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MidwestOhioOffice

Columbus office market nets fifth straight quarter of positive net absorption

Dan Rafter July 23, 2026
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iStock photo credit, Sean Pavone.

The Columbus, Ohio, office market isn’t booming, but it is making progress when it comes to vacancies.

That’s one of the big takeaways from Newmark’s second-quarter 2026 Columbus office report. According to this recently released report, the Columbus office market posted its fifth consecutive quarter of positive net absorption during the second quarter, a sign that tenant demand continues to outpace the amount of space being vacated.

The market recorded 68,171 square feet of positive net absorption during the quarter, bringing the year-to-date total to 179,294 square feet. That steady leasing activity helped push the overall vacancy rate down 30 basis points from the previous quarter to 20.3%, continuing a gradual decline in the amount of empty office space here that began more than a year ago.

Not all submarkets in the Columbus area are performing equally, though. As Newmark’s report says, the recovery remains largely a suburban one.

Suburban office submarkets accounted for 71,465 square feet of positive absorption during the quarter, while downtown Columbus posted negative absorption of 3,294 square feet. The central business district especially continues to face higher vacancy rates and a steadier stream of tenant departures, while suburban office properties with modern amenities are attracting a greater share of leasing activity.

Limited new construction is also helping stabilize market fundamentals. No new office buildings were delivered during the first half of 2026, and only 195,048 square feet remain under construction, representing just one-half of 1% of the market’s total inventory. Newmark says that developers are still waiting for office vacancy levels to fall further, with several planned projects postponed because of weak demand and rising construction costs.

While occupancy continues to improve, leasing activity remains below historical norms. Columbus recorded 620,323 square feet of office leasing during the second quarter, about 20% below the market’s 16-year second-quarter average. Through the first six months of 2026, leasing volume totaled approximately 1.1 million square feet, trailing the same period a year earlier by roughly 11%. According to Newmark, the market would need a significant acceleration in leasing activity during the second half of the year to reach its long-term annual average.

Even with leasing activity remaining somewhat subdued, landlords have continued to maintain their pricing power. Average asking rents held steady at $23.13 per square foot during the second quarter, representing year-to-date growth of 4.1%. Newmark noted that asking rents have now increased in 13 of the last 16 years and stand roughly 41% above 2010 levels, reflecting continued demand for higher-quality office space despite broader workplace changes.

Investment sales, however, continue to paint a mixed picture. Average office sale prices climbed to $104 per square foot during the quarter, but that figure was heavily influenced by the $60.2 million sale of The Pointe at Polaris. Excluding that transaction, average pricing falls to about $57 per square foot, underscoring the cautious investment environment that has characterized Columbus since 2025. One notable downtown sale illustrated those challenges: 88 E. Broad St. sold for $5.1 million, or $20.15 per square foot, less than half of its previous sale price four years earlier.

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