2020: The Year of the Tenant in Central Ohio

 

A cloud of dust is rising across southeastern Franklin County as earth-movers and cement trucks rumble, changing the dynamics of the industrial real estate market for years to come.

Rickenbacker is seeing an unprecedented spate of warehouse construction. Seven multi-tenant buildings totaling almost 1,700,000 square feet are currently under construction. This many empty warehouses haven’t been built in Central Ohio since the turn of the 21st century. These buildings benefit from significant tax incentives and will join three existing, new buildings competing for tenants in the region’s largest submarket.

Elsewhere in the region, speculative warehouses are completed in Gahanna (262,000 sf), going up in New Albany (300,000 sf) and Grove City (150,000 sf), and announced in Canal Winchester (258,000 and 555,000 sf), Marysville (84,000 sf), and Delaware (60,000 sf).

Industry veterans will recognize the market dynamics of the mid 2000’s with intense competition for tenants. The side-effects of this competition – lower rents and more generous tenant allowances and rental concessions – will spill over into submarkets and second-generation buildings across Central Ohio.

Tenants able to identify their long-term space needs will be able to lock in facility costs over the next two years unlikely to be seen again for a decade afterward. If you’ve been thinking of expansion or have less than 24 months remaining in your lease, make a plan now to capitalize in the new year. Elford can help. avulic@elfordrealty.com.