Columbus Commercial Office Space for Rent

Q4 2025

Columbus Commercial Real Estate Market Report

Focus: Q4 2025 Market Trends

Executive Summary

The Columbus commercial real estate (CRE) market is exhibiting signs of a strong recovery and renewed momentum as 2025 concludes [1.1, 5.1]. The Office sector reached a significant milestone with record-low vacancy and positive absorption, signaling sustained demand [1.1, 1.2]. Industrial markets remain robust, maintaining positive absorption for three consecutive quarters despite a slight vacancy uptick [2.1]. Retail is stable with constrained supply keeping vacancy low, while Multifamily fundamentals are resilient, supported by steady renter demand even as new supply peaks [3.1, 4.1].

TenantBase Proprietary Data [6] highlights the distribution of active tenant demand over the last 90 days (280 total deals):

  • Retail/Storefront dominated market activity with 74.64% of all searches [6].
  • Warehouse was the second most active sector at 16.79% [6].
  • Office accounted for 10.00% of total search volume [6].

Office Market

Market Overview Columbus's office market is witnessing a notable turnaround, characterized by "record-low vacancy" and the highest positive net absorption since 2019 [1.1].

  • Vacancy & Availability: The overall vacancy rate dropped to 20.5%, the lowest level since early 2022, marking a significant improvement [1.1, 1.5]. Year-to-date vacancy improved to 21.4%, down from 21.9% earlier in the year [1.2].
  • Net Absorption: Net absorption surged to 200,021 SF in Q3 2025, driven by major move-ins like Vertiv (59,000 SF) and Rev1 Ventures (43,000 SF) [1.1]. The Central Business District (CBD) led all submarkets with 127,708 SF of positive absorption [1.2].
  • Rental Rates: Average asking rents rose to $22.35 per SF, a $0.76 increase from the previous quarter, indicating returning landlord confidence [1.2, 1.5].
  • Market Drivers: Tenant interest picked up significantly in September, particularly from professional services firms [1.2]. Leasing activity also saw a boost from companies reclaiming sublease space, such as CoverMyMeds and BBI Logistics [1.1].

TenantBase Activity [6]

  • Demand Share: Office accounted for 10.00% of total search volume [6].
  • Lease Term Preference: Demand is predominantly for short-term flexibility [6]:
    • Less than one year: 50.00% of deals [6].
    • 3-5 Years: 23.08% of deals [6].
    • 2-3 Years: 11.54% of deals [6].
  • Size Requirements: Tenants seeking short-term leases are looking for smaller spaces. The average lower SF required for a Less than one year term is 500 SF, compared to 1,333 SF for a 3-5 Years term [6].

Industrial & Warehouse Market

Market Overview The Columbus industrial sector continues to demonstrate strength, with sustained demand absorbing a steady stream of new supply [2.1].

  • Vacancy & Rent: The vacancy rate decreased by 40 basis points to 7.0% [2.1]. Another source places vacancy slightly higher at 7.7%, but notes a 100-basis-point contraction due to strong leasing [1.5]. Average direct asking rents rose slightly to $6.13 per SF [1.5].
  • Demand & Supply: Net absorption reached 2.48 million SF to 3.5 million SF in Q3, depending on the report, marking the third consecutive quarter of positive demand [2.1, 1.5].
  • Construction: Developers broke ground on eight new projects, bringing the pipeline to 5.1 million SF [2.1].
  • Leasing Highlights: Major transactions included a 630,000 SF renewal by FARO Logistics and a significant expansion by MEI Rigging & Crating [2.1].

TenantBase Activity [6]

  • Demand Share: Warehouse accounted for 16.79% of total search volume [6].
  • Lease Term Preference: Demand is fairly evenly distributed across lease terms [6]:
    • 2-3 Years: 26.67% of deals [6].
    • 1-2 Years: 20.00% of deals [6].
    • Less than one year: 20.00% of deals [6].
  • Size Requirements: The average lower SF required for a Less than one year term is 6,250 SF, while the 5+ Years term average requirement increases to 8,667 SF [6].

Retail Market

Market Overview Columbus's retail market is stable, with low vacancy constraining activity but supporting strong fundamentals for existing landlords [3.1, 3.2].

  • Vacancy & Availability: Vacancy remains "persistently low," limiting leasing options for new tenants [3.1]. Sub-4% vacancy rates were reported in high-demand north and south side submarkets [3.2].
  • Net Absorption: Net absorption was essentially flat or slightly negative at (6,173) SF, reflecting the lack of available space rather than weak demand [3.1].
  • Construction: The construction pipeline dropped to a record low, with only 287,465 SF underway, which will keep vacancy tight [3.1, 3.2].
  • Investment: Sales volume reached $127.4 million in Q3, with investors targeting medical retail and service-oriented centers [3.1].

TenantBase Activity [6]

  • Demand Share: Retail/Storefront activity dominated with 74.64% of all searches [6].
  • Lease Term Preference: Retail tenants show a clear preference for longer-term stability [6]:
    • 3-5 Years: 36.36% of deals [6].
    • 5+ Years: 23.86% of deals [6].
    • 2-3 Years: 14.77% of deals [6].
  • Top Locations: Tenant interest is highest in the following areas (deal counts) [6]:
    • Columbus (City): 24 [6].
    • Airport / Bexley / Downtown / Dublin: 8 [6].
    • Hilliard: 6 [6].

Multifamily Market

Market Overview The multifamily sector is showing resilience, with rent growth outpacing the national average despite a peak in new deliveries [4.1, 4.4].

  • Vacancy & Occupancy: Vacancy rose modestly to 9.9% as over 9,400 new units were delivered in the last 12 months [4.1]. However, absorption remains robust, reaching 5,586 units over the same period [4.1].
  • Rents: Annual rent growth slowed to 1.2%, but Columbus continues to rank among the top 10 metros for rent increases [4.1, 4.4]. Projections suggest rent gains could approach 4.0% by 2025 [4.4].
  • Construction: The supply wave has crested, with construction starts falling nearly 50% in 2024, setting the stage for a sharp decline in deliveries by 2026 [4.4].
  • Investment: Sales volume held steady at $844 million, with institutional capital accounting for 40% of buyer activity, signaling long-term confidence [4.1].

2026 Outlook

Looking ahead to 2026, the Columbus market is positioned for stability and "intentional shifts" toward long-term growth [5.1].

  • Office Evolution: The market will continue to bifurcate, with demand concentrating in modern, amenity-rich buildings that support hybrid work [5.1].
  • Industrial Strategy: Tenants will prioritize functional layouts and location efficiency over rapid expansion, with submarkets like Groveport and New Albany seeing targeted growth [5.1].
  • Investment Landscape: While interest rates remain a factor, the slowdown in new construction across all sectors is expected to tighten fundamentals and support value appreciation by late 2026 [5.1, 5.2].

Sources

  1. CBRE: Columbus Office Figures Q3 2025
  2. Newmark: Columbus Office Market Overview - Imgix
  3. Colliers: Q3 2025 RETAIL MARKET UPDATE
  4. Realist Capital: Columbus, OH Multifamily Market Analysis – Q3 2025
  5. The Robert Weiler Company: 2026 Commercial Real Estate Trends in Columbus
  6. TenantBase Proprietary Market Data (Columbus - Last 90 Days)

Information in this report is aggregated from various third-party sources and synthesized using artificial intelligence and other research tools. While we believe these sources to be reliable, we cannot guarantee the absolute accuracy or completeness of the data. This report is intended for informational purposes to provide market insight and should be independently verified prior to any use in a real estate transaction or legal commitment.