Q2 2025 Columbus Industrial Market Report
Highlights
- Following major move-outs totaling nearly seven million SF, the industrial sector reported a record-breaking vacancy rate of 7.7%, just 0.2% above the national average.
- Tenants with smaller footprints under 100,000 SF dropped 35% year-over-year, but larger tenant activity has kept leasing activity well-above pre-pandemic levels.
- Columbus remains in the top 10 U.S. markets for industrial growth, with rent growth sitting at 5.9%, reflecting pre-pandemic averages.
By the Numbers
- Sales Volume: $410M
- Cap Rate: 7.1%
- Market Sale Price Per SF: $92
- Vacancy Rate: 8.7%
- Rent Growth: 5.9%
- Market Asking Rent Per SF: $8.35
- SF Under Construction: 4.7M
- SF Absorbed: 675K
- SF Delivered: (744K) | Q2 2025 | Source: CoStar Group
Demographics
- Unemployment: 4.1%
- Current Population: 2,247,677
- Households: 909,533
- Median Household Income: $81,409
Market Performance
Performance throughout the sector shows early signs of stabilization, taking into account tenant size and submarket. Larger tenants, such as JBS Logistics and Anduril, are leading the growing demand among defense and tech manufacturers. The slowdown in small-tenant demand, driven by economic uncertainties and high absorption in small-bay properties, is affecting submarkets differently.
Licking County is a leading performer among submarkets, with a 3.9% vacancy rate in Q2, while Downtown West and Morrow County are tackling inflated vacancies exceeding 25% due to an influx of vacated subleased space. Newer mid-size distribution builds in prime, high-demand locations totaling between 100K and 250K SF are reaching above-average rents with some transactions nearing $9/SF. More outdated, oversized products are seeing a downward trend with lease rates hitting as low as $4.25/SF.
As tenants become more particular, market performance is increasingly influenced by asset-specific characteristics, such as building size, age, functionality, and proximity to key consumer demographics.
Market Asking Rent Per SF and Vacancy Rate
Source: CoStar Group
Under Construction
Approximately 4.7M SF has broken ground, and Columbus has one of its smallest pipelines since 2019. Roughly 69% of the units are pre-leased, with Licking and Pickaway counties accounting for over half, driven by build-to-suit demand. Major projects include the one million SF Intel Plant and 750,000 SF chip facility in New Albany, an 864,000 SF ODW Logistics center in Licking County, and several mid-size facilities by Tenby Partners and Trident Capital Group.
Sales
The Columbus industrial investment market is showing signs of renewed momentum, with property sales totaling $337 million in Q1 2025, the strongest quarterly total in two years. While the annual transaction volume remains below pre-pandemic levels at $1.1 billion, buyer interest is picking up, particularly from institutional investors drawn to the area’s robust rent growth, supply constraints, and strategic, ideal location.
Major deals include:
- 11555 Briscoe Parkway sold for $136M, the largest 2025 industrial deal, fully leased at 1.2M SF.
- 4448 Rickenbacker Parkway East sold for $67.4M at a 5.5% cap, demonstrating strong demand for logistics corridors.
- Ares acquired three fully leased Grove City assets for $70.8M, with tenants like FST, Vertiv, and Home Depot.
Sales Volume and Market Sale Price Per SF
Source: CoStar Group
12-Month Market Leaders: Top 10 Performing Submarkets
