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Suburban Columbus Office Vacancy Exceeds 21%

PHILADELPHIA-The 21.4% third-quarter vacancy rate for office space in suburban Columbus, OH is 1.9 points higher than in third quarter 2001, pushing asking rates down $0.19 per sf and fostering incentives that cut effective rates by between 10% and 20%.

By Marita Thomas | Updated on November 07, 2002

PHILADELPHIA-With 21.4% of office space in suburban Columbus, OH sitting vacant, it’s a renters’ market. Rising vacancies resulted in a decline in the average asking gross lease rate across class-A and class-B properties to $17.79 per sf, down from $17.98 per sf the previous quarter, according to researchers in the Columbus office of CB Richard Ellis.

Effective rates, however, when adjusted to include free rent and increased tenant improvements, “are typically 10% to 20% less than the asking rates,” the researchers report. While they expect asking rates to remain relatively stable, they say free rent and other incentives will continue to erode effective rental rates.

The third-quarter vacancy rate actually decreased a mere 0.6 point compared with second quarter, due primarily to a single 90,000-sf lease by Excel, Inc.

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