COLUMBUS, OH— Tenant demand in the Columbus office market will be steady in 2008, though the delivery of 1.1 million square feet of space will put additional upward pressure on vacancy, according to the 2008 National Office Report by Marcus & Millichap, the nation’s largest real estate investment services firm. Fortunately, deliveries of new office space are expected to decline next year, following three years of above-average activity.
Also included in the report is the firm’s annual National Office Index (NOI), a snapshot analysis that ranks 43 office markets based on a series of 12-month forward-looking supply and demand indicators. Columbus moves down three places this year to No. 42.
“With average cap rates expected to hover in the mid-8 percent range, local and regional investors will remain active in the Columbus office market,” says Greg A. Moyer, (photo at right ) regional manager of Marcus & Millichap’s Columbus office
Following are some of the most significant aspects of the Columbus Office Research Report:
* Employers are expected to expand payrolls 0.4 percent this year with the addition of 4,200 jobs.
*Completions are expected to total 1.1 million square feet in 2008.
* Vacancy is forecast to end the year at 18.4 percent.
*Asking rents are expected to gain 2 percent to $17.82 per square foot, while effective rents will rise 2.2 percent to $14.68 per square foot.
* Investment activity could pick up in 2008, especially in the Northeast submarket.
*Completions are expected to total 1.1 million square feet in 2008.
* Vacancy is forecast to end the year at 18.4 percent.
*Asking rents are expected to gain 2 percent to $17.82 per square foot, while effective rents will rise 2.2 percent to $14.68 per square foot.
* Investment activity could pick up in 2008, especially in the Northeast submarket.
In the 2008 NOI, Seattle moved up three places to secure the No. 1 spot, surpassing last year’s leader New York City, which slipped to No. 2. Boston moved up two spots to No. 3, while San Francisco jumped 12 places to the No. 4 position. Los Angeles slipped two spots, coming in at No. 5.
For a copy of Marcus & Millichap’s National Office Report and the complete NOI rankings, visit http://www.marcusmillichap.com/.
CONTACT:
Stacey Corso
Public Relations Manager
Marcus & Millichap
2999 Oak Road
Suite 210
Walnut Creek, CA 94597
Office: 925.953.1716
Mobile: 415.672.6460
Fax: 925.953.1710
http://www.marcusmillichap.com/
Stacey Corso
Public Relations Manager
Marcus & Millichap
2999 Oak Road
Suite 210
Walnut Creek, CA 94597
Office: 925.953.1716
Mobile: 415.672.6460
Fax: 925.953.1710
http://www.marcusmillichap.com/
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