H2 2025 MARKET IN MOTION | INDUSTRIAL MARKET UPDATE

Written by: Stephanie Morris

Stephanie specializes in research capabilities, providing support for the Colliers Columbus Office, Industrial and Retail groups. She is responsible for executing data reports, maintaining a commercial property database, reporting quarterly trends, performing data analysis and utilizing statistical information to predict future behavior in the market. Keep reading for her take on market trends in the Columbus industrial sector for the second half of 2025.

Market in Motion | H2 2025 Industrial Report

In our newly released Market in Motion | H2 2025 report, we take a deeper look at:

• Supply and demand dynamics as absorption once again outpaced new deliveries

• Construction activity and the implications of a thinner forward pipeline

• Vacancy trends by building size and vintage, with a focus on modern bulk product

• Transaction activity and the role large users continue to play in lease volume
  

The data suggests the recent vacancy expansion was cyclical rather than structural and that the market is increasingly exposed to near-term supply constraints.

Supply & Demand and Construction Activity

After the delivery peak in 2022–2023, speculative construction starts slowed materially, and the forward pipeline remains thin relative to historical absorption. At the same time, tenant demand has returned to levels consistent with long-term averages.

This combination has pushed absorption ahead of new supply throughout 2025, reversing the vacancy expansion seen in prior years and increasing the risk of a near-term supply gap particularly for modern bulk facilities.

Vacancy Analysis

While overall vacancy moderated in 2025, modern bulk vacancy declined at a faster pace as speculative deliveries slowed and recently delivered first-generation space leased more quickly than historical norms.

The 2023 vacancy spike now appears cyclical rather than demand-driven, with much of that space absorbed as the development pipeline thinned. This divergence has meaningful implications for lease-up risk and future availability in well-located submarkets.

Transaction Activity

While the number of completed leases moderated from recent peaks, total leasing volume increased year-over-year, driven by larger users absorbing a meaningful share of limited first-generation availability. At the same time, activity in the 100,000–400,000 square foot range remained healthy, signaling broad-based demand rather than reliance on a small number of outliers.

This balance between fewer transactions and sustained volume reinforces the depth of occupier demand as new supply remains constrained.

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Check out the full H2 2025 Market in Motion Industrial Trends report here!

H2 2025 Market in Motion