Q1 2025 Columbus, Ohio Commercial Real Estate Market Report
📍 Columbus, Ohio | 🗓️ Q1 Market Recap & Q2 Outlook
📥 [Download the Full Report as a PDF]
Columbus CRE Outlook: Strength in Diversity, Momentum in Motion
Despite national headwinds like rising interest rates and cautious lending, Columbus, Ohio’s commercial real estate market continues to thrive—outpacing many of its Midwestern peers. A diverse economy, strategic location, and resilient tenant demand are fueling growth across key sectors.
“We’re seeing real momentum return to Columbus’s urban retail corridors, and the energy in redevelopment zones like Jaeger Square is contagious.”
— William Roth, CEO & Founder, Roth Real Estate Group
Market Snapshot – Q1 2025
Total Inventory: 322 million SF
Vacancy Rate: 8.6%
YTD Net Absorption: 2.2 million SF
Under Construction: 2.4 million SF
Avg. Asking Rent: $5.85/SF
🔥 Hot Trends to Watch
📡 Data Center Expansion: New Albany and Hilliard are ground zero for infrastructure growth, fueled by investments from Meta, AWS, Microsoft, and Google.
🏭 Industrial Boom: Low vacancy, strong leasing along I-70/I-71, and a healthy pipeline reflect regional dominance.
🌆 Urban Retail Resurgence: Neighborhood corridors like Short North and German Village are outperforming with <4% vacancy.
🌱 Land Rush: Buyers are targeting utility-ready sites near tech corridors and infrastructure zones like Hilltop and Innovation Campus.
🛍️ Retail Market: Resilient + Transforming
Vacancy Rate: 3.58%
Net Absorption: 97,200 SF (36% YoY growth)
Construction: 351K SF
Top Assets: Mixed-use & storefront retail
Trend: Consumer spending is softening, but suburban service retail is still strong.
Forecast: Expect modest rent growth and continued demand in suburban nodes like Dublin, Hilliard, and New Albany.
Office Market: Polarized + Adapting
Vacancy Rate: 23.9%
Net Absorption: -110,000 SF
Leasing Activity: 364,000 SF (+17% YoY)
Avg Rent: $21.53/SF | Class A: $23.21/SF
Top Performers: Class A suburban offices with great light, layouts, and amenity sets.
Forecast: Look for more adaptive reuse and price compression in outdated Class B/C stock.
“The assets seeing real traction are those with smart layouts and amenities that make employees want to come in.”
— Scott Steidel, Partner, SVP, Roth Real Estate Group
🌎 Land Market: Competitive + Accelerating
Total Sales Volume: $253M
Top Sale: $51.9M at 9850 Innovation Campus Way
Cap Rates: 5.5%–6.5%
Buyer Mix: Developers, end-users, and institutional funds
Forecast: As entitlement timelines improve and infrastructure spending continues, expect Q3-Q4 land activity to surge.
“We’re seeing accelerated competition in zones like New Albany and Hilltop.”
— Andy Patton, Partner/CBO, Roth Real Estate Group
🏗️ Industrial Market: Tightening + Scaling
Vacancy Rate: 8.42% (first decline in 3 years)
Net Absorption: 3.6 million SF
Avg Rent: $6.41/SF (Net)
Under Construction: 4.2 million SF (mostly build-to-suit)
Hot Product: Mid-size bulk distribution (50K–300K SF)
Forecast: Pre-leasing strength will continue, with growing investment in cold storage and flex industrial.
“Users want flexibility, proximity to labor, and buildings they can grow into.”
— Jennifer Rooney, Partner, SVP, Roth Real Estate Group
Submarket Spotlights
🎨 Short North Arts District
Retail Occupancy: >96%
Avg Rent: $27.00/SF/YR
Opportunities:
The Sutton (1,459–11,479 SF modern retail)
491 Park Street (11,731 SF turnkey restaurant)
🧱 German Village
Retail Occupancy: >96%
Avg Rent: $27.00/SF/YR
Key Asset: Jaeger Square (Spring 2025 delivery with 8,250 SF of retail)
🏙️ Hidden Gems
Brewery District: Gaining momentum with residential integration
Trolley District: East Market success signals opportunity
Hilltop: 15-year, 100% tax abatements are sparking developer interest
📈 Economic Indicators – Q1 2025
Job Growth: +4,500 jobs (+0.4%)
Population: 1.746 million (+1.1%)
GDP Growth: 2.59% YoY
Major Announcements:
Anduril Industries: 5M SF advanced mfg. near Rickenbacker
AWS: $10B data center expansion
Intel: $20B semiconductor facility
Coca-Cola Consolidated: $90M distribution investment
💼 Quarter in Review
CRE Investment: Down 10–12% YoY
Leasing Velocity: Strongest in industrial and retail
Cap Rates: 6.5–7.5% for core-plus assets
Development: 2.4M SF under construction—mostly industrial
🔮 Second Half 2025 Forecast
Retail: Lifestyle centers, suburban service retail will lead
Office: Class A or conversion—no middle ground
Industrial: Pre-leased projects will push rents upward
Land: Data center and logistics zones remain top targets
📥 Download the Full Report
Want deeper insights and a custom portfolio review? 👉 [Download Full Report]
Let Roth Real Estate Group help you position for what’s next.