Dublin-Hilliard office market hottest in area

Dublin continues to be a desirable location to do business.

The Dublin-Hilliard market had the Columbus metropolitan area's lowest office vacancy rate in the second quarter of 2008, according to a recent study.

"That is consistent with what we've been told and estimated," said Dana McDaniel, director of economic development and deputy city manager.

A study released by the Marcus & Millichap national office and industrial properties group showed the Dublin-Hilliard market's office vacancy rate of 15 percent was significantly lower than other central Ohio suburban communities. The Bexley/Whitehall/Gahanna vacancy rate was 18 percent. Westerville had a vacancy rate of 21.5 percent, Upper Arlington 22.2 percent and Worthington 23.5 percent.

The study reinforces "that we are an address people are seeking and an excellent place to do business," he said.

McDaniel said having some vacancies is a good thing, because having leases come up for renewal gives businesses the opportunity to move into or expand in Dublin.

So what makes the Dublin-Hilliard market desirable? McDaniel said it is a combination of factors that include location, business related services, quality of life for employees, affordable housing and high quality buildings.

While McDaniel couldn't recall Dublin's vacancy rate in the past, he knows the numbers are looking significantly better.

In late 2004 and early 2005 there were large amounts of speculative office space available, which ultimately drove lease rates down and allowed more businesses to locate in Dublin, McDaniel said.

"It became very competitive and people saw it as an opportunity to get into this building stock," he said. "The market helped us get into smaller vacancy rates."

McDaniel and Hilliard economic development director David Meek said both cities have worked to streamline the process for office development, an obstacle in many communities.

"We gave the brokers and the building owner a level of comfort as we went out to find deals for the building," Meeks said. "We wanted them to know they weren't going to have to reinvent the wheel every time they found a new potential tenant. If they called me up in the evening and said, 'OK, we're meeting with these guys, here's the base details.' I would say, 'OK, we will have a letter for you tomorrow, so when you meet with them you will be prepared.' "

It seems to be paying off. In Dublin, the city has permits for alterations and additions to buildings totaling more than $17-million. With several big projects nearing the permitting process, McDaniel expects 2008 to top the $21.5-million recorded in 2007.

ThisWeek Staff Writer Jeff Donahue contributed to this story.

A closer look

Columbus metro area office vacancy rankings (second quarter 2008)

Rank Market Vacancy Rate

1. Dublin-Hilliard 15.0%

2. Upper Downtown 15.2%

3. Lower Downtown 15.4%

4. Southeast 16.0%

5. North Central 17.5%

6. Bexley/Whitehall/Gahanna 18.0%

7. Westerville 21.5%

8. Upper Arlington 22.2%

9. Worthington 23.5%

10. Southwest 28.2%

Source: Marcus & Millichap national office and industrial properties group.