Regional Standout for Retail Performance, Columbus Attracts More Out-of-State Investors
- Diverse hiring bolsters household count and local spending. Backed by a local economy that has recaptured 80 percent of the jobs lost during the initial months of the health crisis, Columbus’
retail sector continues to enjoy the lowest vacancy rate among Midwest markets.
- Major retail demand drivers re-established. Businesses surrounding Ohio State University, the metro’s largest employer, are poised to receive a jolt in sales this fall as students and staff
return to campus.
- Since the fourth quarter of 2020, sales velocity has returned to a pre-pandemic pace, supporting a 45 percent rise in deal flow over the past year ended in June.
- Across both retail segments, Columbus offered buyers some of the highest first-year returns nationally over the past 12 months.
- Shopping center trades accounted for one-fourth of recent deal flow.
- Investors with experience owning multiple property types are pursuing mixed-use buildings throughout the city of Columbus, where 8 percent-plus cap rates are available.
* Forecast; ** Through 2Q
Sources: CoStar Group, Inc.; Real Capital Analytics