1. Vacancy Rates Over Completions and Absorptions
6.0
7.0
8.0
9.0
10.0
11.0
12.0
13.0
14.0
15.0
16.0
3Q
08
4Q
08
1Q
09
2Q
09
3Q
09
4Q
09
1Q
10
2Q
10
3Q
10
4Q
10
1Q
11
Q2
11
Q3
11
Q4
11
Q1
12
Q2
12
Q3
12
Q4
12
(2,000,000)
(1,500,000)
(1,000,000)
(500,000)
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
Completions Absorptions Total Market Vacancy Rate
Industrial Trends Report
Greater Columbus Region
www.colliers.com/columbus
Optimism Outweighs Uncertainty
Industrial Market Overview
The Columbus industrial market recorded its seventh consecutive quarter of strong positive absorption, as
more than 1,445,132 square feet were absorbed this quarter, and 4,938,885 were absorbed for the year.
This is a positive sign as 2011 recorded 3,497,841 square feet of positive absorption, nearly 2 million shy
of this year’s mark. Two notable construction projects were completed during the past quarter, and an
additional 924,103 square feet of construction broke ground. Restoration Hardware at 100 Enterprise
Parkway completed its 418,655 square foot warehouse expansion, and a 30,000 square foot building at
952-960 North Freeway Drive was completed where Mattress Firm will occupy 25,000 square feet of flex
space. Significant leases were signed by Great Lakes at 2160 McGraw Road for 185,000 square feet, and
Rogue Fitness at 3950 Venture Court for 168,850 square feet. Cabot Properties purchased a 508,760
square foot warehouse distribution center at 2727 London-Groveport Road from Trident Capital Group for
$13.6 million.
Forecasts and Reflection
• While 2012 will be remembered as the most promising in more than five years since the financial crisis,
much of the market’s success can be attributed to portfolio sale offerings and the trading of assets due to
attractive pricing, prime financing and lending opportunities.
• Investment and owner/user sales continue to be a big storyline going into 2013, as fourth quarter showed
no signs of a slowdown. Mobis Parts America purchased a 377,283 square foot warehouse distribution
center at 5900 Opus Drive for $12.2 million.
• Exeter Property Group expanded its portfolio at Rickenbacker as DCT Industrial Trust trimmed its
investment holdings. Exeter now owns more than 5 million square feet of industrial product in Central
Ohio after purchasing a 388,264 square foot warehouse distribution center at 4000 Creekside Parkway
for $12.3 million, and a 432,455 square foot distribution center at 6500 Port Road for $12.5 million.
Rental rates
Asking rental rates have
remained stable over the course
of 2012. A slight uptick in
warehouse/distribution rates,
and modest decreases in
general industrial rates can be
attributed to falling vacancy
rates. There are now just 25
spaces of 20,000 square feet
or greater available in R&D/
Flex throughout Greater
Columbus, causing R&D/Flex
rental rates to significantly
increase over the past year as
leasing remains strong. Overall,
concessions continue to
decrease as larger distribution
centers are in short supply.
market indicators
Weighted Average REntal Rates
Rates for the Major Product Types
Q4
2012*
Q1
2013**
Vacancy
Net absorption
construction
Rental Rates —
*Actual change from previous quarter
**Projected change from previous quarter
Q4 2012 | Industrial
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
Q3
08
Q4
08
Q1
09
Q2
09
Q3
09
Q4
09
Q1
10
Q2
10
Q3
10
Q4
10
Q1
11
Q2
11
Q3
11
Q4
11
Q1
12
Q2
12
Q3
12
Q4
12
General Industrial R&D/Flex Warehouse/Dist.

2. Regional industrial economics
The Federal Reserve Bank of Cleveland reports at least
once a quarter in the Federal Reserve’s Beige Book
about the economic activity of the fourth district, which
includes the Columbus Metropolitan Statistical Area
(MSA). At the beginning of November, the Beige Book
reported that economic activity had grown at a modest
pace. Manufacturers reported that production output
rose slightly during the past six weeks, while new
orders weakened. Inventories remained manageable
as competition (volume and pricing) from offshore
producers has intensified. Capacity utilization is
slightly below normal levels.
Many reports on freight volume indicated that the
volume is returning to normal trends after a slow
second and third quarter. The industries driving
transport demand are automotive, construction, and
shale gas. Lower than expected harvests have
negatively impacted revenues, although many
companies believe they met their growth objectives for
2012 despite high diesel prices, and maintainence
costs. The Beige Book from November 2012 reported
that economic activity continued to expand since the
September 2012 report, but not as rapidly as
anticipated. The outlook by manufacturers was mixed,
as shale gas activity continued at a robust pace, and
coal production fell between 10 and 50 percent below
prior-year levels. To date, 375 permits have been
issued in Ohio for drilling horizontal shale gas wells.
Nonresidential builders described current business
conditions as improving and better when compared to
a year ago, and are satisifed with their backlogs going
into 2013. Projects receiving the strongest inquiries
are in the industrial manufacturing and energy,
education, and healthcare industries. Demand for
commercial loans and refinancings continue as
investors and businesses take advantage of low
interest rates that appear to be disappearing sooner
than later.
Employment
The Bureau of Labor Statistics reported manufacturing
employment of 61,700 employees in December, which
was a decrease of nearly 400 employees from the past
quarter. This was an overall decrease of 1,200
employees for the year. Year over year manufacturing
is down by 7 percent. Trade, transportation and utilities
employment grew by 7,000 employees in December
since September 2012, a year-to-date increase of
12,000 employees, with a 5 percent employment
upturn. Mining, logging and construction decreased by
900 employees in December since September 2012,
an overall 2,500 employee increase since January
2012, and is up 3.6 percent year over year.
The Columbus industrial market consists
of 10 suburban submarkets and the
Central Business District. The total
inventory for the region is 211 million
square feet of space.
Market Activity
sales activity
Property Address sales date sale price size SF Grantor Grantee Price / Sf type submarket
2727 London-Groveport Road 12/1/2012 $13,600,000 508,760 Trident Capital Group Cabot Properties $27.00 Warehouse Southeast
5900 Opus Drive 12/3/2012 $12,261,000 377,283 KBS Real Estate Mobis Parts America $32.50 Warehouse Southeast
1600 Eastgate Parkway 11/2/2012 $7,150,000 308,000 Investors Warranty Eastgate Parkway $23.21 Warehouse East
3300 Lockbourne Road 11/30/2012 $2,410,000 301,103 Garrison 3300 Lockbourne LLC B&B Lockbourne LLC $7.86 Warehouse Southeast
5255 Sinclair Road 11/26/2012 $2,825,000 83,055 CM MEDIA INC 5255 Sinclair Road LLC $34.01 Flex/R&D North
5795 Green Pointe Drive 10/29/2012 $1,800,000 60,800 Dennis Enterprises Mason Management Group $29.60 Flex/R&D Southeast
2499 McGraw Road 11/2/2012 $1,100,000 27,810 Executive Land Holdings LLC Celadon Realty LLC $39.55 Warehouse Southeast
3830 Lacon Road 10/26/2012 $700,000 25,546 Mason Management Group Dennis Enterprises $27.40 Warehouse West
3882 Agler Road 11/19/2012 $1,150,000 25,140 I Buck LLC Gep Properties Too LLC $45.74 Light Industrial East
4080 Business Park Drive 11/1/2012 $1,400,000 16,000 4080 Investment Co. Ltd. Star Leasing Company $75.48 Light Industrial West
Union
County
Delaware
County
Licking
County
North
East
CBD
West
Southwest Southeast
Fairfield
County
Pickaway County
Madison
County
Lease activity
Property Address Lease Date Lease sf Lessee Asking price (NNN) type Submarket
2160 McGraw Road 12/10/2012 185,000 Great Lakes $1.50 Warehouse-Distribution Southeast
3950 Venture Court 10/17/2012 168,850 Rogue Fitness $2.50 Warehouse-Distribution West
915 Taylor Road 11/9/2012 84,000 Spinnaker Mgmt/Comfy Couch Co $2.75 Warehouse Distribution East
1635 Watkins Road 12/10/2012 76,710 INS Electronics $1.95 Warehouse-Distribution Southeast
320 Outerbelt Street 11/2/2012 70,000 Rightway Solutions/DNS Distribution $2.50 Warehouse Distribution East
2120 Creekside Parkway 11/1/2012 64,992 Exel $3.25 Warehouse-Distribution Southeast
2250 International Street 11/26/2012 51,840 Arlington Contact Lens Service $3.00 Warehouse-Distribution West
p. 2 | Colliers International
research & forecast report | Q4 2012 | industrial | Greater Columbus Region

3. Construction
Exxcel Project Management partnership
started construction on a 478,053 square
foot distribution center at the CenterPoint
Business Park north of Rickenbacker
International Airport in Obetz. This is the
first major speculative industrial space in
Central Ohio in years, due largely to the
changing demand for bulk warehouse/
distribution space, which recorded 1.1
million square feet of net absorption last
quarter.
update Market Comparisons
Industrial market
Net Absorption Construction Asking Rental Rates
Submarket Total SF Vacant SF Vacancy % Current Quarter Year-to-date Current Completions WH/Dist R&D/Flex
CBD 5,335,716 410,270 7.7% 68,482 (10,167) - $6.63
East 20,442,133 1,764,513 8.6% 1,467,111 1,738,292 - $2.60 $5.29
Fairfield 6,114,387 64,500 1.1% (35,500) 234,920 - $4.00
Licking 19,112,312 1,346,046 7.0% - 109,000 50,000 - $2.76
Madison 8,576,748 - 0.0% - - 450,000 418,655
North 16,814,944 1,272,891 7.6% 85,376 (149,936) 30,000 $4.13 $4.98
North Delaware 8,796,109 562,566 6.4% (26,621) 45,028 - $3.21 $7.00
Pickaway 3,602,146 84,250 2.3% - (22,750) -
Southeast 64,139,813 7,228,149 11.3% (66,751) 2,577,012 824,103 - $2.57 $3.53
SOUTHWEST 17,512,083 1,015,708 5.8% (12,743) 333,007 - $2.98 $3.40
Union 6,299,770 342,116 5.4% (153,536) (65,351) - $3.11 $6.44
West 34,873,110 2,426,640 7.0% 129,314 127,330 - $2.34 $3.96
TOTALS 211,821,516 16,517,649 7.8% 1,455,132 4,938,885 924,103 448,655 $2.62 $4.82
Net Absorption Construction Asking Rental Rates
Property Type Total SF Vacant SF Vacancy % Current Quarter Year-to-date Current Completions By Product Type
r&D/Flex 20,188,473 2,533,132 12.5% 233,210 498,845 45,800 30,000 $4.82
General industrial 70,015,457 3,374,942 4.8% 909,725 1,364,277 70,000 - $2.82
Warehouse/
distribution 121,617,586
10,609,575 8.7% 312,197 3,075,763 755,250 418,655 $2.62
Totals 211,821,516 16,517,649 7.8% 1,455,132 4,938,885 924,103 448,655 $2.99
quarterly comparison and totals
Net Absorption Construction Asking Rental Rates
Quarter, year Total SF Vacant SF Vacancy % Current Quarter Year-to-date Current Completions ($)
Q3, 2012 211,027,622 19,227,318 9.1 757,254 3,461,253 1,259,655 - $2.87
Q2, 2012 213,192,579 21,359,885 10 1,430,866 2,703,999 425,000 900,000 $2.95
Q1, 2012 212,418,016 22,790,751 10.7 1,273,133 1,273,133 898,000 - $3.04
research & forecast report | Q4 2012 | Industrial | Greater Columbus Region
Colliers International | p. 3

4. Central Business District
The Central Business District (CBD) recorded 68,482
square feet of positive absorption in the fourth quarter,
largely attributed to a 54,531 square foot owner/user
sale at 433 State Street, and a 13,951 square foot flex
space sale at 892-896 Scott Street. Absorption in the
CBD overall for 2012 has improved, as the area is seeing
its lowest vacancy rate (7.7 percent) in years. Absorption
as a whole has been strong for seven consecutive
quarters in the CBD, with just six spaces of 10,000
square feet vacant, two of which have more than 100,000
square feet available.
East
The submarkets comprising eastern Columbus are East
and Licking County. The Licking submarket absorption
has remained flat, and vacancy is relatively unchanged
from the previous quarter. Southgate Corp. continues
construction on its 50,000 square foot bulk warehouse
at 94 Integrity in Licking County, with the abililty to
expand to 150,000 square feet. In the East, vacancy
rates have lowered dramatically to around 9 percent,
after lingering in the 20 percent range for over two
years. Two major sales are responsible for the shift of
momentum in the East. Trident Capital Group purchased
a 1,240,991 square foot warehouse distribution center at
6200 E. Broad Street for $2.3 million. The building is
scheduled to be demolished for eventual redevelopment.
Niagara Bottling purchased the former 308,000 square
foot Amerigraph printing plant in Gahanna for $7.2
million. Spinnaker Management and Comfy Couch leased
84,000 square feet of space at 915 Taylor Road. Rightway
Solutions and DNS Distribution leased a total of 70,000
square feet at 320 Outerbelt Street.
North
The submarkets comprising northern Columbus are
North and North Delaware. The North submarket
recorded 85,376 square feet of positive absorption as
Hoshizaki leased 14,550 square feet of flex space at
7461 Worthington Galena Road. The North Delaware
submarket recorded 26,621 square feet of negative
absorption after 113,265 square feet was vacated at
1020 Pittsburgh Drive. Construction has completed on
the 30,000 square foot Mattress Firm building at 952-
960 N. Freeway Drive.
Southeast
The Southeast submarket stumbled in the fourth quarter
after driving the market for most of 2012. Pepsi vacated
705,000 square feet at 3800 Groveport Road causing
the vacancy rate to to slip to 11.3 percent. Great Lakes,
185,000 square foot lease at 2160 McGraw Road is the
highlight of the quarter. While 66,751 square feet of
negative absorption occured in the fourth quarter, the
prior three quarters were strong enough to keep year to
date absorption positive at 2,577,012 square feet and be
remembered as the best performing submarket of 2012.
Construction is improving as Exxcel began construction
on a 478,053 square foot speculative distribution center.
Construction continues on the 305,250 square foot
FedEx SmartPost distribution facility.
Southwest
The Southwest submarket experienced relatively
insignificant negative absorption of 12,743 sqaure feet.
Minor leases of 10,000 and 40,000 square feet occurred
at 3940 Gantz Road, and 27 Jenkins Road respectively.
Standard Register downsized by 63,041 square feet of
space at 3515 Urbancrest Industrial Drive.
West
The submarkets on the west side of Franklin County are
West, Madison and Union. The West submarket recorded
positive absorption of 129,314 square feet, an additional
100,000 square feet from the previous quarter, with a
astonishing 150 basis point drop in vacancy to 7 percent.
A 168,500 square foot lease signed by Rogue Fitness at
3950 Venture Court, along with 155,688 square feet of
other significant signings were offset by Jacobson’s
Warehouse’s 173,903 square foot move out at 2642
Fisher Road. Madison showed no leasing activity but
construction continues on expanding the Target Corp.
distribution center by 425,000 square feet. The 418,655
square foot Restoration Hardware expansion at 1000
Enterprise Parkway has been completed.
Market intel
Market Activity Volume is the sum of the absolute value
of each absorption change in the market. It tells us a
little more about what exactly happened to the market
behind the absorption number. The Market Activity
Volume was 4,725,008 square feet. This is well above
the average (3,463,631 square feet) for fourth quarters
in the past three years. There are 56 buildings with
vacant contiguous space equal to or greater than
100,000 square feet left in the Columbus market. 10
were built since 2000 and 9 of those are warehouse/
distribution.
Tenants in the Market
The types of tenant seen most frequently are 40,000-
70,000 square foot light warehouse and Flex/R&D
users. Bulk warehouse and distribution users seeking
more than 200,000 square feet are beginning to subside,
but will continue to drive the market. Auto suppliers,
technology companies (e-commerce distributors,
internet based retailers and third party logistic firms) are
also active in the region. The largest leases of 2012
were Jacobson Warehouse leasing 455,667 square feet
at 2450 Spiegel Drive; Innotrac leasing 434,120 square
feet at 6440 Port Road; and Restoration Hardware
leasing 418,655 square feet at 100 Enterprise Parkway.
Leslie Hobbs
Director of Marketing | Ohio
Two Miranova Place
Suite # 900
Columbus, Ohio 43215
tel +1 614 410 5640
Jonathan Schuen
Research Analyst
Two Miranova Place
Suite # 900
Columbus, Ohio 43215
tel +1 614 437 4495
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Age, Wall Street Journal, Bureau of Labor Statistics,
Bureau of Economic Analysis, Gallup and the Cleveland
Federal Reserve.
www.colliers.com/columbus
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Two Miranova Place
Suite # 900
Columbus, Ohio 43215
tel +1 614 410 5612
research & forecast report | Q4 2012 | industrial | Greater Columbus Region