Columbus, Ohio, has long been a pivotal hub for industrial real estate, thanks to its strategic location and robust logistics network. As 2025 unfolds, the market continues to evolve, reflecting a mix of challenges and opportunities for stakeholders. Here’s a closer look at the key trends shaping Columbus’s industrial landscape.
Leasing Activity: A Year of Renewals
Annual leasing activity in Columbus saw a slight dip of 3.5% year-over-year, totaling 8.9 million square feet. Interestingly, 46% of this activity came from lease renewals, which surged by 18.2% compared to the previous year, reaching 4.1 million square feet in the first half of 2024. This uptick in renewals underscores a growing trend of tenants opting to secure existing spaces rather than seeking new leases in an environment of limited supply and cautious expansion.
Absorption Trends: Signs of Stabilization
Net absorption—the amount of space newly occupied minus the space vacated—stood at 3.1 million square feet in the first half of 2024. While this marked an improvement over the previous quarter, it remained 21.4% lower than the same period in 2023. Despite this decline, the steady absorption levels signal a market gradually moving toward equilibrium after a record-breaking year of construction deliveries.
Construction: Slowing but Strategic
The pace of new construction continues to decelerate in Columbus. Only 1.7 million square feet of industrial space broke ground in the first half of 2024, a sharp decline compared to previous years. Notably, 31% of these projects were built-to-suit, indicating a shift toward customized solutions tailored to specific tenant needs.
On the completion front, Columbus delivered 4.4 million square feet of new space in the first half of 2024, a 56.9% year-over-year decrease. This slowdown follows a historic 2023, which saw a record-breaking 17.7 million square feet of industrial space delivered.
What This Means for Columbus’s Industrial Market
Columbus remains a strong contender in the industrial sector, but the dynamics are shifting. High renewal rates and reduced construction activity suggest a more cautious market approach, with stakeholders focusing on optimizing existing assets rather than aggressive expansion. As demand stabilizes, landlords and developers must adapt to the changing needs of tenants, including the growing preference for built-to-suit projects.
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