and Historical Data Review (Rates PSF, Vacancy)

    Office leasing: Overall office base rent rates have increased by $0.31/SF. They went from $15.14/SF in 2021 Q4 to $15.45/SF in this most recent quarter. Office rates grew in 2022 Q1 when compared to last year’s quarter, when office base rent was $14.97/SF.

    Vacancy rates also went from 9.40% to 9.30%. They stood at 9.00% this time last year. The vacancy rate is expected to increase from 9.30% to 9.50% next quarter.

    In the Columbus market’s central business district (CBD) specifically, 2022 Q1 base rents stood at $20.32/SF, an increase from $20.24/SF in 2021 Q4. When compared to last year’s quarter, CBD office rates decreased from $21.62. 

    CBD vacancy rates went from 8.65% to 8.89%. The CBD vacancy rate is expected to decrease to 8.94% next quarter. 

    Office Sales Metrics (Average Cap Rates, Volume, Average Price PSF)

    For investors, the average cap rate during 2022 Q1 was 7.20%, the same as the previous quarter. The average cap rate was 7.70% this quarter last year.

    In terms of transaction volume, there were 61 sales transactions during the period. That’s a decrease compared to the 85 transactions in the previous period. Last year at this time, there were 49 transactions. In terms of transaction amounts, office transactions were valued at $77,107,136 in 2022 Q1. That’s a decrease compared to $96,954,080 of transaction value in the previous period. Last year at this time, office transactions were valued at $43,665,000.

    Industrial Leasing Metrics (Rates PSF, Vacancy)

    Industrial leasing: For the Columbus, OH industrial sector, we look at warehouse and distribution spaces specifically. Warehouse and distribution base rent rates have increased by $0.34/SF. They went from $6.09 in 2021 Q4 to $6.43/SF in this most recent quarter. Warehouse and distribution rates grew in 2022 Q1 when compared to last year’s quarter, when industrial base rent was $5.55/SF.

    Vacancy rates also dropped from 3.40% to 2.60%. Next quarter, the vacancy rate is expected to reach 2.80%.

    Industrial Sales Metrics (Average Cap Rates, Volume)

    For investors, the average industrial cap rate during 2022 Q1 was 6.00%, compared to the previous quarter’s average cap rate of 6.90%. The average cap rate was 7.00% this quarter last year.

    In terms of sales volume, industrial transactions were valued at $424,188,032 during the quarter. That’s a decrease compared to $1,192,377,856 of transaction value in the previous quarter. Last year at this time, industrial sales transactions totaled $317,475,328.

    Questions about the report and what this means for your commercial real estate strategy? Connect with an Allegro expert today.

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    All data aggregated in this report is provided by CoStar Realty Information Inc. CoStar is a provider of information, analytics and marketing services to the commercial property industry in the United States, Canada, the United Kingdom, France, Germany, and Spain.

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