Columbus' Industrial Market Continues to Rise
Once known as an office center, the metro area is now home to a key distribution network.
COLUMBUS—This metro area’s robust distribution market has recently brought in some of the nation’s most important developers and investors, and another big player is ready to jump in as well. Xebec just purchased 106 acres southeast of the city and near the Rickenbacker Inland Port, the largest cargo-dedicated airport in the world. The Dallas-based company plans to develop in several phases the Groveport Logistics Hub, a master planned campus with five class A warehouse buildings ranging from 120,000 square feet to one million square feet.
“The logistics cluster surrounding the Rickenbacker Airport is one of the most strategic regions in the world for modern logistics,” says Randy Kendrick, founder and chief executive officer of Xebec. “With its vast consumer reach, this Southeast Columbus submarket is poised for continued growth and demand for high quality distribution and warehousing space with a special emphasis on the e-commerce space.”
Although Columbus was once known primarily as an office center, the growing need for distribution centers has made the metro area into one of the most prominent distribution corridors in the country. Truckers here can reach nearly half of the US population in a day’s drive, including the all-important East Coast. And distribution spaces near Rickenbacker can forge links with freight hubs in Asia, Europe and the Middle East.
Xebec plans to invest roughly $90 million to develop its new hub and plans to break ground this summer on Phase 1. The company plans to build four speculative warehouses ranging from 120,000 square feet to 160,000 square feet. It will also construct a “super pad” for a one million-square-foot build-to-suit facility.
“Lease demand in the market has remained strong with less than 3% vacancy and all-time-high lease rates for modern bulk warehouse facilities on triple-net terms,” says Kendrick. “With the ability to plug into one of the most robust e-commerce supply chains in the world, we believe Columbus will remain a vital location for both logistics and fulfillment by national and global retailers.”
Xebec’s new hub borders industrial users to the east and OH Ste. Rte. 317 to the south. It is approximately two miles from the airport, three miles from the I-270, and five miles from the Norfolk Southern Rickenbacker International Intermodal Terminal.
“We believe Groveport Logistics Hub is the next logical site in the path of development in the Rickenbacker logistics cluster,” adds Kendrick. “This investment fits our national build-to-core strategy to develop highly functional product to meet specific, unique demands in each of our target markets across the US.”