Q2 2026 OFFICE MARKET UPDATE
- Colliers | Columbus
- 3 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 second quarter with stable fundamentals, signaling a shift toward greater market confidence. Continued leasing momentum throughout the second half of 2026 will depend on prominent tenants seeking larger deals, particularly in Class A assets, as flight to quality persists throughout the region.
Market Trends
At the close of the second quarter, the Columbus office market remains stable.
Vacancy remains elevated with the market rate increasing slightly to 19.21%. Class B properties saw a slight decrease in vacancy, especially for office buildings located in urban Columbus.
Net absorption remained slightly positive, totaling 645 square feet in Q2, which was influenced by a large multi-tenant renovation project at a building in the Grandview Yard.
There was over one million square feet of new leasing activity in Q2, driven by an increase in larger transactions that reflected growing confidence in office opportunities across the market. Leasing demand was concentrated in the CBD and Dublin submarkets, accounting for about half of transaction activity as tenants favored well-located, amenity-rich submarkets.
Market rents decreased to $21.31 per square foot and have hovered near the $21 mark since mid-2023.
The construction pipeline remains modest at 306,036 square feet and is concentrated in the CBD, Dublin and Hilliard. A 15,900-square-foot building at the Truepointe Development in Hilliard was completed.
Absorption & Leasing
The Columbus office market recorded over one million square feet of new leasing activity in the second quarter, which is 350,000 more square feet than was recorded in the first quarter. A confidential tenant signed the largest new lease of the quarter for 42,826 square feet at 5525 Parkcenter Circle in Dublin. M/I Homes signed the largest renewal, leasing 64,683 square feet at 4131 Worth Avenue in Easton. Deals in the CBD and Dublin accounted for 41.34% of transaction activity.
Negative absorption reached 347,536 square feet, largely influenced by Nationwide Realty Investors renovating 1050 Yard Street in Grandview for multi-tenancy, as Arlington/Grandview saw a 2.33% quarter-over-quarter rise in vacancy. Absorption was also influenced by Columbia Gas’ occupancy of 50,000 square feet at 175 W Nationwide Boulevard in the Arena District and numerous move-ins throughout Grandview Yard, such as Plante Moran occupying 29,000 square feet at 995 Yard Street. Worthington saw 39,716 square feet of positive absorption, which was driven by a few moderately-sized move-ins. Positive absorption was concentrated in Class B assets this quarter, totaling 44,366 square feet.
Vacancy & Market Rents
The Columbus vacancy rate increased slightly to 19.21% in the second quarter. The Worthington submarket saw a 1.65% decrease in vacancy, while most submarkets saw modest changes.
Average asking rents decreased moderately to $21.31 per square foot, due to space at a few large buildings, such as 180 E Broad Street, being unlisted due to the building entering receivership. Easton remained as the top rent submarket with average direct asking rents across Class A and B assets reaching $26 per square foot, while rents in Arlington/Grandview climbed to $23.62 per square foot. Rents for Grandview Yard assets have elevated urban Class A asking rates as more space has been listed. Leased space in Class A assets, such as those in Bridge Park and throughout Dublin, decreased rates across the suburban submarkets. As demand for this space remains, rates may increase in subsequent quarters.
Sales Activity
Sales activity increased sharply in the second quarter with total transaction volume reaching $97.70 million and pricing averaging $142.88 per square foot, which are the highest values seen in a year. The largest transaction of the quarter was the $60 million acquisition of the mixed-use development, Pointe at Polaris. The sharp increase in sale price per square foot demonstrates that desirable office and mixed-use properties are trading in the market, especially within suburban submarkets. This trend also suggests that investors are selecting well-occupied and stabilized assets.
Investor engagement increased in the second quarter, which is highlighted by DFW Land Real Estate’s acquisition of the Pointe at Polaris, along with the Ohio Department of Taxation building trading to a private investor. Owner-user activity slowed quarter-over-quarter, though smaller acquisitions such as Title Connect Agency purchasing 5980 Venture Drive in Dublin show continued demand for properties amenable to single tenant uses. Improving lending conditions in the capital markets may support continued investment sales through 2026, although price per square foot and sales volume may stabilize as market participants adopt a more disciplined approach.
Check out the full Q2 2026 Office Trends report here!