Q2 2026 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.

Industrial Market Update

Speculative construction returned to the Columbus industrial market during the second quarter as continued tenant demand absorbed much of the previous development cycle's inventory, reinforcing market fundamentals and supporting a new wave of speculative development.

Market Trends

• The Columbus industrial market recorded 3.3 million square feet of positive net absorption during the second quarter, reducing the direct vacancy rate slightly to 5.00%. 

• Vacancy compression was moderated by the completion of three speculative buildings totaling  926,440 square feet that delivered without pre-leasing.

• In addition, approximately 1.6 million square feet of absorption resulted from three tenants occupying newly completed facilities rather than existing vacant space.

• Improving fundamentals prompted a significant increase in speculative development activity. Sixteen speculative projects totaling approximately 7.4 million square feet broke ground during the quarter, marking the strongest pace of speculative construction since 2022. 

• The current pipeline spans a broad range of building sizes, including a notable increase in projects exceeding 600,000 square feet.

• Construction deliveries also accelerated, with 3.1 million square feet completing during the quarter, including the ODW Logistics build-to-suit facility in the Southeast submarket and the Amgen expansion in Licking County.

• Approximately 92% of industrial space delivered since 2022 is now occupied or under lease, with stabilization averaging 16.4 months.

  
  

Forecast

Speculative construction activity accelerated significantly during the second quarter, with 16 projects breaking ground and adding nearly 7.4 million square feet to the Columbus industrial pipeline. The surge represents the strongest pace of speculative development since the market expansion of 2021–2022.

The increase reflects continued tightening in the modern bulk market. Occupiers have steadily absorbed inventory delivered during the previous development cycle, reducing modern bulk vacancy and leaving few large-block options available.

Although speculative construction has accelerated, the pipeline is below the levels reached during the 2021-2022 expansion. Assuming tenant demand remains near recent levels, the market appears positioned to absorb upcoming deliveries without materially increasing vacancy.

The composition of the current pipeline also reflects changing market needs. After several quarters in which developers favored smaller speculative projects, construction activity has shifted back toward larger modern bulk facilities, indicating renewed confidence in demand for regional distribution and advanced manufacturing users.

Early leasing activity also points to continued momentum heading into the second half of the year. The number of active bulk tenant requirements has increased in recent months. As those requirements translate into executed leases, additional speculative construction is likely as developers continue replenishing limited modern bulk inventory.

Absorption & Leasing

Net absorption totaled 3.3 million square feet during the second quarter, continuing the steady absorption of recently delivered industrial inventory. Activity was concentrated in the Licking, Madison, Southwest, and Pickaway submarkets, while most large occupancies ranged between 100,000 and 400,000 square feet, reflecting sustained demand among mid-sized users.

Leasing activity remained consistent with the first quarter, totaling 6.3 million square feet. New leases accounted for 65% of transaction volume, with the Southeast submarket representing 37% of new leasing activity. Continued leasing activity has reduced available modern bulk inventory, creating opportunities for a new wave of speculative development.

Vacancy & Market Rents

The total market vacancy rate held at 5.00% during the second quarter, declining 2.5% year-over-year. Vacancy compression was moderated by two factors. Three speculative buildings delivered without pre-leasing, adding 926,440 square feet of vacant inventory to the market. Additionally, 1.6 million square feet of positive absorption came from three tenants occupying newly completed facilities that were fully leased prior to delivery resulting in a neutral impact on the vacancy rate.  

Vacancy continued to tighten across several key segments of the market. Buildings between 400,000 and 600,000 square feet recorded the largest improvement, with vacancy declining 0.59% quarter-over-quarter. The Southwest and Pickaway submarkets also posted the strongest declines, each improving approximately 1.5%.

Reduced availability supported additional rent growth, lifting the average asking rate to $6.71 NNN, while modern bulk asking rents increased to $7.25 NNN.

Sales Activity

Transaction volume moderated during the second quarter following an exceptionally active end to 2025 and first quarter of 2026. Pricing remained resilient despite a slower pace of transactions averaging $109.95 per square foot.

Institutional acquisitions accounted for much of the quarter's dollar volume, while owner-users remained active in smaller industrial properties, highlighting healthy demand across both investment and owner-occupied segments.

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Check out the full Q2 2026 Industrial Trends report here!

Q2 2026 Industrial Trends