Q3 Columbus Medical Office Sales and Leasing Trends

Central Ohio’s medical leasing market took 2 steps forward and 2 steps back during the 3^rd quarter. Major space absorptions near Mount Carmel East and Mount Carmel West Campuses (Nearly 30,000 square feet in total) were offset by new vacancy at the new Delaware Health Center (20,000 SF), Nike Drive (9,000 SF) and Ackerman Road (7,300 SF). Overall there is slightly more vacant medical space than the previous quarter. Smaller practices continue to take space as their practices needs dictate. This includes expansion into more efficient space as well as subleasing excess space.

Despite the increase in vacancy, rents actually increased but the increase was caused more by the high rate at Delaware Health Center (20,000 SF of newly available space at 16.95 per square foot) than conventional supply and demand. Vacancy is 14.25% while the average NNN rental rate is $13.25 per SF.

The Central Ohio medical sales market is becoming quite active, mirroring the national market as investors are aggressively seeking to purchase medical buildings as investments and practices are taking advantage of low interest rates to purchase buildings for their own use.

This market study was prepared by Paul Heiserman of Colliers International | Greater Columbus Region, Healthcare Services Group in conjunction with local research and marketing staff. To recieve a full detailed report, or to discuss a customized report, please email Paul at paul.heiserman@colliers.com or call 614-437-4497.