Economic and Demographic Update

Population: The population in Columbus in the 4Q of 2021 was 2,164,690. This represents an increase in total population of 19,242 over the course of the last year. During 2020 Q4, the Columbus population stood at 2,145,448. The number of people employed rose to 1,114,726 in 2021 Q4 from 1,104,480 over the last quarter, an increase of 10,246 or 0.93% for the period.

Median Income: The median household income for Columbus in the 4Q of 2021 was $71,180. At this time last year, the median household income was $66,574. 2021 Q4 median income represents a quarter-over-quarter increase of 1.76% and a year-over-year increase of 6.92%. Columbus has a median household income greater than the U.S. average, which is $69,124.

Current and Historical Data Review (Rates PSF, Vacancy)

Office leasing: Overall office base rent rates have increased by $0.05/SF. They went from $15.07/SF in 2021 Q3 to $15.12/SF in this most recent quarter. Office rates grew in 2021 Q4 when compared to last year’s quarter, when office base rent was $14.89/SF.

Vacancy rates also decreased from 9.60% to 9.30%. They stood at 8.30% this time last year. Throughout the next quarter, the vacancy rate is expected to change from 9.30% to 9.80%.

In the Columbus market’s central business district (CBD) specifically, 2021 Q4 base rents stood at $20.23/SF, an increase from $20.16/SF in 2021 Q3. When compared to last year’s quarter, CBD office rates decreased from $21.62. 

From Q3 2021 to Q4 2021, CBD vacancy rates remained the same at 7.60%. Throughout 2022 Q1, the CBD vacancy rate is expected to remain the same at 7.60%. 

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

For investors, the cap rate during 2021 Q4 was 7.20%, compared to the previous quarter’s cap rate of 8.00%. The cap rate was 7.80% this quarter last year.

In terms of transaction volume, there were 67 sales transactions during the period. That’s a decrease compared to the 90 transactions in the previous period. Last year at this time, there were 65 transactions. In terms of transaction amounts, office transactions were valued at $65,277,040 in 2021 Q3. That’s a decrease compared to $150,175,824 of transaction value in the previous period. Last year at this time, office transactions were valued at $117,836,320.

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 $0.15/SF. They went from $5.87 in 2021 Q3 to $6.02/SF in this most recent quarter. Warehouse and distribution rates grew in 2021 Q4 when compared to last year’s quarter, when industrial base rent was $5.37/SF.

Vacancy rates also went from 4.60% to 3.50%. Next quarter, the vacancy rate is expected to drop to 3.10%.

Industrial Sales Metrics (Cap Rates, Volume)

For investors, the industrial cap rate during 2021 Q4 was 6.80%, compared to the previous quarter’s cap rate of 7.00%. 

In terms of sales volume, industrial transactions were valued at $1,137,150,464 during the quarter. That’s an increase compared to $242,159,168 of transaction value in the previous quarter. Last year at this time, industrial sales transactions totaled $387,498,016.