The Columbus Dispatch

Not wearing mask is a choice that hurts others and economy

Office vacancies at decade high in oversuppli­ed central Ohio market

- Jim Weiker

Rep. Jena Powell, R-arcanum, claimed that her bill in the Ohio House of Representa­tives supports individual freedom by allowing Ohioans to make the choice of whether to wear a mask.

Mike Kindt, of Asheville, correctly responded that those choosing not to wear masks are endangerin­g the health of others.

But uncontroll­ed spread of COVID-19 is what leads to the emergence of more lethal variants, one of which may someday evade all current vaccines, returning us to square one. As long as COVID rages, our economy will never fully reopen, and life can’t return to normal (our ultimate goal, right?).

Therefore, those choosing not to wear a mask are endangerin­g not just their neighbors, but the health and economic security of the whole nation. Masks = jobs!

Cindy Brooman, Delaware

Dozens of Columbus region companies have shed office space since COVID arrived a year ago, raising concerns about a glut of empty offices coming out of the pandemic.

More than 19% of central Ohio’s offices are empty, not including offices temporaril­y vacated by the pandemic, according to the commercial real estate firm CBRE.

“That’s the highest rate in 10 years, the result of several things from COVID,” said Michael Copella, managing director of CBRE’S Columbus office.

“There was less leasing activity in 2020, so less space absorbed, and constructi­on did not stop, meaning new space was delivered.”

For subscriber­s:what to expect when Columbus companies bring workers back to the office after COVID-19

Return to work: We’re probably going back to the office in a few months. Should everyone be vaccinated?

Offices subleasing out unused space

In addition, a growing number of office users have subleased space they no longer need, adding discounted of

fice space to the market that competes with new or already empty space.

According to the commercial real estate company Colliers, more than 90 central Ohio offices were available for sublease at the end of 2020, totaling 1.2 million square feet, more than double the amount available a year earlier.

“The rise in sublease space on the market is a predominan­t trend we’ve seen this year,” said Brett Cisler, executive vice president with the Columbus Colliers’ office. “Three fourths of current sublease spaces came on the market after COVID hit.”

Offices available for sublease can be found throughout central Ohio, much of it in small spaces.

But a handful of large offices also have emptied during the pandemic and are being subleased, including thousands of square feet of suburban offices formerly occupied by Alliance Data, Ascena and Zulily, which have either reduced their staffs or sent them home to work over the past year.

Alliance Data, for example, is subleasing more than 200,000 square feet of its offices on Schrock Road in Westervill­e and on East Broad Street in Whitehall after determinin­g that its staff is working well remotely.

“As soon as we could demonstrat­e that 95% of our associates could work successful­ly from home, we broke down barriers and started rethinking our real estate.” said Alliance Vice President of Human Resources Brandy Sullivan.

In addition, some of Columbus’ bestknown companies such as Nationwide and Nisource, parent of Columbia Gas, are subleasing some Downtown space they vacated in the pandemic.

“Before, there was no space in Arena District, none in the Short North,” said Copella, with CBRE. “Now we’re seeing some spaces in the more desirable areas of town.”

Supply grows while demand shrinks, possibly dropping rents

While it’s still a small fraction of all central Ohio office space, sublease space has softened demand and prices for new or otherwise empty space.

“Landlords are expected to slightly decrease asking rents to compete with the influx of sublease space, which could drive overall rates down in the short term,” according to a Colliers yearend report on central Ohio office space.

Some companies hunting for office space before the pandemic have backed off, adding to concerns about demand. The health technology company Olive, for example, has decided to stay in its East Main Street offices after concluding that most of its staff can work remotely.

Leasing activity in general plummeted in central Ohio during the pandemic. According to Colliers, in the second and third quarters of 2020, 41 office leases were signed in central Ohio for a total of 194,000 square feet of space. During the same period in 2019, 97 leases were signed for almost 1.1 million square feet.

Also contributi­ng to concerns about a glut of space are several new office buildings on the rise, or planned, in central Ohio, few of which have tenants in hand. New offices are going up in the Peninsula and Gravity projects in Franklinto­n, in Hamilton Quarter in

New Albany, Confluence Village in the Arena District, Bridge Park in Dublin, Grandview Crossing in Grandview Heights, and several more are planned in Worthingto­n and Downtown.

Brighter skies ahead?

A few new offices have landed big tenants. The engineerin­g firm Burgess & Niple leased 45,000 square feet of new space at the Peninsula in Franklinto­n, Bank of America leased 60,000 square feet at the new Pointe at Polaris office building, and Hagerty Insurance Agency leased 41,000 square feet in a new Bridge Park building.

Such leases fuel confidence that demand for space – especially for new offices – will continue to climb once companies and workers feel safe to return.

Cisler, with Colliers, said he’s already noticed an uptick in interest. He said 124 office users are now looking for space in central Ohio, up from a low of 98 last summer.

“There has been a positive change over the past few months,” he said. jweiker@dispatch.com @Jimweiker

 ?? KYLE ROBERTSON/COLUMBUS DISPATCH ?? A few lights are on in office buildings in downtown Columbus on March 12.
KYLE ROBERTSON/COLUMBUS DISPATCH A few lights are on in office buildings in downtown Columbus on March 12.

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