Q2 2025 RETAIL MARKET UPDATE
- Colliers | Columbus
- Jul 28
- 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 boosted to reach 97 percent
The market recorded 73.4K SF of positive absorption signaling sustained demand for retail space
Deliveries consisted of storefront and convenience store developments, adding 30.8K square feet to the market
Regional Summary
The Columbus retail market maintained positive momentum in the second quarter, recording positive net absorption for the third consecutive quarter. Overall vacancy declined to 2.72%, reflecting steady demand across the market.
Big Lots signed the largest lease of the quarter, renewing 51,476 square feet at 6300 E Livingston Avenue in the Reynoldsburg submarket. The largest new lease was signed by Habitat for Humanity ReStore, which leased 29,667 square feet at 5387–5445 Roberts Road in Hilliard.
Retail investment activity slowed, with sales volume decreasing to $94.7 million and an average price of $145 per square foot. Notably, Phillips Edison & Company acquired Oak Creek Center in the Lewis Center submarket for $20.3 million.
Development activity saw an uptick with the groundbreaking of the Kroger Marketplace in Powell, though speculative construction remains limited. As tenant demand stays elevated and new supply remains constrained, the market continues to experience a shortage of high-quality retail space.
Overall, tenant demand remains strong, particularly for prime locations throughout the metro. With a growing population and limited new supply, Columbus is positioned to maintain balanced fundamentals.
Under Construction
Retail development activity increased in Q2, led by the groundbreaking of a Kroger Marketplace in Powell totaling 123,000 square feet. Construction also began at two speculative projects, adding 18,374 square feet to the pipeline. Total square footage under construction increased to 458,439, a 30.4% rise quarter-over-quarter.
Development activity remains concentrated in high-growth suburban areas, with 69% of all projects located in the Hilliard, Grandview and Powell submarkets. The current pipeline includes a diverse mix of property types, though 72% of total square footage is concentrated in supermarket, storefront, and health club developments, highlighting strong interest in everyday goods and neighborhood services.
Check out the full Q2 2025 Retail Trends report here!