The Columbus metro continues growing, which strengthens its position as a Midwest economic leader through a diverse employment base. Anchored by non-cyclical sectors, such as government, education, and healthcare, the metro benefits from the stability provided by major employers like Nationwide Insurance, Cardinal Health, and LBrands. This economic balance has fostered a robust labor market and made Columbus an attractive destination for both established corporations and new entrants.

 

Columbus Demographics

Source: CoStar Group, Inc.

• Unemployment Rate: 4.6%
• Current Population: 2,251,242
• Households: 905,644
• Median Household Income: $83,680

 

Population, Labor, and Income Growth

Source: CoStar Group, Inc.

 

Key Findings

• Columbus recorded 10.3 million square feet of net absorption over the past year, driven by mid-sized industrial users and robust leasing activity in the Southeast and Licking County submarkets.
• Following a period of rapid expansion, Columbus’ industrial inventory grew 19% over the past five years, outpacing the national average of 11%.
• Industrial investment remains strong, with $1.1 billion in transaction volume through the first nine months of 2025—the highest since 2022.

 

Market Performance

Columbus’ industrial market remains resilient, with demand rebounding sharply in Q3 2025 following prior move-outs. Net absorption over the past 12 months totaled 10.3 million square feet, with 6.7 million square feet absorbed in Q3 2025. Mid-sized users, occupying 100,000 to 250,000 SF, led leasing activity, and new deals in early 2025 more than doubled the five-year average.

 

The vacancy rate stands at 7.2%, supported by strong demand in the Southeast and Licking County submarkets, where availability among large-bay properties is well below the market average. While rent growth has slowed to 6.9% annually and tenant leverage is increasing in outlying areas, Columbus’ expanding manufacturing base, population growth, and strategic logistics position continue to underpin long-term industrial strength.

 

Columbus Industrial Supply & Demand Dynamics

Source: CoStar Group, Inc.

 

Columbus Construction

Columbus’ industrial sector continues to expand steadily while showing signs of balance after a construction surge. Industrial inventory has grown 19% over the past five years, well above the national rate of 11%. A sharp slowdown in speculative construction, now less than one-third of the pipeline, has eased supply pressures, tightening availability to 8.4%, below the national benchmark for the first time in nearly two years. Licking County leads growth with an 18% inventory increase since 2023, driven by major investments from Intel and Amgen. With deliveries slowing 39% year-over-year, vacancies are expected to tighten further through year-end and into 2026.

 

SF Construction Starts

Source: CoStar Group, Inc.

 

SF Under Construction

Source: CoStar Group, Inc.

 

Sales

Columbus’ industrial investment market remains strong, with sales volume totaling $352 million in Q3 2025, up 22% year-over-year. Through the first nine months of 2025, transactions reached $1.1 billion, the highest since 2022. Deal activity is concentrated in smaller assets under $10 million, though institutional capital is reemerging, with sales above $50 million doubling year-over-year. Notable transactions include ElmTree Funds’ $136 million purchase of a 1.2 million-square-foot DSV-leased property in Licking County and Prologis’ $67.4 million sale of a McKesson-occupied facility at a 5.5% cap rate. Strong rent growth continues to drive investor interest, particularly in infill and high-demand submarkets.

 

Sales Volume

Source: CoStar Group, Inc.