Q3 2026 OFFICE MARKET UPDATE
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 third quarter with strong fundamentals, highlighted by substantial leasing and owner-user deals across the market. Continued leasing and absorption momentum to close 2026 will depend on prominent tenants continuing to execute larger deals, particularly in Class A assets, as flight to quality persists throughout the region.
Market Trends
At the close of the third quarter, the Columbus office market continued to improve as absorption exceeded quarter-over-quarter and year-over-year totals at 209,262 square feet.
Vacancy decreased notably to 18.72%, with reductions seen across most submarkets. Class A properties saw a pronounced decrease in vacancy, especially for office buildings located in suburban Columbus, as users occupied large blocks of space.
Net absorption increased in Q3 to 209,262 square feet, which was influenced by Worthington Steel fully occupying 3344 Morse Crossing in Easton.
There was over one million square feet of leasing activity in Q3, including both new deals and renewals, as users signed for larger deals than seen in recent quarters. Leasing demand was concentrated in the Dublin and CBD submarkets, accounting for about half of transaction activity, showing that tenants are still seeking space in amenity-rich submarkets.
Market rents increased to $21.53 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.
Absorption & Leasing
The Columbus office market recorded over one million square feet of leasing activity for the second quarter in a row, showing sustained leasing momentum. The Ohio State University Moritz College of Law signed the largest new deal of the quarter for 193,551 square feet at 17 S High Street in the CBD. Accenture signed the largest renewal and expansion, leasing 44,304 square feet at 400 W Nationwide Boulevard in the Arena District. Deals in Dublin and the CBD accounted for 46.22% of transaction activity, with Dublin reaching a majority share of deals at 26.60%.
Net absorption reached 209,262 square feet in the third quarter, largely influenced by Worthington Steel occupying 3344 Morse Crossing in Easton for 135,485 square feet of positive absorption, as Easton saw a 3.65% quarter-over-quarter decrease in vacancy. Absorption was also influenced by OneCompass Holdings’ occupancy of 32,800 square feet at 5900 Parkwood Place in Dublin. Class A buildings in Dublin saw 101,099 square feet of positive absorption as other tenants moved to the submarket. Positive absorption was concentrated in Class A assets this quarter, totaling 230,161 square feet.
Vacancy & Market Rents
The Columbus vacancy rate decreased moderately to 18.72% in the third quarter. The downtown/urban core saw a modest increase in vacancy, while the suburban submarkets saw moderate decreases as tenants occupied space.
Average asking rents increased modestly to $21.53 per square foot due to large blocks of space at a few buildings, such as 5500 Glendon Court in Dublin, being listed. Easton remained as the top rent submarket with average direct asking rents across Class A and B assets reaching $24.79 per square foot, while rents in the CBD climbed to $23.19 per square foot. Rents for CBD assets have elevated urban Class A asking rates as more space has been listed at buildings such as 280 North High Street which is undergoing renovations. Leased space in higher-quality Class A assets, particularly in Easton and Dublin, has lowered average asking rates, leaving lower-quality inventory still on the market to carry the decreasing suburban average. As demand for this space remains, rates may increase in subsequent quarters.
Sales Activity
Sales activity decreased moderately in the third quarter, as sales volume was $66.29 million and pricing averaged to $131.85 per square foot. The largest transaction of the quarter was OhioHealth’s $22 million acquisition of 4960 E Dublin Granville Road in New Albany. Owner-users are active market participants especially when local communities offer incentives for building sales, such as the City of Dublin offering incentives for Ruscilli’s purchase of 5450 Frantz Rd. Office buildings with large blocks of vacancy, such as 200 E Campus View Boulevard in Worthington are still trading at low market price per square foot as investors gauge redevelopment options or opportunities to amenitize, as seen with 88 E Broad Street trading last quarter.
Investor engagement slowed in the third quarter, while owner-user activity increased. OhioHealth purchased two buildings in the third quarter, including a site at 4079 Gantz Rd, where OhioHealth had a preexisting lease. As uncertain lending conditions in the capital markets persist, investment sales may decrease to close out 2026, though opportunistic owner-occupants could capitalize on lower market pricing for office buildings as the Columbus market grows and continues to be attractive to new business.
Check out the full Q3 2026 Office Trends report here!
Comments