Q1 2025 RETAIL MARKET UPDATE
- Colliers | Columbus
- May 1
- 2 min read
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 retail sector.
Key Takeaways
The retail occupancy rate remains above 96 percent
The market recorded 97.2K SF of positive absorption, which marks a 36% increase year-over-year
Most deliveries consisted of storefront and mixed-use developments, adding 111,728 square feet to the market
Regional Summary
The Columbus retail market continued its positive momentum in the first quarter, recording positive net absorption. Overall vacancy decreased to 3.58%, improving from 3.63% last quarter and 3.6% a year ago, reflecting continued demand stability. Demand for retail space remains strong, but limited new development has created a supply-demand imbalance, particularly for high-quality space. Tenants face constrained options as construction activity lags behind demand.
At the same time, broader economic pressures are influencing both consumers and retailers. Persistent inflation is dampening consumer spending and contributing to an uptick in store closures. While retail demand has been resilient in recent years, absorption levels may begin to normalize as market fundamentals adjust.
Renewals led the way among top transactions, including deals by Infinity 99 Cent Store, CVS Pharmacy, and Planet Fitness. The largest new lease of the quarter was signed by Crunch Fitness at 2875 Olentangy River Road in the Ohio State University submarket.
Construction slowed slightly in Q1, with 351,424 square feet underway, equivalent to 0.37 percent of total inventory. Still, investor confidence remains high, particularly for prime locations across the Columbus market. Limited new supply and a growing population position Columbus to maintain balanced market conditions, even as high interest rates present ongoing risks to consumer spending and new business formation.
Under Construction
Development activity in the Columbus retail market is off to a slow start in 2025. Total square footage under construction is down 45% year-over-year, while construction completions have declined 24%. Elevated construction financing costs continue to hinder new starts, contributing to the overall slowdown.
The most notable project underway is The Well, a new recreational center in Hilliard. Much of the new space coming online is part of mixed-use developments, aligning with the national trend toward integrated work-and-play environments. Key projects currently under construction include the Golden Bear Redevelopment and TruePointe, both of which are designed to blend retail with residential and office components. Forty-seven percent of all retail construction activity is concentrated in the Hilliard and Delaware submarkets, reflecting continued growth and demand in these suburban areas.
Check out the full Q1 2025 Retail Trends report here!
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