How’s the Market? vs. How’s MY Market?

“How’s the market?” That’s the number one question brokers get asked. Most brokers will respond with simple data, like the current vacancy rate, and then talk about a few other metrics and maybe a recent deal.

I have been guilty of this as well, so this week I dove into some CoStar data to better illustrate where the industrial vacancy is in today’s market.

The overall industrial vacancy rate in Columbus as of August 1, 2023, is 5.6 percent. The information below shows that the market is very top-heavy, with higher vacancies in the bulk sizes and lower vacancy rates in the smaller size ranges.

There are 27 industrial properties with availability over 300,001 square feet, which is what is currently driving up the vacancy in Columbus and even nationally.

When a client that needs 80,000 square feet hears the vacancy rate is up to 5.6 percent, their immediate reaction is to think the market is softening and there may be more opportunities, or landlords may be willing to negotiate a little more. However, that may not be the case in the space size range they need.

It’s important to know your audience when discussing commercial real estate metrics. Focus on the individual and really find out what they are looking for when asking about “the market.”  Ask some probing questions:

• What market? This is a good start because real estate is very local.
• What size range of properties?
• Sale market vs. leasing market?

Also, be sure to ask these inquiring parties what they are seeing in the market. Your clients will be much more impressed with your engagement and listening rather than rattling off a bunch of stats that have no bearing on their business or real estate.

When a client asks, “how’s the market”, what they are really asking is: “how is MY market?”