Market Trends
- Vacancy climbed 320 basis points (bps) year over year to 6.1%. However, the recent uptick is expected to be short lived as quarterly megadeals like Stanley Black & Decker and Geodis, both signing for recently-completed Class A space, take occupancy in the later half of the year.
- Slowed leasing activity at the end of 2022 and early 2023 rebounded dramatically in the second quarter, totaling 6.8 million square feet (msf). Logistics & Distribution/3PLs were especially active in the second quarter, with most notably DHL taking the HanesBrands sublease in the Pickaway submarket.
- The speculative construction pipeline, totaling 10.3 msf, does remain about 80% available. In the near-term new supply will provide a bit of upward pressure on vacancy. As the current pipeline continues to deliver through the remainder of the year and into 2024, expect a shift in favor of built-to-suit projects.