In addition, the industrial market posted positive net absorption of 1.4 million square feet in the first quarter.

“Industrial absorption is being driven by logistics and distribution companies that desire the central geographic location and cargo transport facilities at Rickenbacker International Airport,” says Robin Mitchell, research analyst in Cushman & Wakefield's Columbus office. “Three distribution firms, Gardner, Inc., PalmerDonavin and Inno-Pak, absorbed 495,000 square feet, and logistics firms Kenco, CEVA and NFI absorbed 548,000 square feet in the first quarter.”

And although the office sector ended the quarter with 54,000 square feet in negative absorption, C&W researchers remain confident that absorption will turn positive in the next few months. But it's the new construction numbers that really stand out. The 1.6 million square feet underway is roughly double the ten-year historical average.

Alliance Data Systems and Nationwide Insurance are both expanding, and Amazon, after finishing several buildings this quarter, will soon complete a 150,000 square foot data center in the northeast suburb of New Albany. And Crawford and Hoying's Dublin Bridge Park, a mixed-use development along the Scioto River in suburban Dublin, will have 373,000 square feet of office space.

Columbus has one of the healthiest economies in the US, with an unemployment rate of just 4.5%, below both the state and national averages. And C&W expects that space demand will remain healthy. Furthermore, “rents should continue upward through the first half of 2016, but most likely level off as more space comes onto the market in the second half,” according to C&W. “vacancy rates may float slightly upward in late 2016 as absorption plays catch-up to deliveries of new space.”

COLUMBUS—The office market here has been building up a head of steam for several years now, and in the first quarter, developers set a record by having 1.6 million square feet under construction, including about 600,000 square feet of speculative projects, according to Cushman & Wakefield's new market report.

The downtown has outperformed the suburbs, and now has a vacancy rate of just 12.4%, compared to 14.2% for the metro area as a whole. And the CBD's future looks bright, as the city's Scioto Greenways project has begun adding vast amounts of parkland along the downtown's waterfront, perhaps providing a big boost to companies that hope to recruit new employees attracted to clean, livable environments.

“It's a little premature to speculate on the impact of Scioto Greenways to the downtown office market- there is no overall development plan or new construction occurring yet, and I would suspect that its impact wouldn't be realized until Nationwide Realty's plans and timetable are presented in the next few years,” Randy Stephens, managing director of C&W's Columbus office, tells GlobeSt.com.

“However, its adjacency to East Franklinton, which has been touted as the next hot neighborhood, has not gone unnoticed,” he adds. “Nationwide Realty, is a forward thinking and intuitive investor and developer in Columbus as the Arena District and Grandview Yard has shown us, so any increase in activity such as purchasing several parcels in Franklinton to consolidate its holdings causes everyone in the commercial real estate business to take notice.”

In addition, the industrial market posted positive net absorption of 1.4 million square feet in the first quarter.

“Industrial absorption is being driven by logistics and distribution companies that desire the central geographic location and cargo transport facilities at Rickenbacker International Airport,” says Robin Mitchell, research analyst in Cushman & Wakefield's Columbus office. “Three distribution firms, Gardner, Inc., PalmerDonavin and Inno-Pak, absorbed 495,000 square feet, and logistics firms Kenco, CEVA and NFI absorbed 548,000 square feet in the first quarter.”

And although the office sector ended the quarter with 54,000 square feet in negative absorption, C&W researchers remain confident that absorption will turn positive in the next few months. But it's the new construction numbers that really stand out. The 1.6 million square feet underway is roughly double the ten-year historical average.

Alliance Data Systems and Nationwide Insurance are both expanding, and Amazon, after finishing several buildings this quarter, will soon complete a 150,000 square foot data center in the northeast suburb of New Albany. And Crawford and Hoying's Dublin Bridge Park, a mixed-use development along the Scioto River in suburban Dublin, will have 373,000 square feet of office space.

Columbus has one of the healthiest economies in the US, with an unemployment rate of just 4.5%, below both the state and national averages. And C&W expects that space demand will remain healthy. Furthermore, “rents should continue upward through the first half of 2016, but most likely level off as more space comes onto the market in the second half,” according to C&W. “vacancy rates may float slightly upward in late 2016 as absorption plays catch-up to deliveries of new space.”