kbc-wordmark-logo

Market Reports

Q2 2026 Columbus Market Report

Abstract

Columbus industrial vacancy fell to 4.9% in Q2 2026, down 50 bps QOQ, driven in part by West Jefferson, where vacancy dropped to 6.9% following a large lease at 1020 Enterprise Parkway. Net absorption reached 3.0M SF in Q2 and 6.3M SF YTD. Demand stayed strong with 4.9M SF of gross leasing activity, up 13.5% QOQ, led by new leases over renewals.

Columbus

ECONOMY

  • The economic tailwinds we noted in our first quarter market report were transformed into stronger second quarter employment growth and sustained retail spending.

  • Looking forward, as we noted in our insight, “The Inverted Pyramid Economy”, economic growth is largely dependent on one sector, AI, making AI’s continued success a key factor in the economic success of the second half of this year and with it, demand for logistics space.

  • Additional factors we are also watching for their potential impact on the economy and demand environment for logistics space include domestic manufacturing investment, real wage growth, retail sales, trade policy, financial market conditions, and geopolitics, among others.

VACANCY

  • The Columbus industrial market experienced a decline in vacancy in Q2 2026. At the end of the second quarter vacancy closed at 4.9%. This is a 50-basis point (bp) decrease quarter-over-quarter (QOQ) and a significant 330-bp decrease year-over-year (YOY).

  • The Columbus market continues to see overall vacancy tighten, driven largely by limited availability in Class A industrial space. This scarcity is pushing tenants into B and C product as well, further compressing vacancy across that segment.

  • In Q2, Crane Worldwide Logistics leased all 832,600 square feet (SF) at 1020 Enterprise Parkway, dropping the West Jefferson submarket vacancy rate from 11.8% at the end of Q1 to 6.9% now. This marks the second consecutive quarter of significant vacancy decline in this submarket, each driven by large transactions.

  • The 1020 Enterprise Parkway lease transaction also leaves the market with one building currently vacant and available greater than 500,000 SF.

  • At the end of Q2, the market had just three buildings over 400,000 SF vacant and available, totaling 1.7M SF. Two of these three buildings were built in the 1990s, reflecting a lack of modern bulk supply. Additionally, there is no bulk vacancy on the east side of Columbus that could accommodate a user larger than 400,000 SF, underscoring the scarcity of bulk options across the market.

  • The east side of Columbus continues to have limited availability. The Etna submarket remains at 0% vacant, while the New Albany submarket dropped from 2.0% in the first quarter to 0.8% in the second quarter, even with 892,360 SF of speculative industrial product delivering in the first half of 2026.

SUBLEASE

  • Total sublease availability closed at roughly 1.8M SF at the end of the second quarter; this is up 12.8% QOQ.

  • In the second quarter, three sublease transactions were signed in the market, totaling 127,500 SF. All three were signed in Class A warehouse space, reflecting that even sublease tenants prefer quality product.

  • The Columbus industrial market has seen elevated leasing activity across new leases and renewals. Sublease space tells a different story. Despite limited direct space available, tenants are not turning to sublease space to fill that gap, even in Rickenbacker, where three subleases over 200,000 SF currently sit available. That submarket alone saw six direct leases over 200,000 SF signed in Q2, underscoring that tenants are choosing direct deals over available sublease options.

RENT

  • Average asking rents in the Columbus industrial market were $6.45 per square foot (/SF) in Q2 2026, representing a nominal 0.78% YOY increase. Overall asking rents remain relatively elevated across all product classes, reflecting the market's sustained tightness.

  • In the second quarter, a data center support group signed a lease for 215,280 SF over $12.00/SF, with otherwise standard market economics, including a tenant improvement allowance and standard rental escalations. This lease highlights how groups are competing for limited high-quality space in strategic locations, often paying a premium to secure space that meets their specific requirements.

  • A second-generation bulk building in the West Jefferson submarket had a new lease signed 84.7% above the rate from a lease executed in early 2021, underscoring the meaningful rental growth in the market, driven partially by dwindling bulk supply.

DEMAND

  • The second quarter of 2026 continued the strong leasing activity we've seen over the last several quarters. The market recorded 4.9M SF of gross leasing activity, up 13.5% QOQ, with 3.3M SF of that being new leasing, outpacing the 1.6M SF of renewal activity in the quarter.

  • Net absorption remained positive in Q2 2026, reaching 3.0M SF. Absorption was anchored by BTS project deliveries, which added 1.4M SF to the Rickenbacker submarket.

  • Axium Packaging acquired a newly constructed 255,000 SF building in the New Albany submarket. That is the third consecutive quarter that an owner-user has acquired a building larger than 200,000 SF in the greater Columbus market.

  • The New Albany submarket is continuing to see strong demand. This submarket saw 637,360 SF of product delivered this quarter, of that, only 14.6% or 93,439 SF remains available currently.

  • Six of the 10 largest leases signed in Q2 were in the Rickenbacker submarket. The largest was a 972,160 SF renewal at 9570 Logistics Court, south of Rickenbacker Airport.

CONSTRUCTION

  • Developers are currently constructing roughly 4.9M SF of product across the market, with projects underway in eight submarkets.

  • The market saw 1.3M SF of construction starts in Q2, the most in a quarter since Q3 2025. Looking ahead to Q3 2026, construction starts and the pipeline are expected to increase significantly.

  • The 1.3M SF of construction starts was spread across five speculative projects. Building sizes range from 144,000 SF to 364,230 SF. New Albany saw 666,630 SF of new construction starts, the most of any submarket.

  • The market saw 3.0M SF of completions in Q2. Two of the larger buildings delivered in Q2 were BTS projects; an 864,000 SF building for ODW Logistics and a 511,378 SF building for BJ’s Wholesale Club. Both buildings are in the Rickenbacker submarket.

  • The pipeline will likely see five new construction starts next quarter of buildings larger than 700,000 SF. Four of these projects are in the Rickenbacker submarket, with the other in the Etna submarket. These projects are coming on at a time when availability of space that size is minimal, which could lead developers to expedite construction timelines to capture a market with limited competition.

Continue reading this report via the below PDF link.

AUTHOR

A young man with short brown hair, wearing a light blue button-up shirt, stands against a plain light gray background and smiles slightly at the camera.

Cade Crawford