Columbus, OH/USA

COLUMBUS, OH – October 28, 2009 –The vacancy rate for the overall market decreased 14 basis points to end the third quarter at 11.22% from 11.36% at the end of the second quarter. This breaks a trend of vacancy increases that goes back to the beginning of 2008. The Out-of- County submarket continues to post the lowest vacancy rate at 5.50%, while the Southeast submarket still records the highest rate at 21.78%.

The industrial market’s bulk subset experienced a more difficult quarter. After starting the year with two straight quarters of vacancy decreases, the industrial bulk vacancy rate shot up almost three percentage points. The direct vacancy rate for the bulk market was 20.16% at the end of the third quarter compared to 17.69% at the end of the second quarter. This is the first time in over two years that the bulk subset, which consists of properties 100,000 square feet or larger, have at least a 28 foot ceiling height, and were built within the last 10 years, has experienced vacancy rates over 20%. 

ABSORPTION
Just as vacancy broke a two quarter trend of decreases, absorption followed suit by recording positive absorption after two quarters of negative absorption. There was 92,500 square feet of positive absorption in the Columbus industrial market in the third quarter 2009. While the Southeast and Out-of-County submarkets experienced negative absorption, the other four submarkets recorded positive absorption with the Northwest submarket having the best quarter (225,000 square feet of positive absorption). The bulk market had a dismal third quarter. There was almost 815,000 square feet of negative absorption in the bulk subset which brought the year to date total into the negative. The Southeast submarket experienced the worst of it as it contributed over 85% of the bulk subset’s negative absorption.

OUTLOOK/FORECAST
There are no signs that the fourth quarter of 2009 is going to be much different than the third quarter. Leasing activity levels for industrial space remains low. Companies requiring space will continue to be able to negotiate bargain basement rates. No significant new construction is planned for the fourth quarter, or for the foreseeable future for that matter. Additional properties will hit the sales market as lenders dispose of troubled assets in larger quantities and owners attempt to unload properties with upcoming loan maturities for which they are unable to arrange new financing.

For a complete industrial research report including a micro look at submarket activity, please visit Colliers.com/Columbus or contact Wayne Henry at 614.827.1724.

About Colliers Turley Martin Tucker

Colliers Turley Martin Tucker has consolidated its ownership structure with Cassidy & Pinkard Colliers, Colliers Pinkard, and Colliers ABR, forming a holding company that is one of the largest commercial real estate service firms in the U.S.  In 2008, the consolidated entity completed more than $9.2 billion in worldwide transactions, including over $3.5 billion in capital markets transactions, and managed more than 335 million square feet of real estate.  The Corporate Solutions division supports more than 22,000 locations for Fortune 1000 companies and delivers a new location “Every 80 Minutes.”  Colliers International is ranked as one of the 2009 World’s Top 100 outsourcing service providers by International Association of Outsourcing Professionals, IAOP Top 100.  For more information about Colliers International, a worldwide affiliation of independently owned and operated companies, visit www.colliers.com.

Contact Information

Wayne Henry
614.827.1724
WHenry@ctmt.com

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