November 2025 Newsletter
Planning for 2026: What Tenants Should Be Thinking About Now
As we approach the end of 2025, November and December stand out as the most strategic months—not just for closing deals, but for setting the stage for success in the year ahead. Whether you’re preparing for growth, navigating uncertainty, or refining operations, now is the time to reflect, recalibrate, and get ahead for 2026.
🔍 What Worked in 2025 — And What Didn’t
This year was a blend of resilience and recalibration. Columbus outperformed national trends, showing strong absorption and stable fundamentals. However, across the U.S., we saw signs of contraction: rising vacancies, slower lease-ups, and more cautious tenant behavior.
Tenants who succeeded in 2025 did three things well:
- Stayed agile and cautious: Uncertainty around trade policy led tenants to pursue flexible lease terms and adaptable space needs—a trend likely to continue into 2026.
- Leveraged the market: Tenants who renewed or relocated found more options and were able to upgrade facilities and operations.
- Built strong relationships: Collaborating closely with brokers and landlords helped tenants navigate uncertainty.
Efficiency Drivers — How Tenants Streamlined Operations in 2025
- Holding more inventory: Especially among 3PL providers, tenants increased on-hand stock to buffer against tariff-driven import disruptions.
- Predictive maintenance technology: AI-driven analytics identified maintenance needs early, reducing downtime and repair costs.
- Smart facility tools: Automated leasing platforms, chatbots, and cloud-based systems streamlined operations and cut administrative costs.
📈 What Tenants Should Be Planning for in 2026
1. Space Strategy: Expansion, Optimization, or Optionality?
- Assess whether your current footprint aligns with your operational goals.
- Growth-minded? Start scouting now—inventory is tightening in key submarkets.
- Consolidating? Consider subleasing or renegotiating terms before renewal windows close.
- Exploring purchase options? With more inventory on the market and the Fed lowering interest rates, purchasing may be viable for some tenants.
Columbus Opportunity: There’s a potential oversupply of industrial space under 300,000 SF in Columbus. Tenants in the 50,000–300,000 SF range may be able to capitalize on this imbalance—through more favorable lease terms, incentives, or access to better-located or upgraded facilities.
2. Lease Review & Reconciliation Readiness
- Operating expense reconciliations will hit early next year.
- Review lease clauses now to ensure transparency and protection.
- Partner with professionals to benchmark costs and catch errors before they impact your bottom line.
3. Capital Planning & Budgeting
- Factor in rising costs, potential TI allowances, and shifting rent trends.
- Columbus rents remain competitive, but national averages are moderating.
- Build flexibility into your 2026 budget to accommodate market shifts.
4. Labor & Logistics Alignment
- Ensure your space supports your workforce and supply chain.
- Revisit location strategy based on labor availability and transportation access.
- Consider proximity to 3PL hubs or intermodal facilities for efficiency.
5. Risk Management & Contingency Planning
- 2025 reminded us that uncertainty is the only constant.
- Prepare for economic shifts, regulatory changes, and evolving tenant demands.
- Build contingency clauses into leases and maintain open dialogue with landlords.
Columbus Market Snapshot (Q3 2025)
The following averages are from the Q3 market reports of the largest commercial real estate firms in Columbus (NAI Ohio Equities, CBRE, JLL, Newmark, Cushman & Wakefield, Colliers, Lee & Associates) and reflect the entire market. Metrics will vary by product size; what matters most is understanding where leverage lies—landlord or tenant.
Vacancy Rate: 7.28%
Net Absorption (SF): 2,284,934
Avg. Lease Rate (NNN): $6.50
🤝 Let’s Plan for Success—Together
Whether you’re closing out a deal in Q4 or laying the groundwork for 2026, now is the time to think strategically. Our team is here to help you assess your current position, identify opportunities, and build a plan that aligns with your goals.
