Cost containment remains key for most tenants in the Columbus office market as many businesses continue to operate with lean workforces. Real estate is generally the second largest expense after personnel, so tenants closely monitor office space and look for ways to consolidate. The government and professional/business services sectors historically account for the largest portions of occupied office space in Columbus. While the metro area continues expanding and adding jobs, the office employment sector contracted over the last year with a net loss of 600 jobs except for a gain in professional and business services.

1. Office employment trends (12-month change)
Columbus
Total jobs vs. Unemployment rate
Columbus
Office employment update
Metro Columbus . May 2015
Cost containment remains key for most tenants in the Columbus market. Many
businesses continue to operate with a lean workforce. Real estate is generally
the second largest expenditure for companies after personnel costs, so
tenants are continuing to keep a close eye on their office space and look for
opportunities to consolidate or condense their operations as they manage
expenses. Columbus-based Huntington Bank’s recent announcement that it
would eliminate nearly 200 positions amid efforts to control rising personnel
costs is a common example of such cost containment strategies.
The government sector has long played an important role in the capitol city
and along with professional and business services, has historically accounted
for the largest portion of office-occupied space, reaching its highest peak in
2013 at just over 163,000 employees in December. The majority of
government entities are located in the CBD, and occupy more than four million
square feet of space, most of which is owner-occupied.
Office real estate implications
Job growth/loss by sector (12-month change)
Columbus
-1,000
-1,000
-800
1,100
2,000
2,200
2,200
3,200
6,600
7,000
-2000 0 2000 4000 6000 8000
Information
Financial Activities
Government
Manufacturing
Leisure & Hospitality
Professional & Business Services
Other Services
Mining and Logging
Educational & Health Services
Trade, Transportation & Utilities
Number of Jobs
Sources: Jones Lang LaSalle Research, Bureau of Labor Statistics
• The Columbus metro continued on its run of expansion by recently
adding 21,500 payrolls, annually, according to the latest figures from
the BLS. Total non-farm employment now sits at roughly 1.02 million
jobs. Meanwhile, unemployment currently stands at 4.4 percent, a
decrease of 90 basis points, year-over-year.
• Office employment sectors contracted over the last year, recording an
annualized net loss of 600 jobs. Professional and business services
was the only office-using supersector to post employment gains, adding
2,200 jobs, year-over-year. Meanwhile, the information and financial
services supersectors each dropped 1,000 from payrolls, annually.
• Total U.S. nonfarm employment increased by 223,000 jobs in April, a
healthy uptick after a disappointing March where job gains totaled just
85,000. The strong April results will help lower concerns among
economists and Wall Street of a hiring slowdown.
• U.S. unemployment decreased 10 basis points to 5.4 percent, its lowest
mark since May 2008. Wages also continued to trend in the right
direction in April, increasing 2.2 percent year-over-year.
(8.0)
(4.0)
0.0
4.0
8.0
12.0
16.0
2011
2012
2013
2014
2015
Financial Activities Professional and Business Services Information Government
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
750,000
800,000
850,000
900,000
950,000
1,000,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Total Employment
Unemployment
Peak: 996,834 jobs
2.8%
4.4%Columbus unemployment
2.2%Columbus12-month job growth
5.4%U.S. unemployment
2.2%U.S. 12-month job growth

2. © 2015 Jones Lang LaSalle IP, Inc. All rights reserved.
All information contained herein is from sources deemed
reliable; however, no representation or warranty is made
to the accuracy thereof.
JLL Americas Research • Columbus Office Employment Update 2
March 2013 March 2014 March 2015
Total Non-farm
Employment
972,100
2.0%
993,500
2.2%
1,015,000
2.2%
Unemployment Rate 6.5% 5.3% 4.4%
Columbus Supersectors March 2013 March 2014 March 2015
Mining, Logging and Construction 28,600 0.0% 31,700 10.8% 34,900 10.1%
Manufacturing 68,700 2.5% 69,000 0.4% 70,100 1.6%
Trade, Transportation, & Utilities 182,700 0.6% 185,200 1.4% 192,200 3.8%
Information 18,300 8.9% 18,100 -1.1% 17,100 -5.5%
Financial Activities 75,100 3.0% 75,100 0.0% 74,100 -1.3%
Professional & Business Services 159,300 2.4% 169,500 6.4% 171,700 1.3%
Educational & Health Services 139,700 1.7% 145,000 3.8% 151,600 4.6%
Leisure & Hospitality 93,200 3.2% 95,700 2.7% 97,700 2.1%
Other Services 37,600 3.9% 38,600 2.7% 40,800 5.7%
Government 165,300 -0.7% 165,600 0.2% 164,800 -0.5%
News on the street
Columbus businesses expanding, contracting, etc.
Employment statistics
Columbus
Industry employment stratification
Columbus
Aver Informatics Inc. Ι Computer Software: Expanding
Aver Informatics, a fast-growing software and data analytics firm, will move into the entire 14th floor of the Huntington Center skyscraper on Capitol Square this fall.
The technology company serving the health-care industry has shared space with investor Drive Capital LLC at 448 W. Nationwide Boulevard since coming to
Columbus last year. According to company officials, the firm expects to double its staff of 53 by the end of the year.
Dynamit Technologies LLC Ι Information Technology Services: Expanding
In the year since moving into larger offices in the Arena District, fast-growing Dynamit Technologies LLC has had to take even more space. And at 80 people, the
software and mobile application developer has more than surpassed its jobs growth pledge in a 2013 city tax incentive, when it hoped to grow to 65 jobs from 35.
Dynamit is on pace to hire another 20 this year. Dynamit had $5.8 million in revenue in 2014 and is on pace to double that this year.
Lextant Corp. Ι Consulting Service: Expanding
Columbus-based Lextant Corp., a research and design consulting firm, is seeking a five-year, 50 percent Columbus Downtown Office incentive for its plans to create
40 new jobs and retain 45. Founded in 1998, Lextant has been working with the world’s leading companies to bring meaningful products and services to market.
Lextant is currently located at 580 N. 4th Street in the Smith Brothers Hardware building in the Warehouse District.
Neo Innovation Ι Information Technology Services: Contracting
Neo Innovation has shut down operations of its Powell software development office three years after acquiring the former EdgeCase LLC. The office was down to
about 12 software engineers, from 33 in three cities in 2012, when Tokyo-based Digital Garage bought and combined several U.S. firms under its New Context
division. It was renamed Neo a few months later. Neo Columbus and the former EdgeCase specialized in agile development in the programming language Ruby.
Ringside Search Partners Inc. Ι Staffing Services: Expanding
Columbus-based Ringside Search Partners Inc., an employee staffing and executive search firm, is seeking a five-year, 50 percent Downtown Office Incentive for its
plans to add 32 new jobs and retain 14. In roughly four years, Ringside has grown into a $2.1 million-dollar talent acquisition firm covering nine states and
specializing in accounting, finance, tax, audit and information technology. Ringside occupies roughly 2,500 square feet in the PNC Plaza.
Ventech Solutions Inc. Ι Information Technology Services: Expanding
Ventech Solutions Inc. will add three offices and nearly 200 jobs over the next year to staff up for a 10-year contract managing data for a health care quality initiative
for the federal Centers for Medicare and Medicaid Services. Ventech, which now has 125 employees in Columbus and at client sites, will add about 15 in Columbus
as a result of the contract and try to shift more here through the decade, according to company officials.
Cody Brooks
Research Analyst
Great Lakes Region
tel +1 614 460 4444
Cody.Brooks@am.jll.com
65 E State Street,
Suite 550
Columbus, OH 43215
www.jll.com/columbus
Andrew Batson
Senior Research Analyst
Great Lakes Region
tel +1 216 937 4374
Andrew.Batson@am.jll.com
127 Public Square,
Suite 2410
Cleveland, OH 44114
www.jll.com/cleveland
Trade, transportation
and Utilities,
192,200, 19%
Professional and
Business Services,
171,700, 17%
Government,
164,800, 16%
Educational and Health
Services,
151,600, 15%
Leisure and Hospitality,
97,700, 10%
Financial Activities,
74,100, 7%
Manufacturing,
70,100, 7%
Other Services,
40,800, 4%
Mining, Logging and
construction,
34,900, 3%
Information,
17,100, 2%