Q2 2025 Columbus, Ohio Commercial Real Estate Market Report
📍 Columbus, Ohio | 🗓️ Q2 Market Recap & Q3 Outlook
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Columbus commercial real estate (CRE) continues to show resilience in Q2 2025. Industrial and retail are driving growth, while the office sector shows early signs of stabilization. Land transactions remain strong, particularly in corridors tied to Intel, AWS, and advanced manufacturing projects. Below, we break down the key takeaways for investors, tenants, and developers.
“Retailers are targeting mixed-use and walkable nodes where daily needs, dining, and experience overlap—that’s where we’re seeing the strongest leasing traction.”
— William Roth, CEO & Founder, Roth Real Estate Group
Market Snapshot – Q2 2025
Total Industrial Inventory: ~334 million SF
Overall Industrial Vacancy Rate: 8.2–8.7%
YTD Net Absorption (Industrial): ~2.2 million SF
Under Construction (Industrial): ~5.4 million SF (63% BTS / 37% Spec)
Average Asking Rent (Industrial): $6.20–6.50/SF NNN
🔥 Hot Trends to Watch
Modern Bulk Industrial Demand – 100K–300K SF distribution facilities in Licking and East submarkets continue to lease quickly, often pre-leased before delivery.
Retail Repositioning – Aging neighborhood centers are being redeveloped into healthcare, fitness, childcare, and co-working hybrids.
Data-Driven Land Rush – Parcels with heavy power and fiber access near Intel, AWS, and Rickenbacker corridors are commanding record pricing.
Flight to Quality Office – Tenants are consolidating footprints but upgrading into ESG-certified, amenity-rich Class A space, especially suburban.
Suburban Retail Infill – Daily-needs retail (grocers, medical, childcare) thrives in suburbs like Hilliard, Powell, and Grandview where supply is limited.
Adaptive Reuse Momentum – Franklinton and other urban nodes are seeing retail and office tenants attracted to creative, repurposed spaces.
Capital Targeting Land – Investors and developers are focusing on shovel-ready, utility-prepared parcels as entitlement speed becomes critical.
Retail Market: Resilient + Transforming
Retail remained one of Columbus’s brightest spots in Q2. Vacancy tightened to just 2.72%, supported by strong leasing activity in neighborhood centers. Demand from grocers, fitness, and service-based tenants kept absorption positive, with Big Lots and Habitat ReStore among the quarter’s larger transactions.
Vacancy: 2.72%
Net Absorption: +70–75K SF
Avg Asking Rent: $19.60/SF
Under Construction: 0.25–0.46M SF
Investment Volume: $95M @ ~$140/SF
Office Market
The Columbus office sector is stabilizing after a challenging cycle. Q2 posted modest +69K SF of absorption. While overall vacancy is still elevated at ~21%, Class A suburban offices under 20K SF are seeing the most traction. Conversions and amenity-rich upgrades remain the story for B/C product.
Vacancy: 21%
Net Absorption: +69K SF (flat to slightly positive)
Avg Asking Rent: $20.90/SF
Under Construction: 200K SF (mixed-use projects)
“We’re in a reset phase. Tenants want modern space, but they’re also reevaluating how much they need. The spaces seeing traction are smartly laid out, amenity-driven, and inspire return-to-office.”
— Scott Steidel, Partner, SVP, Roth Real Estate Group
Land Market
Land sales surged past $265M in Q2, led by shovel-ready parcels in Canal Winchester, Plain City, and Rickenbacker-adjacent corridors. Cap rates remain firm at 5.0–6.0%, with heavy competition among developers for utility-ready tracts.
Total Sales Volume: $265M+
Top Sale: $51.9M at 9850 Innovation Campus Way
Cap Rates: 5.0–6.0%
“With tech growth and infrastructure investments, Columbus continues to be one of the most strategic land plays in the Midwest. We’re seeing unprecedented urgency in utility-ready land.”
— Andy Patton, Partner/CBO, Roth Real Estate Group
Industrial Market
Columbus remains one of the nation’s leading industrial hubs. Q2 delivered 1.9–2.4M SF of net absorption, dropping vacancy into the 8.2–8.7% range. Demand is strongest for modern bulk distribution (100K–300K SF) in the Licking and East submarkets.
Vacancy: 8.2–8.7%
Net Absorption: +1.9–2.4M SF
Avg Asking Rent: $6.20–6.50/SF (new bulk closer to $7)
Under Construction: ~5.4M SF (63% BTS / 37% Spec)
“What’s most exciting is the shift from just-in-time to just-in-case logistics. That’s translating into real demand for mid-size distribution hubs across Columbus.”
— Andy Patton, Partner/CBO, Roth Real Estate Group
Submarket Spotlights
CANAL WINCHESTER
Retail occupancy above 95%, with average asking rents around $25/SF. Industrial vacancy is just 1.9%. Properties like 10013 Busey Rd highlight the submarket’s industrial momentum.
Retail Occupancy: 95%
Avg Rent: $25/SF/YR
Key Assets: 10013 Busey Rd
FRANKLINTON
Retail occupancy exceeds 94%, with asking rents in the $23–25/SF range. Adaptive reuse and creative projects are reshaping the submarket. Watch properties like BrewDog (463 Town St.) and 68 McDowell for investment and redevelopment opportunities.
Retail Occupancy: 94%
Avg Rent: $23-25/SF/YR
Key Assets: BrewDog (463 Town St.) and 68 McDowell St.
Hidden Gems
Whitehall: New public-private partnerships and redevelopment of retail corridors offer ground-up and infill opportunities.
Canal District: Infrastructure upgrades and growing restaurant presence are building long-term value.
Northland: Older retail centers present repositioning potential for medical office, flex, and discount retail uses.
Economic Indicators – Q2 2025
Job Growth: +4,400 jobs in early 2025 (~0.4%)
Population Growth: +30,348 residents (+1.4% YoY)
GDP Growth: +2.2% YoY (~$182B metro GDP)
Major Announcements:
Phillips Edison & Co. acquisitions; Intel Licking County campus expansion; AWS data centers; Anduril’s 500-acre advanced manufacturing site at Rickenbacker.
Quarter in Review
Retail: Positive absorption, rising occupancy (97.3%)
Office: First positive quarter in a year (+183K SF)
Industrial: Net absorption strong, with demand outpacing new supply
Investment Volume: Retail leads activity; office trades limited
Development: Focused in Licking, Powell, and Hilliard submarkets
Second Half 2025 Forecast
Retail: Development will stay tight. Leasing focused on daily-needs retail and fitness.
Office: Renewals will dominate. Creative reuse may accelerate in urban corridors.
Industrial: Licking, East, and Southeast submarkets will lead. Rents expected to increase modestly.
Land: Look for more trades in power-adjacent and fiber-ready sites.
Final Takeaways
Investors: Columbus offers stable rent growth and strong land/industrial plays.
Tenants: Renew early, as tight vacancy in Class A retail and office limits options.
Developers: Focus on utility-ready land and transit-accessible corridors with tech adjacency.
Q2 reinforces Columbus’s position as one of the Midwest’s most resilient CRE markets, with strong fundamentals and a balanced outlook heading into the second half of 2025.
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