Columbus Industrial Market Update | Q1 2026
- Joshua Waller
- Apr 25
- 3 min read
Columbus continues to stand out among major U.S. industrial markets. Despite broader national headwinds, the region tightened for a third straight quarter, running counter to the trend seen across most peer markets. Resilient demand from logistics users, a measured pullback in speculative construction, and growing investment from advanced manufacturing and data center tenants are setting the stage for near-term stability.
Here is a closer look at where the Columbus industrial market stands heading into the second quarter of 2026.
Demand Remains Strong
Net absorption of 10.6 million SF came in well above the three-year average of 8.5 million SF. As a share of total inventory, demand reached 3.4%, ranking Columbus second among major U.S. industrial markets behind only Phoenix.
Tenant preferences continue to favor Class A space with higher clear heights and greater operational efficiency. As new construction thinned out, availability in top-tier buildings dropped sharply. Available space in buildings delivered since 2020 fell from 28% in early 2024 to just 10% today.
With newer space increasingly scarce, tenants are backfilling well-located, functional properties from earlier cycles. Net absorption in bulk logistics buildings delivered between 2010 and 2019 turned positive in the second half of 2025, reaching its highest level in seven years. Even older properties are seeing meaningful activity. DHL took 737,500 SF in a 2006-built Southeast property, and Schnellecke Logistics moved into a 1994-built building totaling just over 305,000 SF.
Large leases drove much of the absorption. JBS Logistics, Ryder Logistics, Anduril, and Illuminate USA each committed to spaces larger than 700,000 SF in 2025. The mid-size segment is also gaining ground. Leases in the 100,000 to 250,000 SF range more than doubled their pre-pandemic average, and availability in that size range among post-2020 deliveries dropped from 33% in early 2024 to 10.5% today.
Rent Growth Leads the Midwest
Columbus ranks among the top U.S. industrial markets for rent growth, and the spread over the national average is meaningful.
Newer 100,000 SF-plus properties are asking in the $6.50 to $7.50 range per square foot. Older bulk logistics space typically trades below $6 per square foot. CJ Logistics recently leased 240,000 SF in a 2002-built Southeast Submarket property at $5.40 NNN. Small bay properties under 50,000 SF have seen strong pricing as well, with leases landing in the $10 to $12 range.
Concessions are becoming more common on larger deals. Hims, the telehealth company, signed a 15-year lease on a 352,000 SF Licking County property with five months of free rent and 3.25% annual escalations.
Construction Has Moderated
Industrial inventory in Columbus expanded 11% over the past three years, well above the national rate of 6.3%. However, the pace has slowed meaningfully. Net deliveries in 2025 came in at a six-year low of 8.3 million SF.
About 16.2 million SF is currently under construction, representing 4.1% of inventory compared to 1.7% nationally. Only 17% of the pipeline is available for lease, and roughly 28% consists of build-to-suit facilities for major users such as Intel, Anduril, and Meta, along with hyperscale data centers.
Licking County remains the fastest-growing industrial submarket in the region. Its inventory has expanded 25% in three years, supported by Intel's $20 billion semiconductor project and steady data center investment. Availability among bulk logistics facilities delivered since 2023 sits at just 4%.
The Southeast Submarket continues to draw significant activity, led by Anduril's 5 million SF hyperscale manufacturing facility. Less than 5% of the submarket's construction pipeline is currently available for lease.
Investment Activity Is Picking Up
Sales volume totaled $1.9 billion over the past 12 months, well above the five-year average of $1.4 billion. Q1 2026 alone saw $446 million trade hands, a 45% increase year over year.
Institutional investors have returned to Columbus with conviction, making up 49% of the buyer pool in the last 12 months. Sculptor Capital Management paid $122 million for a 1.3 million SF Union County facility leased to Scotts Miracle-Gro. Eaton Vance acquired a newly built 430,000 SF Groveport property fully leased to McKesson at a 5.5% cap rate.
Smaller infill and small bay assets are also drawing interest. A private buyer recently picked up four northern suburb properties along I-71 for $21.5 million at a 7.7% cap rate.
Looking Ahead
The fundamentals continue to favor Columbus. A central location within a one-day drive of roughly 60% of U.S. households, combined with expanding investment from advanced manufacturing, aerospace, defense, and data centers, should keep demand healthy through 2026.
For tenants, planning ahead matters. Top-tier space is tightening and concessions may narrow as availability declines. For owners and investors, the combination of steady rent growth and constrained speculative development should continue to reward patient, well-positioned capital.
If you are evaluating a lease, expansion, acquisition, or disposition in Central Ohio, I can help you work through the options and position your decision with the most current market data.