Development activity is surging across Columbus

1. Office Outlook
Columbus | Q3 2016

2. Office space inventory rate in the Short North (s.f.)
Source: JLL Research
Downtown Class A occupancy (%)
Source: JLL Research
Current large-scale suburban office projects
Source: JLL Research
Developers are pushing the mixed-use pulse in Short North
The Short North district of Columbus has been presented with several recent
mixed-use proposals that will effectively expand the neighborhood. Both Pizzuti
and Kaufman Development have responded to demand with two separate 10-
story mixed-use buildings, which would deliver more than 110,000 square feet of
Class A space. Several other planned offices are in the Short North pipeline,
such as mixed-use buildings from Borror Properties and Wood Schiff, primarily
due to the growing popularity of working in the old arts district. The Short North is
expected to see a surge of activity over the next few years, with an estimated
360,000 square feet of office space in response to this growing lifestyle.
Redevelopments are answering downtown demand for Class A space
As the downtown market for Class A office space remains tight, a number of
developers have decided to respond with redevelopments and renovations of
older buildings. The former Columbia Gas building was renovated to attract high
profile tenants such as law firms BakerHostetler and Reminger Company, which
relocated from Class B buildings. The redevelopment of the Buggyworks building
in the Arena District has also received attention from notable Columbus firms
including Cameron Mitchell and ODW Logistics. These redevelopments and
renovations have allowed for developers to leverage existing buildings to provide
unique, attractive Class A space downtown.
Investors are looking to the suburbs for growth
Activity beyond the central business district has also been growing due to the
urbanization of several suburban areas. Areas like Easton have successfully
established microcosms for businesses. Now, two massive suburban speculative
projects are expected to bring more than 1.0 million square feet of office space to
these mixed-use districts. The sprawling Bridge Park development in Dublin is
expecting to welcome tenants into its first office building this fall. Additionally, the
Hamilton Quarter development in New Albany is projected to begin construction
in the coming months. These substantial projects are expected to develop the
next suburban business districts.
Development activity is surging across Columbus
2,257
Office Insight
Columbus | Q3 2016
28,524,196
Total inventory (s.f.)
15,858
Q2 2016 net absorption (s.f.)
$19.18
Direct average asking rent
737,000
Total under construction (s.f.)
12.0%
Total vacancy
252,073
YTD net absorption (s.f.)
2.8%
12-month rent growth
46.0%
Total preleased
89% 90% 89% 88%
91%
93% 94%
96%
94%
92% 92%
80%
85%
90%
95%
100%
2014 2015 2016
400,000
600,000
800,000
1,000,000
1,200,000
2012 2013 2014 2015 2016 YE 2017 YE 2018 YE
Project Submarket s.f. Type Est. completion
Hamilton Quarter New Albany 500,000 Speculative Q4 2018
Alliance Data Easton 565,000 BTS Q4 2017 (Phase 3)
Bridge Park Dublin 388,000 Speculative Q3 2018
Pointe at Polaris Polaris 200,000 Speculative Q2 2018

3. Current conditions – submarket Historical leasing activity (s.f.)
Source: JLL Research Source: JLL Research
Total net absorption (s.f.)
Source: JLL Research
Total vacancy rate (%)
Source: JLL Research
Direct average asking rent ($ p.s.f.)
Source: JLL Research
606,006
70,210
-552,609
-290,883
609,907
-242,764
654,150
433,023
943,802
252,073
-1,000,000
0
1,000,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD 2016
$16.75
$16.09
$15.63
$17.24 $17.38 $17.43
$17.96 $17.91
$18.31
$19.18
$15.50
$17.50
$19.50
2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD 2016
15.8% 15.6%
17.8%
18.7%
17.6%
18.9%
17.0%
15.8%
12.9%
12.0%
10.0%
15.0%
20.0%
2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD 2016
Landlordleverage
Tenantleverage
Peaking
market
Falling
market
Bottoming
market
Rising
marketNortheast, Northwest
North
3,000,000
2,600,000
1,900,000
2,500,000
1,700,000
0
2,000,000
4,000,000
2012 2013 2014 2015 YTD 2016
CBD
JLL | Columbus | Office Outlook | Q3 2016

4. Office Statistics
Columbus | Q3 2016
JLL | Columbus | Office Outlook | Q3 2016
Class Inventory (s.f.)
Total net
absorption
(s.f.)
YTD total net
absorption
(s.f.)
YTD total net
absorption (%
of stock)
Direct
vacancy (%)
Total vacancy
(%)
Average direct
asking rent ($
p.s.f.)
YTD
completions
(s.f.)
Under
construction
(s.f.)
Arena District/Pen West Totals 2,127,794 9,555 6,133 0.3% 7.6% 7.7% $25.69 0 115,000
Brewery District/River South Totals 872,157 249 18,468 2.1% 8.8% 8.8% $21.56 0 0
Capitol Square Totals 4,497,686 -18,066 -43,824 -1.0% 13.1% 13.2% $20.20 0 0
Short North/Warehouse District Totals 890,779 0 9,073 1.0% 3.7% 3.7% $20.25 0 61,000
Other Totals 423,547 0 -700 -0.2% 8.4% 8.4% $19.96 0 0
CBD Totals 8,811,963 -8,262 -10,850 -0.1% 10.2% 10.3% $21.30 0 176,000
Northeast
Airport/I-670 Totals 575,962 10,211 -4,267 -0.7% 8.1% 8.1% $16.87 0 0
East I-70 Corridor Totals 134,096 0 -6,226 -4.6% 50.6% 53.6% $12.45 0 0
Easton Totals 2,092,966 0 116,808 5.6% 7.2% 7.4% $23.70 326,000 240,000
Gahanna Totals 668,827 17,617 20,934 3.1% 9.4% 9.4% $18.66 0 0
New Albany Totals 967,911 -7,725 14,034 1.4% 13.0% 13.0% $17.87 0 47,000
NE Columbus/Westerville Totals 1,576,850 -875 16,879 1.1% 16.3% 16.8% $16.57 0 0
North
Campus/Clintonville Totals 372,480 0 7,383 2.0% 0.0% 0.0% $0.00 0 0
Polaris Totals 2,281,538 -11,806 60,042 2.6% 8.8% 10.5% $20.79 114,400 120,000
Worthington Totals 3,014,778 28,210 67,935 2.3% 14.0% 14.0% $16.67 90,000 0
Northwest
Grandview/Arlington Totals 919,850 -74 -11,677 -1.3% 11.6% 11.6% $19.55 0 0
Bethel Totals 473,736 0 3,500 0.7% 9.3% 9.3% $16.38 0 0
Dublin Totals 5,692,822 -1,104 -1,963 0.0% 14.9% 15.5% $19.02 0 154,000
Hillard/West Totals 940,417 -10,334 -20,459 -2.2% 10.6% 11.5% $17.14 0 0
Suburbs Totals 19,712,233 24,120 262,923 1.3% 12.3% 12.8% $18.40 530,400 561,000
Columbus Totals 28,524,196 15,858 252,073 0.9% 11.7% 12.0% $19.18 530,400 737,000
Arena District/Pen West A 1,500,762 9,555 7,249 0.5% 9.1% 9.2% $25.89 0 115,000
Brewery District/River South A 243,547 0 6,029 2.5% 7.7% 7.7% $23.98 0 0
Capitol Square A 1,057,010 3,663 31,617 3.0% 5.5% 5.7% $25.87 0 0
Short North/Warehouse District A 60,000 0 0 0.0% 0.0% 0.0% $0.00 0 61,000
Other A 0 0 0 0.0% 0.0% 0.0% $0.00 0 0
CBD A 2,861,319 13,218 44,895 1.6% 7.5% 7.6% $25.72 0 176,000
Northeast
Airport/I-670 A 124,922 0 0 0.0% 0.0% 0.0% $0.00 0 0
East I-70 Corridor A 0 0 0 0.0% 0.0% 0.0% $0.00 0 0
Easton A 2,007,872 0 116,808 5.8% 7.5% 7.7% $23.70 326,000 240,000
Gahanna A 0 0 0 0.0% 0.0% 0.0% $0.00 0 0
New Albany A 817,866 -7,725 14,034 1.7% 7.1% 7.1% $20.08 0 47,000
NE Columbus/Westerville A 155,500 0 0 0.0% 0.0% 0.0% $17.91 0 0
North
Campus/Clintonville A 0 0 0 0.0% 0.0% 0.0% $0.00 0 0
Polaris A 1,642,358 -8,244 30,600 1.9% 8.5% 10.5% $20.91 114,400 120,000
Worthington A 250,169 8,435 18,180 7.3% 9.2% 9.2% $20.39 90,000 0
Northwest
Grandview/Arlington A 278,053 0 11,200 4.0% 4.4% 4.4% $21.85 0 0
Bethel A 0 0 0 0.0% 0.0% 0.0% $0.00 0 0
Dublin A 3,901,421 0 6,241 0.2% 12.8% 13.6% $19.72 0 154,000
Hillard/West A 394,323 -8,138 -12,986 -3.3% 1.2% 3.3% $22.50 0 0
Suburbs A 9,572,484 -15,672 184,077 1.9% 9.3% 10.1% $20.67 530,400 561,000
Columbus A 12,433,803 -2,454 228,972 1.8% 8.9% 9.5% $21.65 530,400 737,000

5. Office Statistics
Columbus | Q3 2016
JLL | Columbus | Office Outlook | Q3 2016
Class Inventory (s.f.)
Total net
absorption
(s.f.)
YTD total net
absorption
(s.f.)
YTD total net
absorption (%
of stock)
Direct
vacancy (%)
Total vacancy
(%)
Average direct
asking rent ($
p.s.f.)
YTD
completions
(s.f.)
Under
construction
(s.f.)
Arena District/Pen West B 627,032 0 -1,116 -0.2% 4.0% 4.0% $24.60 0 0
Brewery District/River South B 628,610 249 12,439 2.0% 9.2% 9.2% $20.78 0 0
Capitol Square B 3,440,676 -21,729 -75,441 -2.2% 15.4% 15.5% $19.58 0 0
Short North/Warehouse District B 830,779 0 9,073 1.1% 4.0% 4.0% $20.25 0 0
Other B 423,547 0 -700 -0.2% 8.4% 8.4% $19.96 0 0
CBD B 5,950,644 -21,480 -55,745 -0.9% 11.5% 11.5% $19.91 0 0
Northeast
Airport/I-670 B 451,040 10,211 -4,267 -0.9% 10.4% 10.4% $16.87 0 0
East I-70 Corridor B 134,096 0 -6,226 -4.6% 50.6% 53.6% $12.45 0 0
Easton B 85,094 0 0 0.0% 0.0% 0.0% $0.00 0 0
Gahanna B 668,827 17,617 20,934 3.1% 9.4% 9.4% $18.66 0 0
New Albany B 150,045 0 0 0.0% 45.0% 45.0% $15.97 0 0
NE Columbus/Westerville B 1,421,350 -875 16,879 1.2% 18.1% 18.6% $16.57 0 0
North
Campus/Clintonville B 372,480 0 7,383 2.0% 0.0% 0.0% $0.00 0 0
Polaris B 639,180 -3,562 29,442 4.6% 9.5% 10.6% $20.51 0 0
Worthington B 2,764,609 19,775 49,755 1.8% 14.4% 14.4% $16.46 0 0
Northwest
Grandview/Arlington B 641,797 -74 -22,877 -3.6% 14.8% 14.8% $19.26 0 0
Bethel B 473,736 0 3,500 0.7% 9.3% 9.3% $16.38 0 0
Dublin B 1,791,401 -1,104 -8,204 -0.5% 19.5% 19.5% $18.03 0 0
Hillard/West B 546,094 -2,196 -7,473 -1.4% 17.4% 17.4% $16.87 0 0
Suburbs B 10,139,749 39,792 78,846 0.8% 15.2% 15.4% $17.09 0 0
Columbus B 16,090,393 18,312 23,101 0.1% 13.8% 14.0% $17.96 0 0

6. Office Employment Update
Columbus | Q3 2016
4.9%U.S. unemployment
1.7%U.S. 12-month job growth
4.0%Columbus unemployment
2.1%Columbus 12-month job growth
4.8%Ohio unemployment
1.5%Ohio 12-month job growth
Industry employment stratification: Columbus
Employment vs. unemployment rate: Columbus
Job growth (12-month change): United States vs. Columbus
Job growth/loss by sector (12-month change): Columbus
Industrial employment trends (12-month change, 000s): Columbus
JLL | Columbus | Office Outlook | Q3 2016
0%
3%
6%
9%
12%
780,000
840,000
900,000
960,000
1,020,000
1,080,000
2006 2008 2010 2012 2014 2016
Nonfarm employment
Unemployment
-4.0%
-2.0%
0.0%
2.0%
4.0%
2010 2011 2012 2013 2014 2015 2016
Columbus United States
-900
-400
600
700
1,900
1,900
2,300
4,000
4,000
7,900
Trade, Transportation & Utilities
Information
Manufacturing
Financial Activities
Mining, Logging & Construction
Other Services
Government
Professional & Business Services
Educational & Health Services
Leisure & Hospitality
Trade, Transportation
& Utilities,
195,700 , 18%
Professional &
Business Services,
184,500 , 17%
Government,
160,200 , 15%
Educational &
Health Services,
153,800 , 14%
Leisure & Hospitality,
114,300 , 11%
Financial Activities,
81,100 , 8%
Manufacturing,
72,800 , 7%
Other Services,
43,500 , 4%
Mining, Logging &
Construction,
39,500 , 4%
Information,
16,600 , 2%
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
2010 2011 2012 2013 2014 2015 2016
Professional & Business Services
Information
Government
Financial Activities

7. Office Submarket Map
Notable Leases | Q3 2016
JLL | Columbus | Office Outlook | Q3 2016
4500 E Broad Street
New lease: 50,572 s.f.
Tenant: Wasserstrom Company
Officescape III
Renewal: 24,661 s.f.
Tenant: Ohio Health
200 Civic Center Drive
New lease: 17,550 s.f.
Tenant: Disability Rights Ohio
The Preserve II
Renewal: 12,145 s.f.
Tenant: Ohio Health
One Columbus Center
New lease: 11,500 s.f.
Tenant: Weston Hurd, LLP

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Great Lakes Region
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