Retailer bankruptcies and softer consumer spending weighed on demand in Columbus during early 2025, pushing big-box move-outs higher and briefly driving net absorption negative. Despite this, conditions remain tight after a decade of limited deliveries, with availability hovering above 4%, below the national average. Less than 5 million square feet is available for lease, about 30% below pandemic-era peaks, allowing vacated space to be backfilled quickly and keeping leasing near pre-pandemic norms. Off-price, experiential, and service-oriented tenants have absorbed much of the recent vacancy, while former drugstore sites present selective backfill and redevelopment opportunities. Rent growth has cooled from mid-2024 highs but remains healthy at 3.8% year-over-year, outperforming the national average.

 

Key Findings

• Columbus retail fundamentals remain historically tight, with vacancy at 3.0% and limited new supply, allowing 423K SF of absorption despite elevated retailer bankruptcies and big-box move-outs.
• Rent growth moderated but remains resilient at 3.8% YOY, supported by strong population growth, constrained availability, and average asking rents of $20.28 per SF that remain relatively affordable.
• Investment activity totaled $132M, with pricing near $157 per SF and an 8.3% cap rate, reflecting stable investor appetite anchored by low vacancy, limited construction, and durable long-term demand drivers.

 

Columbus Retail Supply & Demand Dynamics

Source: CoStar Group, Inc.

 

Columbus Demographics

Source: CoStar Group, Inc.

• Unemployment Rate: 4.6%
• Current Population: 2,254,427
• Households: 907,594
• Median Household Income: $84,122

 

Columbus anchors one of the Midwest’s fastest-growing metros, with roughly 2.2 million residents and population growth outpacing both national and regional averages. Strong in-migration, particularly in Delaware County, continues to expand the consumer base supporting retail demand. The metro benefits from a highly diversified, non-cyclical economy led by government, education, and healthcare, with The Ohio State University as the region’s largest employer. Columbus also functions as a major logistics and distribution hub, providing access to roughly half of U.S. households within a one-day drive. Significant advanced manufacturing investments from Intel, Honda, and Anduril are expected to support long-term job growth and household formation. Together, these fundamentals position the Columbus retail market for sustained demand and long-term stability.

 

Population, Labor, & Income Growth

Source: CoStar Group, Inc.

 

Columbus Retail Construction

Retail development in Columbus has remained limited, as high capital costs and interest rates continue to restrain new construction despite healthy tenant demand. Market rents trail national levels, tempering NOI growth and reducing the feasibility of speculative projects. Net deliveries totaled roughly 400,000 square feet over the past year, below the long-term average, with build-to-suit projects accounting for most additions. Only 350,000 square feet is currently underway, representing a small share of inventory and limiting supply-side risk. Mixed-use developments remain the primary source of new retail space, while commitments on existing projects are high. With construction starts at record lows, retail conditions are expected to remain tight over the next year.

 

SF Construction Starts

Source: CoStar Group, Inc.

 

SF Under Construction

Source: CoStar Group, Inc.

 

Columbus Retail Sales

Columbus retail investment activity finished Q4 2025 with $132.3 million in transactions, rebounding from Q3’s $108.1 million and closing the year with strong momentum. Private buyers remain the dominant force, representing 64% of deals, focusing on single-tenant net-leased properties like quick-service restaurants and drug stores at mid-6% cap rates. Key Q4 transactions included Hilliard Square ($8.7M, 7.3% cap) and Oak Creek Center ($20.4M), highlighting demand for well-leased, value-add assets. Tight retail availability, historically low construction, and above-average rent growth continue to attract both local and out-of-state capital, supporting stable fundamentals heading into 2026.

 

Cleveland Retail Sales Volume

Source: CoStar Group, Inc.

 

By the Numbers

Source: CoStar Group, Inc.

• Sales Volume: $132M
• Price Per SF: $157
• Cap Rate: 8.3%
• Vacancy Rate: 3.0%
• Rent Growth: 3.8%
• Asking Rent Per SF: $20.28
• Under Construction: 361K SF
• Delivered: 207K SF
• Absorbed: 423K SF