QUARTERLY REPORTS

Demand continued to slow as numbers trended to pre-pandemic numbers. Hesitation from tenants largely stems from macroeconomic concerns and has been the main factor in reduced leasing velocity. In turn, there will be significantly less new construction starts in 2024 and the market will focus on more built-to-suit projects. This is a major change when compared to the previous quarter when 12 percent of product was BTS. Now 70 percent of current projects are BTS making up 7.8 million square feet of construction. Intel accounts for three million square feet of BTS construction.

There were still large leases signed in the Greater Columbus area, despite the decreased activity. The largest lease signed was a sublease for over 750,000 square feet. Available sublease space continues to be over one percent of total available space. We expect sublease space to increase with the mentioned economic improbability. With the largest sublease signed this quarter, it shows tenants are interested in subleases that can offer more favorable terms than direct deals.