Q3 2025 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 remained stable in the third quarter, with vacancy unchanged and net absorption slightly negative at 6,173 square feet. Persistently low vacancy continues to limit leasing options and constrain overall activity.

New leases dominated the top transactions this quarter. Ohio Thrift Stores signed the largest lease of the quarter, leasing 42,327 square feet 159-193 S Sandusky Street in the Delaware submarket.

Retail investment activity increased in the third quarter with sales volume reaching $127.4 million. Notably, ASB Property Management acquired MedVet Hilliard at 4050 Britton Parkway for $13.6 million.

Retail construction moderated in Q3 as key projects delivered and one major redevelopment paused, reducing total space under construction to 287,465 square feet.

As tenant demand stays elevated and new supply remains constrained, the market continues to experience a shortage of high-quality retail space.

Under Construction

Retail development activity decreased in Q3, led by The Well health club delivering in Hilliard. Additionally, construction paused on the Golden Bear Center redevelopment as Arcadia Development expands the scope of the project. Construction began at eight speculative projects, adding 59,809 square feet to the pipeline, two of which are Lightbridge Academy locations. Their expansion underscores growing demand for family-oriented service uses within retail corridors.

Development activity remains concentrated in high-growth suburban areas, with 71% of active projects located in the Powell and Hilliard submarkets. The pipeline is dominated by supermarket, storefront and mixed retail/office properties, which together represent 85% of total square footage and highlight continued demand for neighborhood-serving retail formats.

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Check out the full Q3 2025 Retail Trends report here!

Q3 2025 Retail Trends