by Dan Rafter
Industrial real estate remains a hot commodity in the Central Ohio region. In its latest industrial report, Cassidy Turley says that the industrial real estate market in the area is still on a record-breaking pace in 2014.
According to Cassidy Turley, the mid-year vacancy rate of industrial real estate in Columbus and Central Ohio stands at a low 7.4 percent. Even more impressive, the market has absorbed nearly 2.5 million square feet of industrial space in the first and second quarters of this year. That resulted in the best absorption rate that Cassidy Turley has ever seen in the region for the first two quarters of any year.
Robin Mitchell, research analyst for Cassidy Turley’s Columbus office, said that the modern bulk industrial market has been especially strong. She said that this sector’s vacancy rate stood at 4 percent during the second quarter of this year. This sector has also absorbed more than 1 million square feet combined in the first and second quarters of 2014.
“Its best performance in four years,” Mitchell said.
During the second quarter, Cassidy Turley reports, the industrial market in the center of Ohio absorbed 383,693 square feet. Growth areas include the region’s Out of County submarket, with 410,251 square feet of absorption, and the Southwest market, with 220,052 square feet.
Cassidy Turley researchers predict that the industrial market’s positive showing will continue throughout the year and into 2015, with vacancy rates continuing to fall and absorption numbers continuing to rise.
Cassidy Turley also predicted that new construction should increase through late 2016. Almost 3.5 million square feet of new industrial construction is already underway in the Central Ohio region.