Q3 2026 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.
Market Trends
Retail vacancy increased modestly to 3.2% during the third quarter, partially reflecting changes to the market's tracked inventory. Despite the increase, tenant move-ins generated 18,199 square feet of positive absorption, led by activity in Polaris as Boot Barn and Homesense occupied space at Polaris Towne Center.
Retail investment activity accelerated during the third quarter, with sales volume reaching $137.2 million. The quarter's largest transaction was the $11.4 million sale of the Speedway at 10085 Outville Road in Kirkersville.
Leasing activity remained healthy across a range of retail formats, with four transactions exceeding 30,000 square feet during the quarter. BidFTA signed the largest new lease, taking 55,096 square feet in Westerville.
Construction activity increased during the third quarter, with eight projects totaling 50,293 square feet breaking ground. Development remains concentrated in growing suburban communities, particularly Hilliard and Licking County, as residential expansion continues to support demand for neighborhood-serving retail.
Construction Activity
Retail development activity increased during the third quarter, with six buildings totaling 47,616 square feet delivering. The largest completion was 5065 Forest Drive in New Albany, which delivered fully leased to Graeter’s Ice Cream, Dermatologists of Southwestern Ohio, First Bank of Central Ohio and NovaCare.
Eight projects totaling 50,293 square feet broke ground during the quarter, bringing the active construction pipeline to approximately 138,000 square feet. Development remains concentrated in suburban communities, with Hilliard and Licking County accounting for 40% of space underway. Freestanding and storefront projects represent more than half of the active pipeline, while 74% of space under construction is committed, including build-to-suit and owner-user projects.
Check out the full Q3 2026 Retail Trends report here!
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