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2020 COLUMBUS

OFFICE TENANT REPORT

2020 TENANT REPORT

WHAT’S INSIDE? It’s no secret that the Columbus office market is amid a period of tremendous growth. Construction numbers are at an all-time high and with steady demand for new Class A space, development doesn’t seem to be slowing any time soon. Prominent companies continue to lease large blocks of space throughout the area, committing to a presence in Central Ohio. This year also marked the highest-recorded number of office tenants looking for space in the Columbus market, which has driven vacancy to the lowest it’s been in years. This report will explore workplace trends, case studies, migration patterns, tenant interviews and 2020 predictions – all relating to the exploding Columbus office market. Continue reading to find out more!

2020 prediction Look for this icon throughout for insight on 2020 predictions.

Tenant Migration

Workplace Trends

Tenant Behavior

Tenant Insights: Rachel Friedman, TENFOLD

Interview: The Tenant Experts

Tenant Insights: Joelle Brock, Leading EDJE

What’s to Come?

About the Authors

“

Our new headquarters will further enable us to meet the needs of our two most important stakeholders: our customers and our people.

“

- Scott Sureddin CEO, DHL North America Columbus Dispatch

2020 TENANT REPORT

TENANT BEHAVIOR & Case Studies COMPANY CONSOLIDATION -

Consolidation is “the action or process of combining a number of things into a single, more effective or coherent whole.” This is exactly what companies aim to do when merging their offices. Company consolidation has been a huge trend in the Columbus office market recently, as large businesses and headquarters are making the change to bring their employees closer together. Here are a few examples of companies that consolidated their corporate offices around the city.

DHL Headquarters In 2019, DHL invested in a new build-to-suit office to house their North American corporate headquarters. Due to anticipated growth, the company relocated their current 640 employees out of two Polaris buildings into the new property, which can accommodate up to 850 staff members. The choice to consolidate stemmed from the need to support their growing employee base while being better able to serve their customers. DHL also expects the move to build camaraderie, as they incorporated various collaboration areas throughout the building to encourage people to work together.

ADDRESS

360 Westar Place

SIZE

145,000 SF

PROJECT COST $20 Million

REACH

This office oversees 32,000 employees in North America, with 4,300 of those employees being in Ohio.

OhioHealth 2019 was a big year for OhioHealth, as their build-to-suit headquarters reached completion. More than 1,600 employees consolidated to the campus from over 20 satellite locations across the city. Over the next five years, OhioHealth has pledged to add 900 new jobs and $7.3 million in community benefits to the area. By consolidating employees from multiple locations together and adding comfortable amenities like a chapel, cafeteria, and fitness facility, OhioHealth aims to create a home for their network of people, not simply an office.

ADDRESS

3430 OhioHealth Parkway

SIZE

270,000 SF

Sources: Columbus Business First, CoStar, DHL, OhioHealth

PROJECT COST $90 Million

REACH

This office oversees 30,000 employees in Ohio.

2020 TENANT REPORT

TENANT BEHAVIOR & Case Studies CHOOSING COLUMBUS -

Columbus is no stranger to corporate headquarters, as prominent companies like Nationwide, Wendy’s, L Brands and Abercrombie & Fitch have previously chosen Columbus for their national and international center of operations. The city continues to earn the commitment of fast-growing firms due to its first-class business environment and access to top talent. Here are a few examples of companies that are selecting Central Ohio for the location of their corporate offices.

Chipotle Chipotle has made recent headlines, as the company announced they would be completely leaving their former headquarters in Denver, Colorado throughout 2019. Their functions are now split between Newport Beach, California and Columbus, with 150 new jobs added to Central Ohio. The company has signed a 15-year 100,000-square-foot lease at a new mixed-use development in the Arena District. With the ability for the space to accommodate up to 650 employees, Chipotle expects to continue creating jobs in the Columbus market.

ADDRESS 200 Vine Street

SIZE 100,000 SF

REACH This office will oversee 500 employees in Central Ohio.

Root Insurance Perhaps one of the fastest growing companies in Central Ohio, Root Insurance continues to establish their headquarters in Columbus. Since leasing 65,000 square feet at 80 on the Commons in early 2018, the company has expanded that space by 49,000 square feet and opened a 77,000-square-foot call center at Easton. This tech “unicorn” is now valued at $3.6 billion and employs over 700 people. With 860 new jobs projected for the future, Root is also pledging around $5.5 million in income taxes to the city.

ADDRESS

80 E Rich Street

2020 TENANT REPORT

SIZE

114,000 SF

REACH This office oversees 700 employees in Central Ohio.

Sources: Columbus Underground, Columbus Business First, CoStar, Chipotle, Root Insurance

TENANT BEHAVIOR What’s in Store for 2020? I do think something is happening in Columbus. This is the opportunity of a lifetime in this city. We’re going to be a huge part of that.

“

2020 prediction

Major Tenants in 2020 There are currently over 15 tenants in the market requiring 25,000 square feet or more. Half of these large users are finance, technology or healthcare companies, so we predict these industries to drive activity in the market. Prominent tenants such as BMW Financial, Hagerty Insurance, ICC, State Auto, Upstart, Beam Dental, Veeam Software and FacilitySource are searching for space and are expected to make big moves this year. BMW Financial currently occupies a 220,000-square-foot building in Hilliard, but is searching in multiple markets for 150,000 square feet of new space. Because they have shown interest in modern Class A properties, we foresee a large lease signed in a new mixed-use development this year. Beam Dental currently subleases 26,000 square feet in the Central Business District (CBD), but is looking to triple their footprint in 2020. Due to their plan to lease as much as 75,000 square feet, the CBD can expect significant positive absorption in coming months.

- Alex Timm CEO, Root Insurance Columbus Business First

2020 TENANT REPORT

FROM THE TENANT EXPERTS

2020 TENANT REPORT

John Underman and Cal Axe (pictured above) are a full-service leasing and sales team at Colliers | Columbus, with a combined 20 years of commercial real estate experience. Their specialization in tenant representation provides them with expertise on tenant behavior and trends. What areas of the city are you seeing tenants most interested in? Why do you think this is? CA: New builds and modern Class A space are the name of the game. Whichever submarket is building is attracting the most companies - Dublin, Short North, and new developments in Polaris and Easton. JU: I would say anywhere that offers an opportunity for creative space or for walkability to amenities. Are you noticing any trends as far as lease size (SF)? Do you feel as though tenants are typically wanting more or less space now than they were before? CA: Space requirements have definitely contracted over the past decade. The 2010s was a decade of companies reducing real estate footprint in an effort to reduce cost and increase collaboration. We might see this trend regress in the 2020s. The reason: collaboration isn’t always productive, and the workspace has turned into an important recruiting and retention tool. When do you see the highest tenant improvement (TI) allowances? JU: First generation space is going to get the most TI, and it’s just based upon lease term. You’re going to get the most TI with the longest term of lease you can do, but that sweet spot is 7-10 years and typically its between $40 and $50 per square-foot. Stronger local companies tend to push harder for TI, and while they’re still willing to do the term, they’re grinders. Whereas, a corporate team that has a ton of locations will be like, ‘we’ve got to spend a lot more than they’re going to give us in the allowance anyway, and this is a market deal so we’re just ready to rock and roll.’ It seems like strong local tenants get the most TI and it is always on first generation space for longer terms.

Are you noticing any trends as far as term length? What types of tenants are signing shorter terms versus longer terms? CA: In Columbus, vacancy rate is extremely low and construction costs are high, so we are seeing building owners push long term leases. Experienced companies will sign for the long haul if it’s a space, location and build-out they want. Start-ups and younger companies will still prioritize flexibility with their lease term. Are you seeing any trends as far as tenants’ industry? For example – are you seeing a lot more law firms in the market this year than last? CA: I think the Columbus economy has always maintained a healthy mix of industries. This shows when we look at our tenants in the market. Lately we’ve seen exciting growth within the startup community. CoverMyMeds, Root Insurance – groups like these are always going to be scanning the market for growth opportunities.

2020 prediction

From the tenant rep side, what trends do you think we will see going into 2020?

CA: For me, it will be interesting to see what happens to coworking. Columbus is still relatively new to the concept and I wonder which larger local companies jump on the train first. Workplace design will go through some growing pains. Companies are finding that the open office isn’t the most productive layout. I expect to see more hybrid office designs and amenities with the focus of recruiting and retaining. JU: I feel like there’s still a big need for larger, second generation space for companies coming to look at Columbus or growing companies that have a couple hundred people that aren’t ready to spend a big TI and commit for 10 years to a building that only has 50,000 SF left. They want to do 50,000 SF in a 200,000 SF building that – you know, maybe they remove a ceiling or two, but they can grow in 200,000 SF. As we continue to see our tech groups grow, I think the second generation, B class buildings are going to start filling up for us. And then hopefully when they spit out the other side, they take the class A stuff. That’s when we see the office rents really push.

2020 TENANT REPORT

TENANT MIGRATION Statistics from 2019 Tenants are constantly relocating their office space to better fit their needs. By using a points system based on signed square feet, we are able to track where office users are coming and going throughout the city. We also analyzed each of these transactions in detail to compile statistics, identify trends and make predictions for future tenant behavior. Keep reading to find out more information on tenant migration in the Columbus office market.

Sign Date: 2019

Lease Term:

Leases Signed - 37 Signed SF - 357,000 SF Average TI - $17.35 Average Term - 71 months

Highest Average Term Length (in months) by Industry:

months

New Albany

months

Arlington/ Grandview

months

CBD

Education

Leases Signed - 55 Signed SF - 631,000 SF Average TI - $20.13 Average Term - 76 months

123

months

Government

Leases Signed - 42 Signed SF - 440,000 SF Average TI - $11.63 Average Term - 61 months

103

months

Law

months

Highest Average Term Length (in months) by Submarket:

TI Allowance: Highest Average TI Allowance by Industry:

Law

Leases Signed - 47 Signed SF - 653,000 SF Average TI - $20.53 Average Term - 73 months

$29.13

Technology

$26.28

Engineering

$24.12

Highest Average TI Allowance by Submarket:

Polaris Arlington/ Grandview CBD

$31.26 $28.88 $28.43

Leased Square Feet: Highest Total SF Signed by Industry:

Highest Total SF Signed by Submarket:

Healthcare

Financial Services

Insurance

Dublin

CBD

Easton

644,663 SF

316,279 SF

167,807 SF

574,664 SF

554,547 SF

330,857 SF 2020 TENANT REPORT

TENANT MIGRATION HEAT MAP Represents the number of tenants that were new to the submarket

CBD | 51 points

Dublin | 39 points

Represents the number of tenants that left the submarket

Easton | 22 points

24 tenants (431,182 SF)

26 tenants (405,967 SF)

7 tenants (304,521 SF)

18 tenants (123,365 SF)

20 tenants (168,697 SF)

1 tenant (26,336 SF)

6 tenants (56,343 SF)

3 tenants (43,260 SF)

1 tenant (18,800 SF)

Polaris | 14 points

Westerville | 13 points

Hilliard | 3 points

12 tenants (159,676 SF)

13 tenants (53,981 SF)

2 tenants (16,208 SF)

5 tenants (43,973 SF)

2 tenants (5,183 SF)

0 tenants (0 SF)

6 tenants (120,425 SF)

4 tenants (16,515 SF)

1 tenant (4,702 SF)

New Albany | 1 points

North Delaware | 0 points

Gahanna/Airport | 0 points

2 tenants (2,789 SF)

2 tenants (1,860 SF)

3 tenants (11,623 SF)

0 tenants (0 SF)

1 tenant (2,000 SF)

1 tenant (6,537 SF)

2 tenants (7,880 SF)

Southeast | -3 points

East | -3 points

Powell | -4 points

1 tenant (39,985 SF)

2 tenants (13,000 SF)

0 tenants (0 SF)

3 tenants (42,231 SF)

4 tenants (50,710 SF)

2 tenants (17,411 SF)

Worthington | -5 points

12 12

Represents the number of tenants that moved within the submarket

North Central | -7 points

Arlington/Grandview | -8 points

12 tenants (60,105 SF)

3 tenants (14,160 SF)

7 tenants (35,058 SF)

9 tenants (76,573 SF)

1 tenant (3,211 SF)

8 tenants (60,419 SF)

10 tenants (363,638 SF)

5 tenants (69,358 SF)

8 tenants (84,933 SF)

2020 2020 REPORT TENANT REPORT

North Delaware

Powell Polaris

Worthington

Dublin

Westerville New Albany Arlington/ Grandview

North Central

Easton

Gahanna/ Airport

Hilliard

CBD

East

Southeast

Migration Key

5 points 4 points 3 points 2 points 1 point -1 point -2 points -3 points -4 points -5 points

Red represents positive movement, while blue represents negative movement.

50,000 SF and up .............................. 20,000 SF to 49,999 SF...................... 10,000 SF to 19,999 SF....................... 5,000 SF to 9,999 SF.......................... 0 SF to 4,999 SF................................. 0 SF to -4,999 SF................................ -5,000 SF to -9,999 SF....................... -10,000 SF to -19,999 SF.................... -20,000 SF to -49,999 SF................... -50,000 SF and below ........................

Arrows represent trending tenant movement 2020TENANT TENANTREPORT REPORT 13 13 2020

DEEP DIVE: TENANT MIGRATION TRENDS From 2019 Of the 22 tenants that left space

in Dublin, of them leased space elsewhere in Dublin

75%

tenants from outside the market leased space in 10 distinct Columbus submarkets, demonstrating the overall strength of the region

of tenants that left space in Polaris, Westerville or Worthington leased space in one of the other two submarkets

Of new leases with TI allowances, the average allowance was $22.75 PSF

Of new leases with the highest lease terms (8 years and

50%

up), over of these tenants were in the healthcare or financial services industry

Nearly half the tenants that signed from outside the market were in the technology or healthcare industry 50% of the tenants that leased 40,000 SF or more are from outside of the market

90%

of tenants that leased 20,000 SF or more did so in the CBD, Polaris, Dublin or Easton submarkets

45%

of technology tenants that leased space did so in Dublin

The average term length for leases 30,000 SF and up was over

2020 TENANT REPORT

9 years

2020 prediction

WHAT TO LOOK FOR IN 2020

Predictions in Tenant Behavior

TI Allowance:

Lease Term:

We predict that the average TI allowance for 2020 could reach $30 PSF.

We predict that the average lease term length for 2020 will reach 7 years.

Over 25% of current tenants in the market are law firms or technology companies - two industry types with the highest average TI allowances.

Nearly 50% of current tenants in the market are looking in New Albany, Arlington/Grandview or the CBD – three submarkets with the highest average term lengths.

Leases in new developments get average TI allowances of $40 PSF and average term lengths of 8-9 years – there is over 850,000 SF of Class A development under construction and over 1 million SF proposed.

Leased SF:

Industry:

We predict that the office market will have a slower start than last year, but can anticipate accelerated activity in the second and third quarters.

We predict that finance, technology and healthcare companies will have a major effect on the office market in 2020.

In January 2019 there were 142 tenants in the market representing 2.6 million SF, and by July there were 197 tenants representing 3.2 million SF.

These industry types account for nearly half of tenants currently in the market, and over 725,000 SF collectively.

There are currently around 117 tenants in the market representing 1.6 million SF, but with increased investor interest and skyrocketing development, we predict that by July, there will be around 150 tenants in the market representing about 2.5 million SF.

Of the largest tenants in the market (looking for 25,000 SF or more), 50% of them are in these industries.

Migration Prediction 1:

We predict that tenants will move between the CBD and Arlington/Grandview in 2020.

3/4

of the tenants planning to leave Arlington/Grandview are looking for space in the CBD.

1/3

of the tenants planning to leave the CBD are looking for space in Arlington/Grandview.

Migration Prediction 2:

We predict that the largest leases will occur in the CBD, Dublin and Worthington.

tenants representing 285,000 total SF are searching in the CBD.

tenant representing 100,000 SF is searching in Dublin.

tenant representing 50,000 SF is searching in Worthington.

2020 TENANT REPORT

WORKPLACE TRENDS IN 2020

2020 prediction

Regardless of a company’s size, industry or age, there is one thing every tenant is concerned about – talent. The past few years have been very strong economically for Columbus and the rest of the U.S., with rising GDP and overall output. Job growth has also been consistent, and now the economy is considered at “full employment.” The Columbus unemployment rate is at a record low of 3.5 percent. With such a tight labor market, it is more important than ever to entice top talent. Companies are being forced to get creative in not only attracting the best employees, but also retaining them. Check out what workplace trends we expect to see in the new year as the competition for topnotch talent intensifies.

Flexible Floor Plans For the past few years, there has been an ongoing debate about whether an open floor plan or one with more private spaces is the better way to go. Each has pros, cons and staunch supporters. This clear divide can make it difficult for companies to determine which path to take in the design of their space. The answer to this challenge, and what we foresee as a major trend in 2020, is flexibility. There are merits to both open, collaborative areas as well as closed, private spaces. Not all employees thrive in the same conditions, so it is important to provide choice and flexibility in spaces throughout the office. This not only enables employees to work the way they want to, but also helps cast a wider net of talent to your firm.

Top-Notch Amenities

Perhaps the most pervasive office trend in recent years, impressive amenities continue to be one of the main ways tenants try to attract employees. In the past, features like cafés and fitness centers have been utilized in office properties to make a statement. However, a growing number of companies are now implementing more unique elements, such as draft beer taps, coffee bars and game rooms to appeal to a new generation of employees. We anticipate more creative amenities such as these to pop up throughout office spaces in 2020, as employers must set themselves apart from their competition to entice top talent.

Home-y Touches

Bringing a residential feel to office space – coined “resimercial” design – is another workplace trend that is expected to become more popular in the new year. Tenants are incorporating inviting touches and residential-style furniture throughout their spaces to create a more comfortable environment for their employees. For example, historically closed-off work spaces like conference rooms and kitchen areas are being replaced with more open and welcoming common spaces. Not only do these kinds of areas have a warmer feel to them, but they also encourage employees to move around the space in a more natural way, much like they would in their own home.

Sources: Colliers Research, Tenfold, M&A Architects 16

2020 REPORT

“

Collaboration spaces are becoming more popular in common areas these days, and landlords need to listen to this and respond. This will even go outside the building to the property grounds, where people can hold meetings in the nice weather away from the confinement of their office space. - Jaimie Jesi Property Manager, Colliers | Columbus

2020 TENANT REPORT

TENANT INSIGHTS

With Rachel Friedman | Founder & CEO, TENFOLD

Rachel Friedman is the founder and CEO of TENFOLD, an award-winning strategy and creative firm in Columbus, and has nearly 30 years of professional experience. TENFOLD recently signed a 4,549-square-foot lease at Hubbard Park Place, with enough room to double their staff.

Rachel Friedman, Founder & CEO

Why did you decide to leave the urban core of the CBD for the Short North area? Rachel: We’re a creative firm. At our core we’re all very interested in design and the arts. So, I think there’s something really intriguing about being in the Arts District of our city. At first, I thought for the size of our company I didn’t necessarily see the premium. When I came to this property, though, there was so much more value here that it was really worth it to me. I was able to extend so many of the amazing amenities in this property to my team, and that really becomes quite a perk for my team in terms of attracting and retaining the best talent that we possibly can. We were always focused on staying in the downtown area. We love the energy here and it’s also very centralized. Other than being in the Short North, what drew you specifically to Hubbard Park Place? Rachel: In our design studio, we have a really unique architectural feature that enables our studio to literally be opened up to a courtyard. We have this opportunity to have a work inside/work outside feel to our space. The property also has underground parking, and they were able to accommodate our entire team plus some extra. The property is primarily residential, so in the mornings the residents leave and we come in, and in the evenings we leave and the residents come in. So that was one other benefit. I could go on! There’s an amazing rooftop terrace that has a pool. We enjoy that. There’s also a fitness room that’s very nice for our team and that’s, again, another benefit that I can extend to them by being here. What made you lease nearly double the square feet that you previously had? Rachel: We had just grown so much. I think we moved into the Rich Street office with four people, and within less than three years we were twelve. And we knew we were adding more. We just extended an offer to our sixteenth team member, so we knew we were going to continue to see growth and we were just out of space. And because we had grown so much we really sort of encroached on some of the open area within our space that we were using for collaboration and for client presentations and we really like to present in an open area that feels more hospitality-oriented as opposed to a conference room. Is that why you designed your new space in the way that you did? Rachel: Yes. Moving here to Hubbard, we have one suite that’s dedicated to collaboration, so that’s the space where we meet as a team, review our project work and meet and present to our clients. Then our design studio is really more of the main space where we have a huge kitchen, great studio space for heads-down work and some little nooks and crannies for people to be a little bit more mobile. Then of course as I talked about, the extension of our studio out to this really lovely courtyard.

18 2020 TENANT REPORT

So, you’d say you’re definitely a fan of an open concept office layout? Rachel: Yes. No private offices. From working with and designing other offices, what trends are you noticing with design and amenities? Do you notice that a lot of other companies are wanting open space, or are you seeing a shift back to private spaces? Rachel: We see both. I think what’s really important and what I’m seeing most in spaces today is choice and flexibility. So, you have spaces where you can have more heads-down and quieter work, and then you have spaces where you can go to interact and to engage with others, whether that’s common areas like celebrated spaces, hospitality, and kitchen areas to designated conference spaces and huddle rooms and things of that nature. I think it’s important that people have both because both are really needed depending on what you have to work on that day.

2020 prediction

So, do you see this flexibility continuing to be a trend into 2020?

Rachel: I think organizations are still trying to figure out what works for them. I do think what will continue as a trend is that break rooms that were four walls and a door are a dying breed. Those were the spaces that were put in the back in a windowless room. Those are now spaces that have really opened up, they have much more of a celebrated feel to them and much more of a hospitality feel to them – those are spaces where we want people to go and work. This convergence of being less tethered to the desk and being able to choose where you want to work for a period of time is something I think will continue. And technology evolves and allows us to be more mobile and more untethered. Where do you see your company in five years? Rachel: What’s interesting is, we signed a seven-year lease here and a five-year lease at our last space. That can be really scary for small businesses scaling quickly– it’s really hard for us to predict what we’re going to look like in five years. But, I think what’s great is when you invest in leasing in a property that not only holds its value but increases in value. Not that you want to break out of your lease, that’s definitely not the intent, but it gives you some flexibility if that should happen to be a need that you have where the landlord’s actually motivated in some cases to have you break your lease and get out so they can get a higher rent rate. But our intent is to stay here, we absolutely love it.

TENFOLD office, tenfoldbrand.com

2020 TENANT REPORT

TENANT INSIGHTS

With Joelle Brock | Co-Founder & CEO, Leading EDJE

Joelle Brock is the co-founder and CEO of Leading EDJE, a fast-growing IT and custom software creator in Dublin, and has over 30 years of professional experience. Leading EDJE recently signed a 8,761-squarefoot lease at Bridge Park, nearly doubling their office footprint.

Joelle Brock, Co-Founder & CEO

You recently signed at Bridge Park. What made you want to stay in Dublin? Joelle: The city did a lot of good things to keep us in Dublin. They wanted to have a woman-owned technology firm stay in Dublin. We looked at multiple options – we knew we wanted new, Class A space. We did a heat map from our team members as well as our clients and we knew we needed to stay in the Northern corridor. It was a close split, but Dublin edged out. We’re really glad we made that decision, and we’ve turned all the anxiety feelings about making the right decision into all positive energy moving forward. Other than location, what drew you specifically to Bridge Park? Joelle: Energy. Absolute energy. I feel as though Bridge Park is the urban feel in the perfect suburb of Columbus, and I think that’s going to draw a lot of technology talent to the area. We are collectively working with the City of Dublin to make it the technology hub of the Midwest. We’re doing everything in our power to draw technical talent and technical companies to put the city on the map. What made you lease nearly double the square feet that you previously had? Joelle: A couple of reasons. We chose for growth, and we’re going to grow differently than we have in years past. We’ve got clients that are all over the country and instead of our people going to them to do the work, we’re going to bring the work to our hub so that we can have our culture be driving our solutions. We just want to do more work in our space. It’s great for our clients to be able to get their subject matter experts out of their location, so they can concentrate on not the day-to-day, but really working more on disruptive thinking and helping their business by thinking outside the box. Or, moreover, thinking with no box. Why did you design your new space the way that you did? Joelle: It was a collaborative effort. We have a very open concept, meaning everything is architectural glass. We’ve got a large conference room predominantly for client experience and then a smaller conference room as well. We have team huddles and wellness rooms that are completely isolated for people’s privacy. The vast majority of our training center is garage-door concept where we can get our entire team huddled around there for our quarterly business reviews if needed. You can see through offices from one window to the next.

20 20

2020 2020 TENANT TENANT REPORT REPORT

Why do you think Dublin is becoming a hub for successful tech companies? Joelle: My theory is that, as the millennials are maturing and wanting to settle down, I would like to think that we’d want them in Dublin. As they’re aging out, we’d love for them to be able to feel there’s a place they can go and get that Short North feel, but still get some room with a yard and a picket fence. Where do you see company in five years?

your

Joelle: We see ourselves in Bridge Park, or at least in Dublin. My vision is to take over multiple floors of our building, which would be great. Our growth has been a steady 20 percent year-over-year, and I think we’re going to see a boost in that because we’re going to be growing differently. It’s not going to be more of the same. And we’re really excited about that. I think we’re going to see more growth in our space, as well as more growth with work outside of the Columbus geography, but with us doing the delivery in Dublin.

2020 TENANT REPORT

WHAT’S TO COME?

“

Dublin seems to have a lot of strong momentum, especially with the recent Quantum Health news and the next upcoming phase of speculative development at Bridge Park.

2020 prediction

With around 117 tenants currently in the market looking for a collective 1.6 million+ square feet of space, there will undoubtedly be continued activity and growing demand in the market. Of the largest tenants searching for space throughout Columbus, half of them are focused in on the CBD and Dublin submarkets. In the upcoming year, we expect new Class A space and walkability to continue to be at the top of tenants’ wish lists. With the CBD leading construction activity and Dublin adding on to Bridge Park, these two submarkets will see growing interest and positive absorption throughout 2020. Incorporating flexible floor plans with open and private spaces, first-class amenities and residential touches will be an upcoming workplace trend for office tenants in the new year to attract and retain the best talent. Finance, technology and healthcare firms will drive activity, and TI allowances and lease terms are expected to increase due to an influx of construction and new Class A product. With record activity and demand throughout Central Ohio, the office market can look forward to another strong year in 2020.

- Andrew Jameson Senior Executive VP and Principal, Colliers | Columbus

2020 TENANT REPORT

ABOUT THE AUTHORS Reach out to our research team with any questions, or for the inside scoop! Hannah Williams: +1 614 410 5179 or hannah.williams@colliers.com

Hannah Williams CPRC Senior Research Coordinator A native of Columbus, Hannah grew up in Clintonville before attending Ohio State. As an ambassador for all things Columbus, she is passionate about being part of the city’s growth and development. Hannah provides research support for the Brokerage, Property Management, Facility Services and Construction teams, as well as the Director of Marketing & Research at Colliers | Columbus.

Briana Sfero CPMC Senior Marketing Specialist Briana is a graduate of The Ohio State University with a passion for communicating the Columbus story with a fresh take that truly spotlights her adopted hometown. She currently provides support for the Office Services Group, as well as the Director of Marketing & Research at Colliers | Columbus.

Richard B. Schuen CCIM SIOR CEO | Principal Rich Schuen, Colliers | Columbus founder and CEO, came to Columbus, Ohio over 30 years ago with a dream and a passion for real estate. Turning what he loves into his livelihood truly allows him to ‘live the dream’ and share it with his team members and clients.

2020 TENANT REPORT

“

What makes Columbus unique is its welcoming, open-arms approach and its ease of doing business. Not only is the city the state capital with a diverse economy, but it also boasts extraordinary healthcare and 50+ colleges and universities, leading to its growth in Gen Z’ers. This continues to set up the region for opportunity and success in the future. - Richard Schuen CEO, Colliers | Columbus

2020 TENANT REPORT

Contact our research team today: COLLIERS INTERNATIONAL GREATER COLUMBUS REGION Two Miranova Place | Suite 900 Columbus, OH 43215 +1 614 410 5179 @ColliersCbus