Q1 2026 RETAIL 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 retail sector.

Regional Summary

The Columbus retail market began 2026 with negative absorption and a modest increase in overall vacancy, which surpassed 3% for the first time in roughly two years. The closures of Saks Fifth Avenue at Polaris and Esporta Fitness in Hilliard drove the majority of first-quarter vacancy movement, resulting in 250,445 square feet of negative absorption.

Retail investment activity slowed in the first quarter, with total sales volume declining to $86.0 million. Despite lower volume, the average price per square foot increased to $361.67, indicating continued investor demand for well-located, stabilized assets. Notably, Core Equity Partners acquired 8110-8200 E Broad St for $8.9 million. The center is anchored by Ross Dress for Less and shadow-anchored by Target and Meijer.

Leasing activity was highlighted by Hobby Lobby’s 52,368-square-foot lease at Easton, backfilling a former Joann Fabrics space and underscoring continued demand for second-generation space in established retail corridors.

Construction activity moderated during the quarter, with two projects breaking ground. New development remains concentrated in growth submarkets, including New Albany, Powell, and Hilliard.

Construction Activity

Retail development activity slowed in Q1, with several projects under 10,000 square feet delivering. Notable completions included 10726 Sawmill Parkway in Powell, as well as Buildings A and B at Alton Place in Hilliard.

Construction commenced on two projects totaling 14,000 square feet. Space currently under construction is 72% pre-leased, reflecting continued tenant demand for new, well-located product.

Development activity remains concentrated in high-growth suburban submarkets, with 44% of active projects located in New Albany, Powell, and Hilliard. The pipeline continues to be dominated by storefront and mixed storefront/office properties, which account for 45% of total square footage and underscore developer preference for neighborhood-serving retail formats.

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Check out the full Q1 2026 Retail Trends report here!

Q1 2026 Retail Trends