Q1 2026 OFFICE MARKET UPDATE
- Colliers | Columbus
- 10 minutes ago
- 3 min read
Written by: Jake Lord
Jake specializes in research capabilities, providing support for the Colliers Columbus Office, Industrial, Retail and Capital Market groups. He 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 his take on market trends in the Columbus office sector.
Office Market Update
Columbus closed the first quarter with strong positive absorption, signaling a shift toward stabilized market fundamentals. Continued momentum into 2026 will depend on leasing velocity in Class A assets, particularly for the suburban submarkets, as flight to quality persists throughout the region.
Market Trends
At the close of the first quarter, the Columbus office market continued to show signs of improvement.
Vacancy remains elevated with the market rate rising to 19.18%. Class A properties recorded a nearly 1% drop in vacancy despite decrease in inventory, displaying persistent flight to quality.
Net absorption remained positive, totaling 241,167 square feet in Q1, which was supported by numerous move-ins and a headquarters occupancy in Hilliard.
There was nearly 645k square foot of leasing activity in Q1. Leasing demand was concentrated in the CBD, Worthington, and Dublin submarkets, accounting for well over half of transaction activity as tenants favored well-located, amenity-rich submarkets.
Market rents held steady at $21.83 per square foot and have hovered near the $21 mark since 2023.
The construction pipeline remains modest at 184,928 square feet concentrated in the CBD and Dublin. The Advanced Drainage System headquarters building delivered, adding 98,350 square feet of Class A space to the Hilliard submarket.
Absorption & Leasing
The Columbus office market recorded 645K square feet of new leasing activity in the first quarter. Copper Run Capital signed the largest new lease of the quarter for 1165 Dublin Rd square feet at 1165 Dublin Rd in Grandview. Kegler, Brown, Hill & Ritter Co. signed the largest renewal, leasing 52,233 square feet at 65 E State Street in the CBD. Deals in the CBD and Worthington accounted for 46.7% of transaction activity, with Dublin accounting for 15.22%.
Net absorption remained positive totaling 241,167 square feet, as there were a substantial amount of large and small move-ins. Absorption was influenced by Advanced Drainage Systems’ occupancy of 98,350 square feet at 4024 Green Strip Lane at the Hilliard TruePointe Development. Dublin and Arlington/Grandview also saw high absorption figures, with 50,252 and 29,697 positive square feet, respectively, driven by a few moderately-sized move-ins. Positive absorption was concentrated in Class A assets totaling 240,582 square feet. A few Class B move-outs tempered overall net absorption.
Vacancy & Market Rents
The Columbus vacancy rate increased to 19.18% in the first quarter due to changes in building inventory, mostly reflected by elevated Class B vacancy. In contrast, Class A saw a 0.7-point drop in its vacancy rate as tenants occupied this space throughout Dublin, Arlington/Grandview, and the CBD. The Gahanna/Airport submarket saw a 1.88% decrease in vacancy, as 81 Mill Street, for instance, saw two move-ins totaling over 10,000 square feet.
Average asking rents decreased modestly to $21.83 per square foot. New Albany and Easton remained as top rent submarkets with average direct asking rents across Class A and B assets reaching over $24 per square foot. Suburban Class A space stood out with the highest rents, also totaling over $24 per square foot, as tenants seek highly-amenitized assets in areas like Polaris and Bridge Park. Urban Class A space rents are about $2 less than the suburban counterpart, at $22.91 and $24.30 per square foot, respectively.
Sales Activity
Sales activity decreased sharply in the first quarter with total transaction volume reaching $27.36 million and pricing averaging $114.00 per square foot. The largest transaction of the quarter was the $5 million acquisition of the 4798 Rings Road property in Dublin. The moderate increase in sale price per square foot suggests limited listings in quarter one, as sellers showed greater discipline and hesitation in moving assets. This trend also suggests that buyers were mainly focused on smaller acquisitions, whereas larger movers did not emerge in the market.
Medical users were some of the prominent buyers in the market, including OhioHealth and Medsave Urgent Clinic, as these entities purchased smaller office assets. Owner-user activity has supported occupancy levels throughout the Columbus market going back to 2025, outpacing investments. Investment activity has mainly centered around smaller properties, such as the 383 N Front Street building, after seeing greater activity in early 2025. Eased lending conditions on the capital markets side may facilitate greater investment sales going further into 2026.
Check out the full Q1 2026 Office Trends report here!