HEARTLAND SNAPSHOT, MAY 2005

Columbus, Ohio, Retail Market

Retailers and developers are currently looking inside the outerbelt for locations and development opportunities in Columbus, Ohio, according to Greg Hrabcek, vice president of Worthington, Ohio-based Group One Realty, and Kevin James, senior associate with Columbus-based Columbus Commercial Realty/Cushman & Wakefield Alliance. Tenants such as Wal-Mart and Target have covered the suburban market and now look to the urban core for new locations. This, in turn, has developers searching for large tracts of ground for potential developments near the central business district (CBD).

With more than 3 million square feet combined, Georgetown’s Easton and Glimcher Realty Trust’s Polaris are still the most dominant retail developments in Columbus. Easton has plans for its next phase of approximately 500,000 square feet of big box development along Morse Road. Polaris is seeing continued growth with several small neighborhood centers, such as Capella Centre I and II, as well as Continental Real Estate Companies’ Parkway Centre. This development will feature a Dick’s Sporting Goods, Bed Bath & Beyond and Rave Theaters. These developments are contributing to the new home growth and even office growth as the population is attracted to these areas.

“Typically, all of the region’s new development has been, and continues to be, in the northeast and northwest regions of Columbus, with a few exceptions,” Hrabcek says. Two of those exceptions are the Grove City and Pickerington suburbs, which have seen between 250,000 square feet and 400,000 square feet of new development, respectively, within the previous 12 months. New development continues in the suburbs of New Albany, Powell, Dublin and Hilliard, extending around the north arc from east to west.

Columbus is fortunate to have several quality developers headquartered here. Casto, Continental Real Estate Companies, Glimcher Realty Trust and Skilken lead the way with between $50 million to $200 million worth of development projects in Columbus per year. “Several other companies are establishing a name for themselves with quality developments, such as Northstar Realty, K2 Group and Metropolitan Partners,” James says.

In the last 12 months, Kroger has opened two new concepts: Marketplace and Fresh Fare. There has also been entries by Dick’s Sporting Goods, through the Galyans acquisition, Fresh Market and Whole Foods, whose first store is set to open later this year.

New restaurants in Columbus include Qdoba Mexican Grill, Cheeburger Cheeburger and Cheeseburger in Paradise.

According to Xcelligent, the vacancy rate for the retail sector is 11 percent. “Our market totals more than 32 million square feet with new development of approximately 1.1 million square feet expected in 2005,” Hrabcek says.

“The hottest submarkets will continue to be Easton and Polaris,” James says. Some markets to watch are Dublin, New Albany and Grove City. New developments under construction in each will add to the vibrancy of these suburbs. Another area to watch is the CBD. Several retailers and developers have announced proposed plans for new developments in this area as the demand to service the growing core population by retailers increases.

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