The Columbus industrial market closed out 2025 with steady momentum, buoyed by healthy leasing activity, declining vacancy rates and continued interest from both occupiers and investors, according to Lee & Associates’ fourth-quarter 2025 Columbus Industrial brief.
Leasing demand across Central Ohio remained strong throughout the final months of the year, driven primarily by logistics and manufacturing users. Lee & Associates reported that large occupier move-ins helped support positive absorption, while interest in modern distribution facilities stayed consistent even as national industrial markets showed signs of cooling.
Vacancy continued to trend downward in Columbus, a reflection of limited new supply and tenants’ ongoing appetite for well-located, Class-A product. That tightening has helped sustain competitive conditions for high-quality space, particularly in established logistics corridors and emerging submarkets.
Construction activity, however, pulled back modestly from earlier in the year. Developers slowed the pace of new starts, with fewer speculative projects breaking ground and a growing emphasis on build-to-suit development. Nearly half of the industrial construction underway at year-end was speculative, according to the report, signaling a more measured approach by developers after several years of rapid expansion.
Several high-profile projects moved forward in the fourth quarter. TPA Group kicked off a freezer and cooler build-to-suit facility for T. Marzetti on Columbus’ west side. Core5 Industrial Partners began construction on a three-building speculative development east of Bath & Body Works’ headquarters along Taylor Road. Hillwood, Trident Capital and VanTrust were all well underway on speculative projects totaling roughly 300,000 square feet each.
Development activity also remained robust in New Albany, where Tenby Partners continues to be an active player. The firm also recently delivered a 130,000-square-foot industrial project in Mill Run. VanTrust is nearing completion of its BJ’s Wholesale project, while Leveck and Trident Capital have delivered speculative buildings measuring 255,000 square feet and 191,000 square feet, respectively.
Investment sales activity remained active through the end of 2025, with investors targeting stabilized, income-producing industrial assets across key Central Ohio submarkets. Notable transactions included Crawford Hoying’s sale of the 1.28-million-square-foot Scotts Miracle-Gro facility in Union County. Brookfield acquired the Quaker PepsiCo project from Granite REIT, while Pinchal & Co. divested three industrial buildings to NorthPointe Development.
Additional property transfers involved Olympus Ventures, Tenby Partners, Smith Lane Properties and Pinchal & Co., which sold assets to various owner-occupiers seeking long-term operational control in the region.
On the leasing front, several large transactions underscored the depth of demand in the market. Crane Worldwide Logistics secured 1.2 million square feet in a speculative project in Commercial Point. Meta was also active, leasing Link Logistics’ 737,000-square-foot former Zulily facility with DHL Supply Chain, as well as VanTrust’s 300,000-square-foot speculative project currently under construction in New Albany. Molto reached full occupancy at its Canal Winchester development after logistics firm DSV signed on as a tenant.
Looking ahead to 2026, Lee & Associates expects limited new supply and sustained tenant demand to keep upward pressure on rental rates, particularly for Class-A industrial space. With competition expected to remain intense, the firm noted that early planning will be essential for occupiers targeting high-performing facilities in strategic locations across the Columbus region.
