By: Dan Wendorf, Executive Vice President, JLL
Columbus is the industrial envy of other Midwest markets, with more than 219 million square feet of industrial space. And now—with just one new development—Columbus is adding another million to the books.
NorthPoint Development and JLL recently broke ground on a one million-square-foot warehouse in the Rickenbacker submarket of Columbus. See what’s happening now in Clayco’s real-time construction webcam.
NorthPoint’s location selection was not on accident. Throughout Columbus, vacancy is down and demand is up, according to JLL Research. Columbus is the prime location for the brand new warehouse.
Columbus: A Thriving Industrial Market
What makes Columbus, Ohio a top, most sought after market when it comes to industrial spaces like NorthPoint’s warehouse? I’ll give you three reasons that are top of mind, and catching national attention:
- Location, Location, Location. The city is located within a ten-hour drive of nearly half of the American domestic population, making the region ideal for transportation and exports.
- Competitive Market. Columbus features a pro-business climate, where cost of working and living is affordable by comparison to competitive primary and secondary markets.
- Rising reputation. Columbus has developed a strong, industrial market reputation overall. According to Re-Journals, Columbus is home to “15 Fortune 1000 companies and five Fortune 500 ones.” Columbus also offers a tax rate on new capital investment at just 1.6%.
In 2014 alone, approximately “4.7 million square feet of industrial space absorbed across the metro,” according to JLL’s Columbus report. The city’s industrial market is positioned for continued expansion, starting with NorthPoint’s million-square-foot warehouse.
A Peek Inside NorthPoint Development’s Columbus Warehouse
With a shortage of warehouse spaces at this size and stature, NorthPoint’s project couldn’t have come to the market at a better time. According to JLL’s Q2 2015 Industrial Report, the current demand for warehouse space nationwide “exceeds available construction.”
Beyond the warehouse walls, the development is currently being built on a 106-acre property. Once the building is complete, there will still be room for a 500,000-square-foot building nearby. The property is also in close proximity to the Rickenbacker airport, adding to the transportation benefits and accessibility of the speculative warehouses’ location.
The warehouse will clear 36-feet, higher than the standard 32-foot warehouse clearance, and should be completed by this November. According to the Wall Street Journal, added clearance “can be the difference between an empty building and one that attracts a tenant such as Walmart.com or Amazon.com.” The elevated height of the building will be one key attraction for major contenders to the new space.
Many in the ecommerce, food and beverage, logistics and retail world are attached to the Columbus location for large warehouse needs. The speculative warehouse has already received interest from groups in the Midwest and throughout the U.S.
For more about Columbus’ expanding industrial commercial real estate market, download JLL’s Columbus Report.
About the Author
Dan Wendorf is a Senior Vice President with JLL working on the Industrial Services team in the Columbus, Ohio office. Dan specializes in tenant representation, agency leasing, and real estate advisory for industrial tenants and investors. View Dan’s full bio to read up on his experience, or connect with him on LinkedIn.