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Industrial Outlook
Columbus | Q2 2016
Quality Class A bulk product current availability (s.f.)
Source: JLL Research
Industrial activity in expanding areas, since 2013 (s.f.)
Source: JLL Research
Accessibility to major Atlantic and Gulf coast ports
Source: JLL Research, US Army Corps of Engineers
Quality Class A bulk product remains available
Southern Columbus continues to experience rapid bulk warehouse activity and
there are still several quality blocks of space available between 250,000 to
500,000 square feet. In 2016, 82.1 percent of all quality bulk leasing activity has
taken place either below 250,000 square feet or above 500,000 square feet,
leaving roughly 2.2 million square feet available in the mid-range sector. This
recent trend has pushed landlords to be more aggressive when courting tenants,
but they remain optimistic that the vacancies will level out through the course of
2016. Across all ranges, the majority of the Class A bulk product lies in the
southeast submarket, although this quality product type is available in several
pockets around Columbus.
Industrial footprint continues to expand along highway access points
The southern submarkets have long found success due to their proximity to the
Rickenbacker Intermodal terminal and large parcels of available land. Now the
industrial activity in Columbus is expanding geographically. Over the last
eighteen months, leasing and development activity has ramped up in
neighboring areas of the Columbus region such as West Jefferson and Etna.
Other outlying markets within the region, Johnstown and Hebron for instance,
continue to see more activity. One such tenant moving into the outlying area of
Columbus is Bleckmann, a European logistics firm, who signed a 260,000-
square-foot lease at the Atrium building in Johnstown. Since 2013, Etna and
West Jefferson have delivered 3.1 million square feet of industrial space.
Panama Canal expansion implications for Columbus
As Columbus continues to be sought after as a logistics hub, the expansion of
the Panama Canal will bring even more opportunities for logistics and e-
commerce services to the area. The logistics outlay developing in Columbus is
positioned to capitalize on the shift of goods to the Atlantic and Gulf coast ports,
where the Capitol City is less than a day’s drive from most ports along the
Atlantic. Columbus is within a day’s drive from nearly half of the US population,
ultimately furthering the current industrial activity in areas like Groveport, Etna,
and Obetz. Rickenbacker Inland Port’s rail access is also within two days of the
six major Gulf and east coast ports standing to benefit from the canal expansion.
Class A bulk space available for pipeline of demand
Industrial Insight
Columbus | Q2 2016
$3.73Average total asking rent
3,711,064Total under construction (s.f.)
578,053Quarterly completions (s.f.)
2,043,251YTD net absorption (s.f.)
6.4%Total vacancy
2,233,000Planned construction (s.f.)
408,241Quarterly net absorption (s.f.)
244,262,041Market Size(s.f.)
JLL | Columbus | Industrial Outlook | Q2 2016
02468
1012
100,000 - 249,999s.f.
250,000 - 499,999s.f.
> 500,000 s.f.#
of b
lock
s
Licking County North Southwest Southeast
0 500,000 1,000,000 1,500,000 2,000,000
Johnstown
Hebron
West Jefferson
Etna
Delivered s.f.
Leased s.f.
93%
Of all foreign imported cargo
volume from the largest Atlantic
and Gulf coast ports, 93 percent of
total tonnage is less than 2 days
drive from Columbus.
Projects under construction by submarket (s.f.) Average total asking rent ($ p.s.f.)
Source: JLL Research
Notable sales in 2016 Notable leases signed in the second quarter
Source: JLL Research
Large block availabilities Net absorption & overall vacancy rate
Source: JLL Research
Industrial property clock New construction deliveries
Source: JLL Research Source: JLL Research
$3.33
$3.42 $3.43
$3.52
$3.61
$3.73
$3.00
$3.30
$3.60
$3.90
2011 2012 2013 2014 2015 YTD 2016
1,183,000
2,096,000
5,660,000
2,818,000
1,481,000
0
2,000,000
4,000,000
6,000,000
2012 2013 2014 2015 YTD 2016
Property Submarket Tenant Leased s.f.
Atrium Madison County Bleckmann 262,994
2303 John Glenn Avenue Southeast Genco 173,378
3950 Venture Court West Panacea 168,850
Creekside III Southeast XPO Logistics 151,200
Park 70 Etna Building 4 Licking County Coty LCD 144,236
7600 Industrial Parkway Union County N/A 75,000
0.0%
4.0%
8.0%
12.0%
-10,000,000
0
10,000,000
2011 2012 2013 2014 2015 YTD 2016
s.f.
Net absorption Total vacancyExisting Under Construction
Size range Class A Class B Class C Class A Class B
100-249 k.s.f. 7 9 6 0 0
250-499 k.s.f. 8 1 0 2 0
500-749 k.s.f. 2 2 1 1 0
Property Buyer Bldg s.f. $ p.s.f
SouthPark VIII Exeter Property Group 393,696 $31.35
SouthPark VII Exeter Property Group 393,232 $31.35
2652 Fisher Road Diamond Properties 391,000 $21.71
5920 Green Pointe Drive South Clarion Partners 354,000 $53.56
SouthPark IV Lincoln Property 290,606 $41.11
2660 Fisher Road Diamond Properties 204,806 $21.71
Land
lord
leve
rage
Tenant leverage
Peaking
market
Falling
market
Bottoming
marketRising
market
Source: JLL Research
Source: JLL Research
Source: JLL Research
Columbus Q2 ‘15
Columbus Q2 ‘14
JLL | Columbus | Industrial Outlook | Q2 2016
2,116,064
855,000
600,000
140,000
0
2,000,000
Southeast Licking County East West
Columbus Q2 ‘16
Industrial Statistics
Columbus | Q2 2016
JLL | Columbus | Industrial Outlook | Q2 2016
Inventory
(s.f.)
Quarterly
total net
absorption
(s.f.)
YTD
total net
absorption
(s.f.)
YTD
total net
absorption
(% of stock)
Total
vacancy
(%)
Total
availability
(%)
Average
total asking
rent
($ p.s.f.)
Quarterly
completions
(s.f.)
YTD
completions
(s.f.)
Under
construction
(s.f.)
Columbus Totals
Warehouse & Distribution 189,048,637 304,519 1,836,198 1.0% 6.7% 8.8% $3.73 478,053 903,220 3,011,064
Manufacturing 32,753,548 103,722 207,053 0.6% 4.4% 6.8% $3.72 0 0 700,000
Totals 221,802,185 408,241 2,043,251 0.9% 6.4% 8.5% $3.73 478,053 903,220 3,711,064
Flex 22,459,856 68,363 217,256 1.0% 5.2% 8.0% $5.90 100,000 0 0
CBD
Warehouse & Distribution 1,885,908 0 0 0.0% 0.0% 1.1% $4.25 0 0 0
Manufacturing 597,948 0 0 0.0% 0.0% 18.8% $3.95 0 0 0
Totals 2,483,856 0 0 0.0% 0.0% 4.4% $4.17 0 0 0
Flex 396,753 3,355 3,355 0.8% 50.4% 50.4% $5.00 0 0 0
North
Warehouse & Distribution 12,601,007 99,243 55,880 0.4% 4.7% 9.0% $5.07 0 0 0
Manufacturing 1,075,041 0 0 0.0% 23.8% 26.5% $3.50 0 0 0
Totals 13,676,048 99,243 55,880 0.4% 5.3% 6.8% $4.84 0 0 0
Flex 4,851,931 -52,022 -65,836 -1.4% 5.2% 7.2% $7.05 0 0 0
East
Warehouse & Distribution 18,816,700 24,493 224,956 1.2% 0.5% 2.2% $4.54 0 0 855,000
Manufacturing 2,966,879 17,000 17,000 0.6% 8.4% 15.1% $4.11 0 0 0
Totals 21,783,579 41,493 241,956 1.1% 2.3% 6.6% $4.43 0 0 0
Flex 4,049,092 55,897 44,261 1.1% 4.0% 5.9% $6.43 100,000 100,000 0
Southeast
Warehouse & Distribution 69,395,407 318,645 1,446,502 2.1% 10.4% 11.5% $3.52 478,053 1,381,273 2,016,064
Manufacturing 5,843,348 56,000 86,000 1.5% 5.6% 5.6% $3.00 0 0 100,000
Totals 75,238,755 374,645 1,532,502 2.0% 9.1% 13.2% $3.39 478,053 1,381,273 2,116,064
Flex 2,744,989 8,600 38,918 1.4% 2.0% 4.8% $4.94 0 0 0
Southwest
Warehouse & Distribution 17,957,226 0 -141,060 -0.8% 7.9% 10.2% $3.76 0 0 0
Manufacturing 901,369 51,610 86,941 9.6% 0.5% 6.7% $3.15 0 0 0
Totals 18,858,595 51,610 -54,119 -0.3% 3.8% 10.1% $3.92 0 0 0
Flex 1,997,063 15,588 94,782 4.7% 3.7% 15.5% $5.57 0 0 0
West
Warehouse & Distribution 30,820,234 -87,300 21,579 0.1% 5.2% 8.2% $3.12 0 0 140,000
Manufacturing 2,154,836 -30,740 -42,740 -2.0% 2.6% 2.6% $3.54 0 0 600,000
Totals 32,975,070 -118,040 -21,161 -0.1% 6.3% 9.4% $3.50 0 0 740,000
Flex 5,656,351 19,445 78,576 1.4% 4.5% 5.7% $5.53 0 0 0
Outlying
Warehouse & Distribution 37,572,155 -50,562 228,341 0.6% 4.9% 7.1% $3.71 0 0 0
Manufacturing 19,214,127 9,852 59,852 0.3% 4.1% 6.4% $3.93 0 0 0
Totals 56,786,282 -40,710 288,193 0.5% 4.5% 7.6% $3.79 0 0 0
Flex 2,763,677 17,500 23,200 0.8% 6.6% 8.8% $5.22 0 0 0
Industrial Development Report
Columbus | Q2 2016
JLL | Columbus | Industrial Outlook | Q2 2016
This report analyzes all industrial developments under construction & new deliveries > 30,000 s.f.
Total leased at delivery (%) 49.7%
Total speculative at delivery (s.f.) 1,060,273
Total BTS at delivery (s.f.) 421,000
Total Owner-User at delivery (s.f.) -
Total # of properties delivered 4
Asking rental rate (low - high, NNN-based) $3.50 - $3.75
Top projects delivered to date
Building RBA (s.f.) Delivery dateLeased at delivery
(%)
Duke Building 482 482,220 Q1 2016 53%
Exxcel CenterPoint Business Park 478,053 Q2 2016 0%
Duke-BASF 421,000 Q1 2016 100%
Airside Two 100,000 Q2 2016 60%
Total pre-leased (%) 70.2%
Total speculative under construction (s.f.) 1,156,064
Total BTS under construction (s.f.) 1,855,000
Total Owner-user under construction (s.f.) 700,000
Total # of properties UC 7
Asking rental rate (low - high, NNN-based) $3.50 - $4.25
Top 5 projects currently under construction
Building RBA (s.f.) Delivery date Pre-leased (%)
Amazon Fulfillment Center 1,000,000 Q3 2016 100%
Amazon Distribution Center 855,000 Q3 2016 100%
Rogue Fitness 600,000 Q3 2016 100%
Rickenbacker 567 567,000 Q2 2017 0%
Groveport II 449,064 Q3 2016 0%Speculative
Speculative
Owner Construction type
Owner-user
Northpoint
Vantrust
1047 Cleveland LLC
Prologis
Duke Realty
BTS
BTS
Southeast
Southeast
East
Licking County
Southeast
Historical deliveries (s.f.)
Construction typeOwnerSubmarket
East
Southeast
Southeast
Southeast
Daimler
Duke Realty
Exxcel Project Management
Duke Realty
Speculative
New deliveries
Completions in-depth
1,481,273Total delivered YTD (s.f.)
Speculative
BTS
Speculative
Submarket
Under construction
3,711,064Under construction (s.f.)
Under construction in-depth
Upcoming deliveries by year (s.f., excludes YTD completions)
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
2011 2012 2013 2014 2015 YTD 2016
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
Under construction Under construction
2016 2017
BTS Owner-user Speculative
Industrial Sales Activity
Columbus | Q2 2016
JLL | Columbus | Industrial Outlook | Q2 2016
This report analyzes all industrial sales > 50,000 s.f.
$121,068,768
17
$37
6.3%
88.4%
10.1%
1.4%
5-6.5% 0 1 $1,750,000
6.5-7.5% N/A 16 $119,318,768
Top 10 sales transactions past two quarters
Size (s.f.) $ p.s.f. Sale date
354,000 $54 Mar-16
393,696 $31 Feb-16
393,232 $31 Feb-16
290,606 $41 Feb-16
391,000 $22 Feb-16
184,152 $43 Apr-16
143,335 $52 Feb-16
132,800 $43 Apr-16
116,590 $43 Apr-16
162,400 $30 May-16
Diamond Properties
Lincoln Property Company
Exeter Property Group
Exeter Property Group
Manufacturing sales volume as % of
total YTD
Invesco Advisors
Invesco Advisors
Invesco Advisors
Garrison Investment Group
$12,350,000
$12,350,000
$12,040,000
$8,488,223
6600 Donn Eisele Street Dalfen Abercrombie & Fitch $4,900,000
2787-2805 Charter Street Dalfen Hackman Capital $5,759,536
3940 Gantz Road Dalfen Hackman Capital $5,056,508
Hackman Capital $7,986,672
2235 Southwest Boulevard Lincoln Property Company Invesco Advisors $7,509,691
2829-2843 Charter Street Dalfen
3655 Brookham Drive
2652 Fisher Road
3357 Southpark Place
3423 Southpark Place
5920 Green Pointe Drive South Clarion Partners Waxman Industries $18,961,297
Building address Buyer company Seller company Sales price $
Sales volume $ by submarket
Warehouse/Dist. sales volume as %
of total YTD
Flex/R&D sales volume as % of total
YTD
Cap rate range
Core Class A Ind.
Core Class A Flex
Average Class A price p.s.f. YTD
At a glance
Total volume YTD
Number of transactions YTD
Average Class A cap rate YTD
Sales activity by building type
Transactions details
Number of partial interest
transactions
Top sellers (s.f.)Top buyers (s.f.)
Number of domestic buyers
Foreign capital $
Average partial interest acquired
Number of foreign buyers
Domestic capital $
$107,033,768
$12,285,000$1,750,000
3,093,881 s.f.
287,554 s.f.248,826 s.f.
0 s.f.
500,000 s.f.
1,000,000 s.f.
1,500,000 s.f.
2,000,000 s.f.
2,500,000 s.f.
3,000,000 s.f.
3,500,000 s.f.
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
Warehouse / Distribution Flex/R&D Manufacturing
Sum of Price ($) Sum of RBA (SF)
22%
21%
21%
16%
10%
7%3%
Exeter Property Group Dalfen
Diamond Properties Lincoln Property Company
Clarion Partners Olymbec Corporate Group
Center Point Development
38%
21%
17%
10%
7%
4% 3%
Invesco Advisors Garrison Investment Group
Hackman Capital Waxman Industries
Ball Corporation Abercrombie & Fitch
Sheaf & Jentgen Companies
$57,660,400
$37,797,071
$23,861,297
$1,750,000
Southwest
West
Southeast
East
Industrial Employment Update
Columbus | Q2 2016
JLL | Columbus | Industrial Outlook | Q2 2016
4.7%U.S. unemployment
1.6%U.S. 12-month job growth
3.9%Columbus unemployment
1.9%Columbus 12-month job growth
5.2%Ohio unemployment
1.3%Ohio 12-month job growth
Industry employment stratification: Columbus
Trade, Transportation & Utilities,
194,100 , 18%
Professional & Business Services,
177,200 , 17%
Government, 171,000 , 16%
Educational & Health Services, 155,900 , 15%
Leisure & Hospitality, 104,700 , 10%
Financial Activities, 80,300 , 8%
Manufacturing, 72,700 , 7%
Other Services, 43,100 , 4%
Mining, Logging & Construction, 37,700 , 3%
Information, 16,700 , 2%
Employment vs. unemployment rate: Columbus
0%
3%
6%
9%
12%
780,000
840,000
900,000
960,000
1,020,000
1,080,000
2006 2008 2010 2012 2014 2016
Nonfarm employment
Unemployment
Job growth (12-month change): United States vs. Columbus
Job growth/loss by sector (12-month change): Columbus
Industrial employment trends (12-month change, 000s): Columbus
-4.0%
-2.0%
0.0%
2.0%
4.0%
2010 2011 2012 2013 2014 2015 2016
Columbus United States
-400
-200
1,300
1,700
1,800
2,000
2,500
3,300
3,400
4,000
Information
Trade, Transportation & Utilities
Manufacturing
Financial Activities
Professional & Business Services
Government
Other Services
Mining, Logging & Construction
Leisure & Hospitality
Educational & Health Services
-25.0
-15.0
-5.0
5.0
15.0
2010 2011 2012 2013 2014 2015 2016
Trade,Transportation & UtilitiesManufacturingOther ServicesMining, Logging & Construction
Industrial Submarket Map
Notable construction projects
Amazon Distribution Center
Tenant: Amazon
Square Feet: 855,000
Landlord: Prologis
Amazon Fulfillment Center
Tenant: Logistics User
Square Feet: 1,000,000
Landlord: Duke Realty
Groveport Park II
Tenant: N/A
Square Feet: 449,064
Landlord: Northpoint
JLL | Columbus | Industrial Outlook | Q2 2016
Estimated completion:
Q3 2016
Estimated completion:
Q3 2016
Estimated completion:
Q3 2016
Rickenbacker 567
Tenant: N/A
Square Feet: 567,000
Landlord: Vantrust
Estimated completion:
Q2 2017
Rogue Fitness
Tenant: Rogue Fitness
Square Feet: 600,000
Landlord: Wagenbrenner
Estimated completion:
Q3 2016
For more information, please contact:
About JLL
JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased
value by owning, occupying and investing in real estate. A Fortune 500 company with annual fee revenue of $4.7 billion and gross revenue of $5.4
billion, JLL has more than 230 corporate offices, operates in 80 countries and has a global workforce of approximately 58,000. On behalf of its clients,
the firm provides management and real estate outsourcing services for a property portfolio of 3.4 billion square feet, or 316 million square meters, and
completed $118 billion in sales, acquisitions and finance transactions in 2014. Its investment management business, LaSalle Investment Management,
has $56.0 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For
further information, visit www.jll.com.
About JLL Research
JLL’s research team delivers intelligence, analysis and insight through market-leading reports and services that illuminate today’s commercial real
estate dynamics and identify tomorrow’s challenges and opportunities. Our more than 400 global research professionals track and analyze economic
and property trends and forecast future conditions in over 60 countries, producing unrivalled local and global perspectives. Our research and expertise,
fueled by real-time information and innovative thinking around the world, creates a competitive advantage for our clients and drives successful
strategies and optimal real estate decisions.
This publication is the sole property of Jones Lang LaSalle IP, Inc. and must not be copied, reproduced or transmitted in any form or by any means,
either in whole or in part, without prior written consent of Jones Lang LaSalle IP, Inc.
COPYRIGHT © JONES LANG LASALLE IP, INC. 2016
Andrew Batson
Manager, Great Lakes Research
+1 216 937 4374
Ross Bratcher
Research Analyst
+ 1 513 719 3706
Peter McStravick
Research Analyst
+1 614 460 4417