August 2025 Newsletter
Columbus, Ohio's Industrial Market: Riding Its Own Wave
If you’ve been following the U.S. industrial real estate market lately, you know it’s been a season of change. Across the country, things are slowing down—except, it turns out, in Columbus, Ohio. While some cities are hitting the brakes, Columbus is quietly gathering steam, carving out a reputation as a logistics powerhouse with energy you can feel on the ground.
What’s Happening Nationally?
Let’s start with the big picture. For the first time since 2010, the national market saw negative net absorption in the second quarter of 2025 — about 20 million square feet, according to CoStar Analytics. That’s a big shift after years of growth. Vacancy rates are inching up near 6.9% on average and could peak later this year. Developers are less eager to break ground with new construction starts down over 60% from their 2022 high. Leasing activity is cooling, especially for older buildings and bulk space over 500,000 square feet. Even rent growth, which seemed unstoppable, is flattening out in major markets.
Columbus: The Exception to the Rule
But Columbus is telling a different story. Here’s what’s really exciting:
- Q2 Absorption: The city absorbed between 2.6 million square feet, making it one of the top five markets in the country.
- Year-to-Date: Columbus has taken in 5.65 million square feet—an incredible turnaround from last year’s dip.
- Vacancy: Rather than rising, vacancies dropped from 8.42% to 7.83% in just one quarter.
- Leasing Buzz: Nearly 5 million square feet in Q2 alone, and most of that was from brand-new deals.
There’s heart behind these numbers. Companies like J. Boren & Sons Trucking and Ryder Logistics are making major commitments here (1.28M SF and 766K SF, respectively). Licking County accounted for 65% of all leasing activity and vacancy rates are dropping fast—down 4.3% from first quarter 2025 with modern bulk warehouse space almost fully spoken for.
How Columbus Stacks Up (Q2 2025)
|
Theme |
Columbus, OH |
U.S. National Market |
|
Net Absorption: |
Top 5 (2.6M SF) |
-20M SF |
|
Vacancy Rate: |
7.83% and falling |
6.6% – 7.3% and rising |
|
Construction: |
3.85 M SF in the pipeline, steady pace |
Pipeline shrank by over 60% since 2022 |
|
Rent Growth: |
Steady and competitive |
Flattening or dropping |
|
What’s Driving Demand: |
Logistics, 3PLs, build-to-suit |
More cautious, smaller scale |
Why Columbus Is Thriving
It comes down to a few simple strengths:
- Location, location, location: Columbus sits at the heart of the Midwest, perfect for companies that need to get goods across the region or deliver last mile.
- Modern facilities: Newer buildings meet today’s high standards—and they’re filling up fast.
- Speculative Projects: Over three-quarters of projects delivered since 2022 are already leased. That’s confidence in action.
- Investor Interest: With $272 million in deals last quarter (including a single asset going for $136 million!), investors clearly see long-term promise here.
- Affordability: Overall, Columbus lease rates are still affordable compared to coastal tier 1 markets.
Looking Ahead
It’s easy to get lost in national headlines about a cooling market, but the story on the ground in Columbus is one of determination and momentum. The fundamentals are strong, there’s room to grow, and people—from warehouse teams to investors—are betting on Columbus’ future.
Simply put, while others are slowing down, Columbus is still wide open for business. If you’re looking for a market that’s thriving against the odds, this city is one to watch.
