Vogt Strategic Insights Presentation of Findings June 8, 2017

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 1 Executive Summary

➢ Significant growth and overall housing strength in the Short North submarket.

➢ A historically challenged environment in the East Side submarket but one that is revitalizing with momentum in the past couple of years.

➢ The Hilltop housing market has generally remained stagnant over the past 15 to 20 years. The declining population base since year 2000, the flat median household incomes over the past six years and the general low-quality housing stock are hindering revitalization in this neighborhood.

➢ The story of Linden is one that has been in decline. The population base and median household incomes are lower than they were in 2000. A positive sign is that median home selling prices have increased by 95% over the past five years, but the overall median selling price is still very low at less than $50,000.

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 2 Neighborhood Overview

Of the four submarkets considered in the market scan, the Linden submarket is demographically the largest while the largest geographic submarket is the Hilltop market. Density within the East Side and Linden submarkets are similar at approximately 5,700 people per square mile. The Short North submarket has the highest density at 8,983 people per square mile.

Square People/ 2016 Population Miles Square Mile

Eastside 19,995 3.52 5,680

Hilltop 26,787 7.59 3,529

Linden 36,592 6.40 5,718

Short North 14,462 1.61 8,983

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 3 Linden and Hilltop Submarkets The Linden submarket is bound by E. Cook Road to the north, Westerville Road, Joyce Avenue and the Conrail railroad to the east, the Conrail railroad to the south and Interstate 71 and the Conrail railroad to the west. The submarket primarily consists of the North Linden and South Linden neighborhoods.

The Hilltop submarket is bound by Interstate 70 to the north and east, Sullivant Avenue to the south and Interstate 270 to the west. The submarket consists of the Central Hilltop, North Hilltop, Valleyview, Valleyview Heights, Georgian Heights, Westgate and the Hilltop 2, 3 and 4 neighborhoods.

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 4 East Side and Short North Submarkets The East Side submarket is bound by Interstate 670 to the north, Alum Creek to the east, Interstate 70 to the south and Interstate 71 to the west. The submarket consists of the following neighborhoods: Eastgate, Franklin Park, King-Lincoln-Bronzeville, Mount Vernon, Olde Town East, South of Main and Woodland Park. In recent years, much of the new development and revitalization has occurred in the western portion of the East Side submarket.

The Shorth North submarket is bound by King Avenue and E. 7th Avenue to the north, the CSX railroad to the east, Interstate 670 to the south and State Route 315 to the west. The submarket consists of the Dennison Place, Harrison West, Victorian Village, Italian Village and a portion of the Weiland Park neighborhoods. The most significant development activity is occurring along (and within proximity) of High Street and in the eastern portion of Italian Village.

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 5 Neighborhood and Citywide Demographic Context

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 6 Submarket Population Change, 2000 - 2016

The Short North is the only submarket that increased in population (22.5%) from 2000 to 2016. All other submarkets declined in population from 2000 to 2010, with a slight rebound through year 2016, but still lag behind year 2000 levels. In comparison, the City of Columbus increased in population by 18.7% from 2000 to 2016.

50,000 -5.6% 45,000

40,000 -8.5% 35,000 -8.3% 30,000 25,000 +22.5% 20,000 15,000 10,000 5,000 0 Hilltop East Side Linden Short North

2000 (Census) 2010 (Census) 2016 (Estimated)

Source: U.S. Census (2000 and 2010); ESRI, VSI

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 7 Population by Race (2000, 2015) The racial composition in the Hilltop and Short North submarkets are the most similar. Compared to the City of Columbus, the Hilltop and Short North submarkets have a higher share of White Alone individuals. In the East Side submarket, there was a significant decline in those identifying as Black or African American Alone from 2000 to 2015. There was a corresponding increase in those identifying as White Alone in this submarket.

100% 8% 11% 9% 9% 5% 9% 5% 9% 6% 9% 90% 16% 9% 80% 24% 17% 21% 28% 44% 70% 46% 60% 65% 82% 50% 40% 77% 82% 68% 74% 70% 30% 62% 50% 20% 45% 10% 26% 13% 0% 2000 2015 2000 2015 2000 2015 2000 2015 2000 2015 Columbus Hilltop East Side Linden Short North White Alone Black or African American Alone Other

Source: U.S. Census (2010) and the 2015 ACS; ESRI, VSI

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 8 Population by Age, 2016

The Short North submarket is characterized as having a younger age composition than the other submarkets and the City of Columbus as a whole. Nearly two-thirds of the Short North’s population is under age 35. Of note is the slightly older age composition in the East Side and Linden submarkets, with a quarter of the population being age 55 and older.

100% 14% 90% 21% 21% 24% 25% 80% 20% 70% 25% 26% 60% 25% 26% 50% 40% 30% 66% 54% 53% 51% 49% 20% 10% 0% Columbus Hilltop East Side Linden Short North Under 35 35 to 54 55+

Source: U.S. Census (2010); ESRI, VSI

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 9 In-Migration in Past Year (% of Total Population, 2010 and 2015) The East Side and Linden submarkets reported slightly higher shares of the total population moving in the past year from 2010 to 2015. The Short North submarket has the highest total share of the population moving in the past year at 30% in year 2015. Among all submarkets, the 35 and under cohort represents the largest share of those moving in the past year. There is limited mobility among the 55 and older age cohorts. Note the significant decline in younger age cohorts moving in the Hilltop submarket from 2010 to 2015.

40% 2% 35% 5% 1% 30% 1% 2% 25% 2% 3% 2% 6% 2% 20% 4% 7% 1% 4% 6% 1% 15% 1% 5% 30% 3% 27% 3% 10% 21% 18% 16% 14% 16% 13% 5% 10% 12% 0% 2010 2015 2010 2015 2010 2015 2010 2015 2010 2015 Columbus Hilltop East Side Linden Short North Under 35 35 to 54 55 and Older

Source: U.S. Census (2010) and 2015 ACS; ESRI, VSI

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 10 Household Size, 2000 & 2016

Household sizes in the City of Columbus and three of the four submarkets declined slightly from 2000 to 2016. Household sizes in the Hilltop submarket increased from 2000 to 2016. The Short North submarket has the smallest average household size at 1.71 (year 2016), while the Hilltop submarket has the largest average household size at 2.73 (year 2016).

3.00 2.80 2.60 2.40 2.20 2.00 1.80 1.60 1.40 1.20 1.00 Columbus Hilltop East Side Linden Short North 2000 (Census) 2016 (Estimated)

Source: U.S. Census (2000); ESRI, VSI

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 11 Median Household Income Trends, 2000 - 2016 From 2000 to 2016, median household incomes in the Hilltop and Linden submarkets remained relatively flat with the Linden submarket reporting a decline of 2.7% over the past 16 years. The City of Columbus and the East Side reported increases of 17.3% and 28.1%, respectively. The strongest household income growth occurred in the Short North submarket, at a growth of 65.1% from 2000 to 2016. The Short North submarket has by far the highest median household income of $50,500 for year 2016. + 65.1% $60,000 + 17.3%

$50,000 + 1.0% -2.7% $40,000 + 28.1%

$30,000

$20,000

$10,000

$0 Columbus Hilltop East Side Linden Short North 2000 (Census) 2010 (Census) 2016 (Estimated) Source: U.S. Census (2000 and 2010); ESRI, VSI

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 12 Educational Attainment, 2000 & 2016 All submarkets and the City of Columbus reported declining rates of individuals without a high school diploma and increasing shares of those with a college degree. The East Side submarket reported the greatest decline in the population share age 25 and older without a high school diploma (change of 18 percentage points). The Short North submarket has the highest share of those with at least a bachelor’s degree at 69%. The Hilltop and Linden submarkets are lagging with only 13% of the population with at least a bachelor’s degree (population age 25 and older). No High School Diploma No Bachelor's Degree (With HS Diploma) College Degree (Bachelor's and or Master's)

9% 13% 15% 9% 13% 25% 29% 35% 52% 69% 59% 62% 64% 55% 67% 55% 62% 54% 33%

32% 30% 29% 27% 24% 21% 16% 12% 16% 11% 3% 2000 2016 2000 2016 2000 2016 2000 2016 2000 2016 COLUMBUS HILLTOP EAST SIDE LINDEN SHORT NORTH

Source: U.S. Census (2000); ESRI, VSI

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 13 Poverty Rates, 2015

The East Side submarket is reporting the highest poverty rate. The poverty rates in the Hilltop and Linden submarkets are similar at 36% and 33%, respectively. The Short North is reporting the lowest poverty rate at 19%, which is lower than the City of Columbus. Note the order of submarkets with the highest poverty rates have an inverse relationship to median household incomes.

45% 42% 40% 36% 35% 33%

30%

25% 21% 20% 19%

15%

10%

5%

0% Columbus Hilltop East Side Linden Short North Source: U.S. Census (2000 & 2010); American Community Survey (ACS); ESRI, VSI

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 14 Tenure Distribution, 2000 & 2016 The tenure distribution in the East Side submarket remained relatively unchanged from 2000 to 2016. This was also the case in the City of Columbus. There was a noticeable increase in the renter shares in the Hilltop and Linden submarkets from 2000 to 2016 and an increase in the owner share in the Short North submarket during this same time period. Among all submarkets, the largest share of renter households are among the 35 and under age cohort. 100% 7% 10% 9% 12% 7% 11% 9% 8% 90% 21% 20% 16% 17% 13% 80% 17% 19% 19% 23% 21% 70% 26% 26% 14% 60% 28% 25% 21% 16% 19% 50% 50% 26% 51% 40% 17% 18% 23% 24% 26% 20% 22% 30% 15% 15% 27% 7% 20% 23% 24% 6% 20% 19% 21% 12% 10% 12% 12% 11% 10% 8% 9% 9% 10% 0% 6% 3% 4% 6% 5% 2000 2016 2000 2016 2000 2016 2000 2016 2000 2016 Columbus Hilltop East Side Linden Short North Owner Under 35 Owner 35 to 54 Owner 55 and Older Renter Under 35 Renter 35 to 54 Renter 55 and Older

Source: U.S. Census (2000); ESRI, VSI

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 15 Homeowner Share Change, 2000 - 2016 The Linden submarket is reporting the highest homeowner share when compared to the City of Columbus and the other submarkets. The City of Columbus and three of the four submarkets reported gradual decline in the homeowner share from 2000 to 2016. The housing crisis that hit the nation in 2008 contributed to some of the homeowner share decline. Changing consumer preferences are also contributing to the homeowner share decline. The homeowner share in the Short North submarket increased by six percentage points from 2000 to 2010. This is largely the result of condominium development. Recent statistics, however, indicate this trend is reversing with the introduction of new multifamily rental housing. A notable trend is the significant decline in the homeowner share in the Linden submarket. The overall household income decline in the region and desirability of product are contributing factors to the declining homeowner shares in this submarket. 80%

70%

60% 62%

50% 53% 49% 51% 47% 47% 48% 40% 44% 42% 30% 31% 30% 28% 20% 26% 24% 22% 10%

0% Columbus Hilltop East Side Linden Short North 2000 2010 2016

Source: U.S. Census (2010); ESRI, VSI

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 16 Crime Statistics, 2012 Compared to the national average (100), total crime risk in the City of Columbus and all other submarkets are higher. These trends, however, are consistent with urban metro markets. Among all submarkets, personal crime risks are lower than property crime risks. The East Side submarket is reporting the highest property crime risk of 191. In general, crime risks in the Hilltop, Linden and Short North submarkets are similar.

250

200 191 165 171 168 147 151 150 143 144 141 142 118 106 107 106 103 100 100 100 100

50

0 Columbus Hilltop East Side Linden Short North National Average Total Crime Personal Crime Property Crime

Source: FBI Statistics; ESRI, VSI

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 17 Columbus Employment, 2016

Total employment in the City of Columbus increased from 2000 to 2007. Total employment declined from 2007 to 2010 during the Great Recession, but has increased every year since. The unemployment rate in the City of Columbus also increased sharply from 2008 to 2010. The unemployment rate has declined nearly every year since 2010 with a year 2016 unemployment rate of 4.1%. 1,000,000 10.0% 980,000 9.0% 960,000 8.0% 940,000 7.0% 920,000 6.0% 900,000 5.0% 880,000 4.0% 860,000 3.0% 840,000 2.0% 820,000 1.0% 800,000 0.0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Employment Unemployment rate

Source: U.S. Census Bureau

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 18 Travel Time to Employment (In Minutes), 2015

When considering travel times under 30 minutes, the Hilltop, East Side and Linden submarkets are reporting similar shares. More than 70% of workers in these submarkets commute less than 30 minutes to work. The share is higher in the Short North submarket at 83%. The East Side and Short North submarkets have more than 30% of their workforce commuting less than 15 minutes to work,

100% 3% 3% 4% 2% 4% 90% 3% 4% 3% 4% 2% 9% 80% 18% 17% 16% 17% 70% 60% 47% 43% 50% 49% 53% 51% 40% 30% 20% 30% 36% 10% 24% 22% 23% 0% Columbus Hilltop East Side Linden Short North < 15 15 to 29 30 to 44 45 to 59 60 or More Worked from Home

Source: U.S. Census (2010) and the 2015 ACS; ESRI, VSI

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 19 Mode of Transportation, 2015 All submarkets reported a lower share of workers commuting alone when compared to the City of Columbus. The Short North reported the highest share of workers who walked to work at 9%. The East Side submarket reported the highest share of those using public transportation at 12%. With the COTA route redesign, we expect the share of those using public transportation to increase, especially in the Hilltop and Linden submarkets. 100% 3% 3% 4% 2% 4% 3% 1% 3% 2% 6% 7% 90% 4% 5% 7% 9% 9% 11% 80% 16% 12% 4% 5% 70% 9% 60% 50% 40% 80% 72% 75% 72% 30% 64% 20% 10% 0% Columbus Hilltop East Side Linden Short North Drove Alone Carpooled Public Transportation Walked Taxicab, Motorcycle, Bicycle Worked at Home

Source: U.S. Census (2010); American Community Survey (ACS); ESRI, VSI

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 20 Neighborhood and Citywide Demographic Takeaways

• Consistent population growth from 2000 to 2016 (18.7%). Columbus • Employment growth from 2002 to 2007, followed by a couple years of decline, then a rebound. • Virtually no median household income change from 2010 to 2016.

• Population decline from 2000 to 2016. Hilltop • A slight increase in the household size from 2000 to 2016. • Tied with Linden as having the lowest share of individuals with a college degree.

• The lowest median household income among all submarkets ($24,199 in 2017) but strong growth rate. East Side • Highest poverty rate among all submarkets (42%). • Greatest decline in those without a high school diploma (drop of 18 percentage points from 2000 to 2016).

• The oldest demographic submarket. Linden • The only submarket to report a median household income decline from 2000 to 2016 (-2.7%). • Highest homeowner share.

• The only submarket to report consistent population growth from 2000 to 2016. Short North • Increase in the median household income of 65.1% from 2000 to 2016. • The highest renter share and highest share of individuals with a college degree.

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 21 Neighborhood and Citywide Housing Characteristics

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 22 Housing Product Type, 2015 The East Side and Short North submarkets have higher shares of multifamily housing alternatives than the City of Columbus and the Hilltop and Linden submarkets. Recent trends show that those markets with a broader offering of housing type alternatives are healthier with respect to sale prices and rents. Both the Linden and Hilltop submarkets are relatively homogenous with respect to housing product types with more than 70% of the housing stock in Hilltop and nearly 80% of the housing stock in Linden being single-family homes. 100.0% 7.2% 90.0% 22.1% 29.6% 31.9% 12.9% 80.0% 41.6% 7.6% 70.0% 12.8% 60.0% 18.1% 50.0% 22.8% 40.0% 79.9% 70.3% 30.0% 57.6% 50.0% 20.0% 35.6% 10.0% 0.0% Columbus Hilltop East Side Linden Short North Single-Family 2 -4 Units 5+ Units

Source: 2015 ACS; ESRI, VSI

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 23 Unit Size Composition, 2015

The East Side and Short North submarkets consist of smaller unit types relative to the other submarkets and the City of Columbus. Nearly a third of the rental units in the East Side and half of the units in the Short North are studios or one-bedroom units.

100% 90% 15.4% 25.1% 32.3% 80% 38.5% 48.6% 49.4% 70% 65.5% 71.5% 38.2% 60% 79.0% 81.8% 50% 48.2% 35.8% 40% 33.9% 49.8% 30% 37.5% 46.4% 20% 33.0% 26.7% 26.4% 31.8% 10% 19.6% 17.5% 15.5% 11.7% 13.1% 0% 1.5% 2.1% 2.7% 1.5% Owner Renter Owner Renter Owner Renter Owner Renter Owner Renter Columbus Hilltop East Side Linden Short North Studio/One-Br. Two-Br. Three-Br.+

Source: 2015 ACS; ESRI, VSI

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 24 Age of Housing Stock, 2015 The East Side and Short North submarkets have older housing stock than the other submarkets and the City of Columbus. This product type is typically classified as having desirable architectural features. The Linden submarket has the highest share of product type built between 1940 and 1979; this housing product did not age well and does not contain the architectural desirability found in the Short North, East Side, and to a smaller degree, the Hilltop submarkets.

100% 2% 2% 7% 5% 6% 90% 14% 7% 15% 80% 12% 70% 29% 43% 60% 60% 29% 50% 79% 40% 45% 30% 20% 45% 45% 32% 10% 12% 13% 0% Columbus Hilltop East Side Linden Short North 1939 or Earlier 1940 - 1979 1980 - 1999 2000 or Later

Source: 2015 ACS; ESRI, VSI

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 25 Rental Housing Stock Quality

In general, the Hilltop submarket has a lower quality rental housing stock than the other submarkets. The age of the rental housing stock in the Hilltop submarket, much of which has not been updated, is contributing to the low overall quality rating. While much of the housing stock in the Short North submarket is also aging, the housing stock has been better maintained over the years. The Short North submarket has the highest share of A quality rental housing stock. The introduction of new rental housing over the past decade is contributing to this high overall housing quality rating.

100% 90% 16% 32% 80% 38% 53% 70% 30% 60% 50% 51% 40% 49% 30% 30% 54% 20% 10% 18% 17% 13% 0% Hilltop East Side Linden Short North A B C

Source: VSI

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 26 Housing Vacancy Rate, 2016

The East Side submarket has the highest share of vacant housing units at nearly 28% of the housing stock. The Short North submarket has the lowest housing vacancy rate at 9.1%.

30.0% 27.7%

25.0%

20.0% 20.0%

15.9% 15.0%

10.8% 10.0% 9.1%

5.0%

0.0% Columbus Hilltop East Side Linden Short North Source: 2010 Census, ESRI, VSI

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 27 Vacancy Distribution by Product Type, 2015

The ‘other’ vacant category includes seasonal, dilapidated and foreclosed housing. The East Side submarket has the highest share of ‘other’ vacant housing. This market has the highest share of foreclosed homes and as the preceding slide illustrates, has the highest overall housing vacancy rate. The vacancy distribution in the Hilltop and Linden submarkets are similar.

100% 90% 80% 39% 38% 70% 58% 56% 67% 60% 14% 50% 29% 40% 7% 9% 30% 7% 20% 47% 35% 35% 33% 10% 26% 0% Columbus Hilltop East Side Linden Short North For Rent For-Sale Only Other

Source: 2010 Census, American Community Survey ESRI, VSI

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 28 Neighborhood and Citywide Housing Takeaways

• More than half of the housing units are single-family homes with a small share built prior to 1940. Columbus • An overall housing vacancy rate of 10.8%; only the Short North has a lower vacancy rate. • The majority of vacancies are within for-rent alternatives rather than for-sale housing and foreclosures.

• Second to the Linden submarket with respect to single-family home share (70%). Hilltop • High share of low-quality housing. • Second highest housing vacancy rate at 20.0%.

• Moderate distribution of multifamily and single-family housing alternatives. East Side • Oldest housing stock among all submarkets. • Highest housing vacancy rate at 27.2% (high share of dilapidated and foreclosed homes).

• Nearly 80% (the highest share) of units are single-family homes. Linden • High share of housing stock was built between 1940 and 1979 and is of low quality. • A housing vacancy that is lower than Linden and Hilltop but still higher than the Short North.

• Offers the highest share of multifamily rental and studio/one-bedroom units. Short North • Age of housing stock is bimodal, with a healthy supply of high-quality older and newer product. • Highest quality housing stock with the lowest vacancy rate across all submarkets.

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 29 Rental and For-Sale Housing Market

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 30 Median Asking Rent (All Homes)

Across most of the submarkets, rents remained relatively flat from 2010 to 2014 and then increased in the past several years. The City of Columbus is an anomaly as it reported a slight decline in rents from 2016 to 2017. The East Side submarket reported the second largest percentage increase in median asking rents at an increase of 25.8%. The Hilltop and Linden submarkets were relatively even, reporting increases of 16.4% and 14.6%, respectively. The Short North reported the greatest increase in median asking rents from 2010 to 2017 at an increase of 40.9%. $2,000 + 40.9% $1,800

$1,600 + 19.5% $1,565 $1,400 + 16.4% + 25.8% $1,200 + 14.6%

$1,000 $1,115 $1,111 $933 $800 $862 $898 $810 $600 $741 $714 $707

$400

$200

$0 Columbus Hilltop East Side Linden Short North 2010 2017 Source: Zillow.com, VSI

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 31 Median Rent Per Square Foot (All Homes) Across all submarkets, median rent per square foot remained relatively flat from 2010 to 2013. The median rent per square foot in the East Side submarket declined slightly from 2012 to 2013 but then increased over the next several years. The rent per square foot growth that occurred in the Hilltop and Linden submarkets over the past seven years was similar at rates of 13.1% and 14.7%, respectively. The Short North experienced significant median rent per square foot growth over the past several years with dramatic acceleration from 2015 to 2017 (26% increase in these two years alone). $1.80 + 58.4% $1.60

$1.40 $1.41 + 19.3% $1.20 + 14.7% + 13.1% $1.00 + 25.6%

$0.80 $0.87 $0.89 $0.79 $0.73 $0.60 $0.67 $0.68 $0.59 $0.61 $0.40 $0.48

$0.20

$0.00 Columbus Hilltop East Side Linden Short North 2010 2017 Source: Zillow.com, VSI

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 32 Hilltop Submarket: Hilltop Homes

Hilltop Homes is a two-phase lease-purchase scattered site project (infill parcels in the Hilltop neighborhood) that was developed under the Section 42 Low- Income Housing Tax Credit program. The Tax Credit program provides an incentive to developers as the tax liability on the project is reduced. In exchange for the economic benefit to developers and investors, the development must remain affordable to residents for a minimum of 15 years. The developer of Hilltop Homes was Homeport. The project consists of 69 single-family homes offering three and/or four bedrooms. The units are restricted to households earning at or below 30%, 50% and 60% of the Area Median Household Income (approximately $40,000 for a six-person household). This type of infill development is typical in the Hilltop and Linden submarkets. These infill developments serve as a means to reduce abandoned property and utilize vacant parcels to provide low-income households an affordable rental (and eventually homeownership) opportunity.

Address: Scattered parcels in the Hilltop neighborhood Developer: Homeport Year Built: Two phases: 2009 (I) and 2016 (II) Total Units: 69 Unit Type: 3 and 4 BRs/1.5 to 2.0 baths Unit SF: 1,000-1,600 Highest Rent: $725 Median Rent PSF: $0.45 Financing & Section 42 Tax Credit Incentives: Features: Detached garage, full basement with washer/dryer hookups, dishwasher, disposal

Source: Source: Franklin County Auditor; Vogt Strategic Insights

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 33 East Side Submarket: Poindexter Village

The former Poindexter Village Public Housing complex is being redeveloped to offer new affordable housing units targeting both general occupancy and senior households. The first phase, the 104-unit age-restricted Poindexter Place, opened in 2016 and is 100% occupied. Phases IIA (pictured below) and IIB are under construction and will offer 87 mixed-income units in each phase. A fourth phase, also consisting of 87 units, is proposed for development on the site. The Poindexter development consists of market-rate units, non-subsidized Tax Credit units, subsidized Tax Credit units and subsidized units. The majority of the units will operate with project-based subsidies allowing residents to pay 30% of their adjusted gross incomes to rent. This is the largest multifamily project in development within the East Side submarket.

Address: Mount Vernon & Champion Avenue Developer: Columbus Metropolitan Housing Authority; McCormack Baron Salazar Year Built: 2016 - 2019 Total Units: 365 Unit Type: One- through four-bedroom units Unit SF: 683 – 1,795 Highest Rent: $1,010 Highest Rent PSF: $1.05 Financing & Incentives: Section 42 Tax Credit Features: Mixed-income development with a broad mix of unit types and tenant subsidies

Source: Source: Franklin County Auditor; Vogt Strategic Insights

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 34 Linden Submarket: Duxberry Landing

Duxberry Landing is a lease-purchase scattered site project (infill parcels in the Linden neighborhood) that was developed under the Section 42 Low-Income Housing Tax Credit program. The project was developed by Homeport and is currently managed by Community Properties of Ohio. The project consists of 35 single-family homes offering four bedrooms in each home. The units are restricted to households earning at or below 50% of the Area Median Household Income (approximately $40,000 for a six-person household).

Address: Scattered parcels in the Linden neighborhood Developer: Homeport Year Built: 2013 Total Units: 35 Unit Type: Four-Br./1.5 to 2.0 baths Unit SF: 1,200 – 1,600 Rent: $730 Rent PSF: $0.46 - $0.61 Financing & Section 42 Tax Credit Incentives: Features: Homes include full basements with washer/dryer hookups, dishwasher, disposal and a microwave

Source: Source: Franklin County Auditor; Vogt Strategic Insights

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 35 Short North Submarket: The Hub The Hub is a five-story mixed-use development offering first-floor retail (15,000 square feet) and 71 rental apartment units on floors two through five. A 250-space public parking garage was developed in conjunction with The HUB that provides parking for the residential apartments and supports the surrounding retail. The kitchens offer stainless steel appliances and granite countertops. Valet dry cleaning and package delivery and acceptance services are included as amenities. Retail tenants include Snap Fitness, Paper Daisey Flower Boutique, Salon Lofts, Huntington National Bank Branch and Melt Bar & Grill. The Hub represents a recent trend in multifamily development in the Short North by incorporating commercial space into the overall project.

Address: 20 Hubbard Avenue (43215) Developer: Elford Development and Wagenbrenner Year Built: 2013 Total Units: 71 (Residential) Unit Type: One- and two-br. garden; two-br. townhouse Unit SF: 748 – 1,671 Highest Rent: $2,665 Median Rent PSF: $1.59 Financing & Incentives: 100% Tax abated; 15 years (2014 – 2028) Mixed-use with first-floor retail; stainless steel Features: appliances and granite countertops

Source: Source: Franklin County Auditor; Vogt Strategic Insights

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 36 Yearly Sales Volume (All Homes) The aggregate number of home sales increased steadily in the Hilltop submarket from 2012 to 2016. The other submarkets generally reported increasing aggregate home sales from 2012 to 2016 with different spike years in the respective submarkets. The East Side submarket reported a strong selling year (number of sales) in 2013, the Linden submarket reported its highest total sale year in 2016 and the Short North submarket peaked in 2015. It is not surprising the Linden submarket had the highest aggregate sales as this submarket is geographically and demographically larger than the other submarkets and has the highest homeowner share.

1800

1600

1400

1200

1000

800

600

400

200

0 Hilltop East Side Linden Short North 2012 2013 2014 2015 2016 2017

Source: Redfin.com, VSI

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 37 Median Sale Price (All Homes)

The greatest median sale price increase occurred in the East Side submarket with a reported increase of 292%. The significant increase is partially attributed to recovery following the Great Recession as selling price transactions returned to pre-recession levels (or close to them). Note the median selling prices report transactional data and are not necessarily representative of overall housing value within the submarket. The fact that the East Side submarket reported more than 3,300 for-sale transactions from 2012 through the first two months of 2017, however, demonstrates the rapid appreciation and desirability of the neighborhood.

$450,000 + 56.6% $400,000

$350,000 $351,196 $300,000

$250,000 + 292.0% + 23.6% $200,000 $224,245

$150,000 + 66.5% $162,292 + 95.1% $143,277 $100,000 $116,187

$50,000 $59,870 $47,466 $35,959 $41,396 $24,334 $0 Columbus Hilltop East Side Linden Short North 2012 2017

Source: Redfin.com, VSI

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 38 Median Sale Price Per Square Foot (All Homes) The East Side submarket reported the highest median sale price per square foot increase of 235%. Compared to the City of Columbus, all submarkets reported strong increases in the median sale price per square foot. The type of product being added and consumer choices (for both product type and local) are contributing to this trend. Much of the new product being added in Columbus are suburban single-family homes in excess of 2,500 square feet. Consumers will value the increased square footage at decreasing rates. In contrast, the product type being introduced in the Short North consists of smaller, more efficient floor plans with high-quality finishes and amenities. The consumer is giving more value to the quality and amenities rather than additional square footage.

$300.00 + 49.6% $250.00

$223.26 $200.00

$150.00 + 27.9% + 234.7% $149.21

$100.00 + 63.2% + 100.4% $93.93 $73.45 $74.50 $50.00 $43.16 $45.19 $26.44 $22.26 $22.55 $0.00 Columbus Hilltop East Side Linden Short North 2012 2017

Source: Redfin.com, VSI

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 39 Foreclosure Statistics The chart below details the number of home foreclosures per 10,000 homes within a month averaged over a year. There was a gradual increase in foreclosures from 1998 to 2010. Foreclosures appeared to hit the Linden and Hilltop submarkets sooner than the others leading up to the recession. The rate of foreclosures have dramatically declined in all submarkets and the City of Columbus since year 2010. Note the high foreclosure rates in the East Side submarket and the dramatic spike from 2005 to 2010. 70.0

60.0

50.0

40.0

30.0

20.0

10.0

0.0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Columbus Hilltop East Side Linden Short North Source: Zillow.com, VSI

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 40 East Side Submarket: Single-Family Home The home at 181 N. 20th Street was developed with a 15-year tax abatement. The transfer price of the home was $148,000 in 2014. This home is located in the King-Lincoln Bronzeville neighborhood in the northwestern portion of the East Side submarket. The median selling price for a home in the King-Lincoln Bronzeville neighborhood is $163,250 with an average price per square foot of $78.50 (year 2017). The majority, if not all, new construction single-family homes being developed in the East Side submarket are being developed with tax abatements. Even if the land is secured at a low price, construction costs are a limiting factor for the development of such product in the East Side submarket.

Address: 181 N. 20th Street (43203) Developer: N/A Year Built: 2013 Total Units: 1 (Single-family home) Unit Type: Three-Br./2.5-bath Unit SF: 1,488 Sale Price: $148,000 Sale Price PSF: $99.46 Sale Date: February 2, 2014 Financing & Incentives: 100% Tax abated; 15 years (2014 – 2028) Features: Two-car detached garage

Source: Source: Franklin County Auditor; Vogt Strategic Insights

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 41 Short North Submarket: Aston Row Townhomes Aston Row Townhomes features ten (10) three-story townhome condominiums. The developer, Snyder Barker, reported all 10 units were pre- sold prior to completion. Units include two bedrooms (plus den), 2.5 bathrooms, two garage spaces, 10-foot ceilings on the main level and spacious rooftop terraces. The units offer 1,797 square feet of living space. The developer recently completed construction of another 10 townhome units one block south on Starr Avenue. In proximity of Aston Row Townhomes are the Aston Place apartments, which were also developed with tax abatements and developed by Snyder Barker. Aston Row Townhomes is a relevant example of a new construction alternative contained within a neighborhood dominated by structures of late 19th and early 20th century vintage.

Address: 123 Aston Row Lane (43201) Developer: Snyder Barker Year Built: 2014 Total Units: 10 Unit Type: Two-Br./2.5-bath townhouse Unit SF: 1,797 Sale Price: $572,000 Sale Price PSF: $318.31 Sale Date: November 3, 2016 Financing & Incentives: 100% Tax abated; 15 years (2015 – 2029) Features: Two-car attached garage; rooftop terraces.

Source: Source: Franklin County Auditor; Vogt Strategic Insights

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 42 Rental and For-Sale Housing Market Takeaways

• Higher median asking rents than the Hilltop, East Side and Linden submarkets. Columbus • Smallest percentage increase in the home selling price over the past several years. • Lower foreclosure rates than the Hilltop, East Side and Linden submarkets.

• Moderate rent growth and increases in home selling prices over the past several years. Hilltop • Consistent increases in the sales volume since 2012. • Second highest rate of home foreclosures.

• Asking median rents that are higher than the Hilltop and Linden submarkets but a low rent/square foot. East Side • Substantial increase in home selling prices, especially in the past couple of years. • Spike in foreclosures from 2009 to 2011 but has declined to levels commensurate with other submarkets.

• Lowest median asking rent and lowest median home selling price. Linden • Reported the highest sales volume. • Low rent growth but high increases in home selling prices.

• Reporting the highest median asking rent ($1,565) and rental price per square foot ($1.41). Short North • The highest median selling price ($351,196) and price per square foot ($223.26). • Lowest rate of foreclosures across the submarkets and the City of Columbus.

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 43 Office Space Context

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 44 Columbus Metro Office Market

The Columbus metro office market, as defined by Reis, includes Franklin and portions of Delaware and Fairfield counties. The submarket boundaries considered in the office analysis are detailed in the map to the left. Note the submarket boundaries in the office analysis differ from the submarket boundaries considered in the residential scan analysis.

Source: Reis

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 45 Office Inventory, 2000 to 2016

Within the Columbus metro area as defined by Reis, the office inventory increased by 4.3 million square feet (19.1%) from 2000 to 2016. There was a slight decline in the total office inventory from 2008 to 2013 but has since rebounded in the past several years.

33,000,000 32,500,000 32,000,000 31,500,000 31,000,000 30,500,000 30,000,000 29,500,000 29,000,000 28,500,000 28,000,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Source: Reis

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 46 Office Inventory by Class, 2000 to 2016 The supply of class B/C office square footage has remained relatively consistent over the past 16 years fluctuating between 16.1 and 17 million square feet. The class A product, however, has experienced a gradual increase over the past 16 years reporting an increase of 4.3 million (37%) square feet from 2000 to 2016. With the gradual increase in class A product and a stagnation in class B/C product, the two office segments are near identical with respect to total square footage offering. 35,000,000

30,000,000

25,000,000

20,000,000

15,000,000

10,000,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Inventory All Inventory (Class A) Inventory (Class B/C)

Source: Reis

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 47 Inventory by Submarket, 2016

The Dublin/Hilliard submarket is reporting the highest amount of office square footage at approximately 6.6 million square feet. When considering both the Upper Downton and Lower Downtown submarkets, which are separated by Broad Street, the total square footage is approximately 10.3 million. The Worthington submarket has a notable inventory of more than 5.5 million square feet of office space.

7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0

Source: Reis

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 48 Inventory by Submarket, 2016 According to the brokerage firm CBRE, the total office square footage in downtown was 12.1 million square feet. Within suburban markets, the total square footage was approximately 23 million. Thus, the downtown submarket represents more than a third of all of the square footage offered throughout the Columbus market. Note that an estimated 49% of office square footage in the downtown market is considered class A space compared to 44% in suburban communities. 25000000

20000000

15000000

10000000

5000000

0 Class A Class B Class C Total Class A Class B Class C Total Downtown Suburban

Source: CBRE

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 49 Completions, 2000 - 2016

The majority of the completions added to the market over the past 16 years consists of class A office space. A moderate supply of office product was introduced into the market during the first part of the last decade. There was a slight decline in completions from 2003 to 2005 followed by a few years of increased activity. Very little new office product has been added to the market in the past several years.

2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Completions (All) Completions (Class A) Completions (Class B/C)

Source: Reis

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 50 Vacancy Rate, 2000 - 2016 Class A product has historically reported a lower vacancy rate than class C product. Among all asset classes, the vacancy rates increase sharply from 2000 to 2002. The significant introduction of new product during this same time period is contributing to the high vacancy rate as this product was being absorbed into the market. In year 2016, the overall office vacancy rate was reported at 17.7% with class A and class B/C product reporting vacancy rates of 15.2% and 20.1%, respectively. 25.0 23.0 21.0 19.0 17.0 15.0 13.0 11.0 9.0 7.0 5.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Vacancy (All) Vacancy (Class A) Vacancy (Class B/C) Source: Reis

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 51 Vacancy % by Submarket, 2016

For reference, the overall vacancy rate for all of Columbus (market defined by Reis) was 17.7%. The submarkets with higher vacancy rates than the overall Columbus market include Westerville, Southeast, Dublin/Hilliard and Worthington. The North Central submarket is reporting the lowest vacancy rate at 12.6% with Upper Downtown and Lower Downtown reporting vacancy rates of 13.9% and 13.0%, respectively.

30.0 27.9 25.1 25.0 21.3 20.0 18.1 17.0 16.7 17.7 13.9 15.0 13.0 12.6

10.0

5.0

0.0

Source: Reis

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 52 Asking Rent, 2000 - 2016 Class A product has historically reported the highest asking rents. Among all asset classes, there was a decline in the median asking rents from 2000 to 2004 followed by a few years of growth. The median asking rents remained relatively flat from 2008 to 2011 but have increased every year for the past several years. In year 2016, the overall median asking rent is $18.91 with class A and class B/C product reporting median asking rents of $21.37 and $16.38, respectively. $22.00

$21.00

$20.00

$19.00

$18.00

$17.00

$16.00

$15.00

$14.00 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Asking Rent (All) Asking Rent (Class A) Asking Rent (Class B/C) Source: Reis

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 53 Asking Rent by Submarket, 2016 For reference, the overall Columbus market is reporting an asking rent of $18.91 for year 2016. The Dublin/Hilliard, Upper Downtown and Lower Downtown submarkets are reporting higher asking rents ranging from $19.56 to $21.61. With the significant development occurring in Nationwide’s Grandview Yard development, located in the southeast periphery of the Upper Arlington submarket, we expect this submarket to report a substantial increase in the asking rent in the next couple of years. $25.00 $21.61 $20.27 $19.56 $20.00 $18.67 $18.64 $17.53 $16.59 $17.05 $15.98 $15.25 $15.00

$10.00

$5.00

$0.00

Source: Reis

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 54 Asking Rent by Class (Downtown/Suburban), 2016

According to the brokerage firm CBRE, the average asking rent in Downtown Columbus was $20.33 compared to an average asking rent of $18.56 in suburban communities. Between downtown and the suburbs, there was a deviation of less than $1.00 when considering the average asking rent for class A product.

$25.00 $22.14 $21.18 $20.33 $20.00 $18.68 $18.56 $17.18 $14.80 $15.00 $13.72

$10.00

$5.00

$0.00 Class A Class B Class C Total Class A Class B Class C Total Downtown Suburban

Source: CBRE

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 55 Office Scan Market Takeaways

• Total office inventory increased by ~19.1% from 2000 to 2016 (most among class A space) Columbus • Median asking rent of $18.91 per square foot. • Overall vacancy rate of 17.7% with a class A vacancy rate of 15.2%.

• Represents more than a third of all office square footage throughout the Columbus market. Downtown • Average asking rent of $20.33. • Vacancy rate is less than 14% (~4% lower than the overall Columbus market).

• Average asking rent of $18.56. Suburbs • Southeast and Westerville submarkets have the highest vacancy rates of 25.1% and 27.9%, respectively. • Upper Arlington and Bexley/Whitehall submarkets have the lowest asking rents among all submarkets.

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 56 Neighborhood and Citywide Industrial Context

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 57 Columbus Industrial Market

The Reis Columbus metro industrial market includes Franklin and portions of Delaware and Fairfield counties. Reis does not provide submarket industrial data. The brokerage firm Cushman & Wakefield (C&W) segments the Columbus metro market into six geographic areas (Northwest, Northeast, Southeast, Southwest, Downtown and Out-of- County). The industrial analysis primarily consists of data derived from Reis and C&W. The submarket boundaries detailed in the industrial analysis differ from the housing and office analysis.

Source: Cushman & Wakefield & Reis

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 58 Industrial Inventory, 2000 to 2016

Within the Columbus metro area as defined by Reis, the industrial inventory increased by 13.9 million square feet (9.9%) from 2000 to 2016. Industrial inventory increased steadily from 2000 to 2008 and then remained flat for the next several years. There was a slight increase in square footage in 2012 and 2013, followed by more robust growth in the past three years (2014 to 2016). 160,000,000

155,000,000

150,000,000

145,000,000

140,000,000

135,000,000

130,000,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Source: Reis

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 59 Inventory by Submarket, 2016 Excluding the Out-of-County submarket (as defined by C&W), the Southeast and Northwest submarkets offer the most industrial square footage. The Downtown submarket offers very little industrial space accounting for approximately 1.1% of the total industrial square footage in the Columbus metro area. The presence of Rickenbacker International Airport in the Southeast submarket, which is an attractive location for logistic strategy, is contributing to the high number of industrial square footage in this submarket. A notable addition to the Southeast submarket is Amazon, which added more than a million square feet of space.

90,000,000

80,000,000

70,000,000

60,000,000

50,000,000

40,000,000

30,000,000

20,000,000

10,000,000

0 Northwest Northeast Southeast Southwest Downtown Out of County Source: Cushman & Wakefield

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 60 Vacancy Rate, 2000 - 2016

The vacancy rate increased from 2000 to 2003 followed by a few years of slight decline. The vacancy rate increased by approximately two percentage points in the wake of the national recession. Since 2009, the industrial vacancy rate has declined every year with a year 2016 vacancy rate of 8.1%.

12.0

11.0

10.0

9.0

8.0

7.0

6.0 2000 2002 2004 2006 2008 2010 2012 2014 2016

Source: Reis

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 61 Vacancy % by Submarket, 2016 For reference, the overall vacancy rate for all of Columbus (market defined by Reis) was 8.1%. The Southeast submarket is the only submarket with a vacancy rate (9.0%) higher than the Columbus metro area. Note the Southeast submarket also has the greatest square footage of industrial space. Thus, the vacancy rate reported in the Southeast submarket has a greater influence on the overall Columbus metro vacancy rate. The limited industrial square footage in the Downtown submarket is reporting a vacancy rate of 7.3%. 10.00% 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Northwest Northeast Southeast Southwest Downtown Out of County

Source: Cushman & Wakefield

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 62 Asking Rent, 2000 - 2016

The median asking rent for industrial space in the Columbus metro area declined from 2000 to 2004, increased from 2004 to 2008, declined from 2008 to 2011 and has increased every year since 2011. From 2011 to 2016, the median asking rent increased from $3.87 to $4.33. This represents an increase of 11.9% over the past five years or an annual rate of 2.3%.

$4.40

$4.30

$4.20

$4.10

$4.00

$3.90

$3.80

$3.70 2000 2002 2004 2006 2008 2010 2012 2014 2016

Source: Reis

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 63 Asking Rent by Submarket, 2016 The Downtown and Northeast submarkets are reporting the highest average asking rents, while the Southeast and Out-of-County submarkets are reporting the lowest average asking rents. The Northwest, Northeast and Downtown submarkets contain a small share of bulk warehouse space when compared to the other submarkets. This is contributing to the lower asking rents in the Southeast, Southwest and Out-of-County submarkets. $4.10

$3.90

$3.70

$3.50

$3.30

$3.10

$2.90

$2.70

$2.50 Northwest Northeast Southeast Southwest Downtown Out of County

Source: Cushman & Wakefield

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 64 Industrial Scan Market Takeaways

• Total industry inventory increased by ~9.9% from 2000 to 2016. Columbus • Median asking rent of $4.33 per square foot (year 2016). • Overall vacancy rate of 8.1% (year 2016).

• Represents 1.1% of the industrial square footage space in the Columbus metro area. Downtown • Highest asking rent among all submarkets. • Vacancy rate is 7.3% (~80 basis points lower than the overall Columbus market).

• Significant development occurring in the Southeast submarkets in the Rickenbacker area. Suburbs • Southeast submarket, which contains the most square footage, has a higher vacancy rate than Downtown. • Southeast submarket has the lowest average asking rent, partially due to the high bulk warehouse sq. ft.

Columbus Incentive Study HR&A Advisors, Inc; Vogt Strategic Insights 65