Columbus Retail Market Update | Q1 2026
- Joshua Waller
- Apr 24
- 4 min read
Updated: Apr 24
The Columbus retail market continues to operate under some of the tightest conditions in the country. Steady population growth, a thin construction pipeline, and ongoing backfill activity have kept availability low and pushed rent growth well ahead of the national benchmark. Here is a look at where the market stands as of the first quarter of 2026.
Availability and Vacancy Remain Historically Low
Vacancy in Columbus sits at 3.5%, with availability at 4.0%. That is comfortably below the national availability benchmark of 4.8% and marks the fourth straight year of record-low space availability in the market. Net absorption totaled roughly 37,000 SF over the past 12 months, a three-year high for Columbus but still well below the pre-pandemic annual average of about 1.1 million SF.
The rebound in demand came largely from the second half of 2025, as bankruptcy-related closures cooled and vacated space started filling back in. A clear example is Ohio Thrift Stores taking 43,300 SF at Delaware Shopping Center, a space previously occupied by Big Lots.
One caveat to the tight headline numbers: availability is not distributed evenly. Roughly 43% of the 4.7 million SF currently on the market sits in properties built in the 1980s and 1990s, and only about 20% of available space falls within three-mile trade areas with median household income above $70,000. For national tenants targeting strong demographics and high-traffic corridors, the practical supply is even thinner than the topline figure suggests.
Leasing Trends: Smaller Spaces, Service Tenants, and Suburban Growth
Leasing volume totaled 2.1 million SF in 2025, down 22% from the 2.7 million SF recorded in 2024. The slowdown is less about weak demand and more about a shortage of quality space to lease.
Activity concentrated in a few segments:
Small-format spaces below 2,500 SFÂ accounted for 26% of new lease volume, a four-year high. Food service tenants drove much of that activity, making up about a quarter of 2025 leasing.
Spaces between 5,000 and 15,000 SFÂ grew to 29% of new-to-market volume, up from 22% a year earlier. Discount retailers like Dollar General and Dollar Tree, along with service-based users, medical groups, and educational tenants, have been especially active in this range.
Mixed-use suburban developments anchored by grocers continue to drive strong spin-off activity. Kroger opened two new 123,000-SF stores over the past year, including the anchor location at Jerome Village in Union County.
Rent Growth Continues to Outpace the Nation
Asking rents in Columbus grew 5.1% year over year, more than double the 2.0% national benchmark and in line with high-growth markets like Charlotte and Phoenix. The market average sits near $21.00/SF, roughly 28% higher than Cincinnati and Cleveland but still about 20% below the national average.
The spread between new-build and established centers has widened meaningfully:
New suburban shopping centers in affluent trade areas are leasing above $40/SF NNN. Recent deals at Grandview Crossing reached $43/SF NNN, while Chestnut Hill in Westerville and Liberty Crossing in Powell have signed small spaces at $45/SF NNN.
Downtown corridors along North High Street and 4th Street are pricing smaller suites at $30 to $35/SF NNN.
Middle-income suburban centers remain in the low to mid-$20/SF range.
Junior anchor boxes generally fall between $15 and $20/SF, with some landlords offering rent concessions to secure larger tenants.
Cumulative rent growth of 24% since 2020, compared to 18% nationally, continues to create meaningful mark-to-market opportunities as long-term leases roll.
Construction Pipeline Stays Thin
About 210,000 SF is currently under construction in Columbus, equal to just 0.2% of total inventory. The national benchmark is 0.5%. Speculative construction accounts for only 20% of the active pipeline, and 83% of all under-construction space is already preleased.
Higher operating costs and elevated financing rates have kept groundbreakings muted. The most active submarkets for new construction include Outlying Delaware County, Westerville, Fairfield County, and Hilliard. Most notable projects are build-to-suit deals or tied to mixed-use developments, such as the new Kroger at Canal Winchester and a Lightbridge Academy inside the Market at Liberty Crossing in Powell.
Investment Sales Show Renewed Momentum
Retail investment activity picked up in 2025. Sales volume rose 38% to roughly $576 million, and the fourth quarter marked a three-year high. Transaction count grew 18%, while REIT and public buyers expanded their share of the buyer pool from a three-year average of 13% up to 20%.
Cap rates held in line with broader national trends:
Single-tenant net-leased QSR and service assets traded in the low to mid-6% range.
Non-grocery anchored centers generally landed in the low to mid-7% range. Olentangy Valley Center in Worthington sold for $7.3 million at a 7.4% cap.
Triple-net transactions made up about a third of total sales volume, a notable jump from 12% the year before, reflecting strong private investor appetite for smaller, passive assets.
What It All Means
For tenants, the message is to plan earlier. Quality space is scarce, competition for well-located suites is real, and rent growth in newer centers shows few signs of cooling. For landlords, the current environment still favors ownership, particularly for centers positioned within growing suburban trade areas. For investors, Columbus continues to offer one of the stronger rent growth stories in the country, backed by steady population gains and a disciplined supply pipeline.
Risks remain. Tariff pressures, slower hiring, and softer consumer spending could bring another round of store closures. Even so, the combination of limited new construction and ongoing demand is expected to keep Columbus retail fundamentals tight in the near-to-midterm.
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