Economic and Demographic Update
Population: The population in Columbus in the 3Q of 2021 was 2,154,782. This represents an increase in total population of 14,649 over the course of the last year. During 2020 Q3, the Columbus population stood at 2,140,133. The number of people employed rose to 1,114,150 in 2021 Q3 from 1,096,003 over the last quarter, an increase of 18,147 or 1.66% for the period.
Median Income: The median household income for Columbus in the 3Q of 2021 was $76,443. At this time last year, the median household income was $71,320. 2021 Q3 median income represents a quarter-over-quarter increase of 1.04% and a year-over-year increase of 7.18%. Columbus has a median household income greater than the U.S. average, which is $74,302.
Current and Historical Data Review (Rates PSF, Vacancy)
Office leasing: Overall office base rent rates have decreased by $0.02/SF. Rates went from $15.09/SF in 2021 Q2 to $15.07/SF in this most recent quarter. Office rates grew in 2021 Q3 when compared to last year’s quarter, when office base rent was $14.67/SF.
Vacancy rates also went from 9.40% to 9.90%. They stood at 7.80% this time last year. Throughout the next quarter, the vacancy rate is expected to increase from 9.90% to 10.00% next quarter.
In the Columbus market’s central business district (CBD) specifically, 2021 Q3 base rents stood at $20.35/SF, an increase from $20.26/SF in 2021 Q2. When compared to last year’s quarter, CBD office rates decreased from $21.62.
CBD vacancy rates went from 7.71% to 7.23%. They stood at 6.78% in 2020 Q3. Throughout 2021 Q4, the CBD vacancy rate is expected to increase to 7.77% next quarter.
Office Sales Metrics (Cap Rates, Volume, Average Price PSF)
For investors, the cap rate during 2021 Q3 was 7.90%, compared to the previous quarter’s cap rate of 7.70%. The cap rate was 7.90% this quarter last year.
In terms of transaction volume, there were 70 sales transactions during the period. That’s a decrease compared to the 98 transactions in the previous period. Last year at this time, there were 79 transactions. Office transactions were valued at $58,878,500 in 2021 Q3. That’s a decrease compared to $252,136,288 of transaction value in the previous period. Last year at this time, office transactions were valued at $72,128,520
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 $0.17/SF. Rates went from $5.72 in 2021 Q2 to $5.89/SF in this most recent quarter. Warehouse and distribution rates grew in 2021 Q3 when compared to last year’s quarter, when industrial base rent was $5.32/SF.
Vacancy rates also dropped from 6.00% to 4.50%. Next quarter, the vacancy rate is expected to decrease again to 3.70%.
Industrial Sales Metrics (Cap Rates, Volume)
For investors, the industrial cap rate during 2021 Q3 was 7.00%, compared to the previous quarter’s cap rate of 8.90%. The cap rate was 6.50% this quarter last year.
In terms of sales volume, industrial transactions were valued at $292,016,608 during the quarter. That’s an increase compared to $279,182,144 of transaction value in the previous quarter. Last year at this time, industrial sales transactions totaled $231,716,352.
