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Industrial Investment in Columbus

Columbus industrial just had its moment. Intel's $20B fab announcement turned this into a semiconductor supply chain play overnight. We're seeing warehouse deals that wouldn't have existed three years ago. Class A distribution space in the right corridors is trading at sub-6% caps. The usual suspects are still here - Honda's supply chain, DSW's distribution, Amazon's last-mile push. But now you've got chip manufacturers scouting sites within 50 miles of New Albany. Vacancy's sitting around 3.2% market-wide, which means if you've got modern space with 32-foot clears and decent truck courts, you're not sitting long. The question isn't whether to buy industrial here. It's whether you can still find deals that pencil.

Market Context

Cap Rate Range

5.8% to 7.4% depending on location and vintage, with Intel-adjacent sites compressing toward the low end

Current Vacancy

3.2% market-wide, down from 4.1% pre-Intel announcement, with sub-2% in prime logistics corridors

Rent Trend

Up 18% since 2024, moderating but still climbing at 6-8% annually in target submarkets

Absorption

2.8M SF absorbed in trailing twelve months, 40% above historical average

Price Per Unit Trend

$85-$140 per SF for quality space, with semiconductor-spec buildings commanding premiums

Transaction Volume

$890M in trailing twelve months, up 65% from 2024 levels

Submarket Analysis

I-270 West (Intel Corridor)

5.8% to 6.4% cap

Vacancy

1.8%

Avg Rent (1BR)

$9.50-$12.75/SF NNN

Hottest submarket. New construction delivering at $11+ NNN. Existing owners aren't selling unless forced.

OM Tip

Emphasize proximity to Intel fab site, power capacity specs, and any clean room potential

I-70 East Corridor

6.2% to 7.0% cap

Vacancy

2.9%

Avg Rent (1BR)

$7.25-$9.80/SF NNN

Steady logistics demand, Honda supply chain anchor. Less frothy than Intel corridor but solid fundamentals.

OM Tip

Highlight truck access to I-70/I-270 interchange and established automotive tenant base

Southeast (Rickenbacker)

6.0% to 6.8% cap

Vacancy

2.1%

Avg Rent (1BR)

$8.50-$11.25/SF NNN

Airport cargo hub driving demand. E-commerce and third-party logistics expanding. Limited available land constraining supply.

OM Tip

Play up airport proximity and cargo handling capabilities. Include any customs bonded space details.

I-71 South

6.8% to 7.4% cap

Vacancy

4.2%

Avg Rent (1BR)

$6.75-$8.90/SF NNN

More price-sensitive but stable. Good for value-add plays and smaller distribution users.

OM Tip

Focus on below-market rents and upside potential through capital improvements

Northwest Flex

6.5% to 7.2% cap

Vacancy

3.8%

Avg Rent (1BR)

$8.20-$10.50/SF NNN

Mixed-use industrial, some office component. Benefits from Dublin corporate presence and OSU research spillover.

OM Tip

Highlight flex capabilities and professional workforce access for R&D users

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What Your OM Needs to Address

Clear Height Specifications

Buyers are obsessing over this metric. Sub-28 feet needs a story. 32+ feet is table stakes for institutional deals.

Data to Include

Exact clear heights by section, any expansion capability, and racking weight limits

Power Infrastructure

Intel effect means everyone's asking about electrical capacity. Even if your tenant doesn't need it, the next buyer might.

Data to Include

Current electrical service size, transformer capacity, any three-phase availability, expansion potential

Truck Court Specifications

Columbus buyers know bad truck courts kill deals. Don't make them guess about turning radii or trailer storage.

Data to Include

Court depth measurements, turning radius specs, trailer parking count, dock door-to-dock door spacing

Transportation Access Analysis

Intel corridor has everyone thinking about drive times to major interchanges. Map it out for them.

Data to Include

Drive times to I-270, I-70, I-71 interchanges during peak hours, plus Rickenbacker airport access

Expansion Rights and Adjacent Land

Growth stories sell better in tight markets. Show them the expansion path even if they say they don't need it.

Data to Include

Adjacent parcel availability, expansion rights in lease, zoning for surrounding parcels

Tenant Quality and Lease Structure

Industrial investors want to see lease terms, renewal probability, and tenant creditworthiness upfront.

Data to Include

Tenant financial statements, lease expiration schedule, renewal option terms, rent escalation clauses

Investment Outlook

Short Term

Supply constraints continue through 2027. New construction can't keep pace with Intel-driven demand. Cap rate compression likely continues in prime corridors, though pace moderates. Rent growth stays elevated but may cool from current levels. Best opportunities are off-market deals and value-add plays in secondary corridors.

Medium Term

Intel fab ramps production 2028-2029, bringing full supply chain demand online. Secondary semiconductor manufacturers likely announce Columbus area projects. Transportation infrastructure upgrades begin affecting submarket dynamics. Some cap rate stabilization expected as new supply finally hits market, but vacancy stays low through this cycle.

Long Term

Columbus establishes itself as Midwest semiconductor hub. Industrial market matures with multiple large users and established supply chains. Geographic expansion of hot submarkets as prime corridors fill out. Potential for specialized facility types like clean manufacturing and advanced materials handling. Market likely maintains premium to regional competitors long-term.

Buyer Profile

Institutional investors dominating $15M+ deals in prime corridors. Private equity groups active in value-add opportunities. Local high-net-worth investors still competitive in sub-$10M range. Semiconductor supply chain companies increasingly looking to own rather than lease critical facilities. International investors starting to notice Columbus industrial story.

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