Q4 2025 OFFICE 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 office sector.

Office Market Update

Columbus closed the fourth quarter with improving occupancy and continued positive absorption, signaling a shift toward market stabilization. Sustained momentum into 2026 will depend on leasing-driven growth supplementing owner-user activity.

Market Trends

• At the close of the fourth quarter, the Columbus office market continued to show steady signs of improvement.

• Vacancy trended lower but remains elevated with the market rate declining to 17.57%. Suburban vacancy is concentrated in former single-tenant assets.

• Net absorption remained positive totaling 102,955 square feet in Q4, largely supported by owner-user occupancies that boosted headline fundamentals.

• Leasing demand was concentrated in the CBD and Dublin submarkets accounting for half of transaction activity as tenants favored well-located, amenity-rich submarkets.

• Market rents held steady at $21.87 per square foot and have hovered near the $21 mark since 2023.

• The construction pipeline remains modest at 184,928 square feet concentrated in the CBD and Dublin. The Galaxy at Polaris was the only project delivered this quarter, adding 12,762 square feet of Class A space to the Polaris submarket.

Absorption & Leasing

The Columbus office market recorded 464K square feet of new leasing activity in the fourth quarter. Columbia Gas signed the largest lease of the quarter for 49,431 square feet at 175 W Nationwide Boulevard in the Arena District. Fortis College signed the largest renewal, leasing 40,081 square feet at 4151 Executive Parkway in Westerville. Deals in the CBD and Dublin accounted for 50.6% of transaction activity.

Net absorption remained positive totaling 102,955 square feet. Absorption was influenced by owner-user activity, most notably EOG Resources’ occupancy of 175,000 square feet at 8111–8131 Smith’s Mill Road following its purchase in the prior quarter. Owner-user sales throughout 2025 have boosted occupancy figures. Positive absorption was partially tempered by the quarter’s largest move-out as Nationwide Realty Investors began renovating 10 W Nationwide Boulevard for multi-tenancy.

Vacancy & Market Rents

Columbus vacancy declined to 17.57% in the fourth quarter, improving 0.66% quarter-over-quarter. Vacancy compression was driven by a limited number of high-impact transactions rather than broad-based leasing. New Albany and North Central posted the largest absorption gains, signaling pockets of sustained tenant demand. New Albany recorded the most notable improvement, with vacancy falling 8.1% quarter-over-quarter following the owner-user sale and occupancy of 8111–8131 Smith’s Mill Road, underscoring the outsized influence of ownership activity on market metrics.

Average asking rents increased modestly to $21.87 per square foot. New Albany emerged as a top rent submarket with average direct asking rents reaching $24.54 per square foot. Class A properties sustained an approximate 11% rent premium over Class B assets, reflecting ongoing flight to quality demand.

Sales Activity

Sales activity remained flat in the fourth quarter with total transaction volume reaching $60.79 million and pricing averaging $67.10 per square foot. The largest transaction of the quarter was the $18.5 million acquisition of the five-building Officescapes portfolio in Worthington. While overall volume remains constrained, transactions of this scale suggest the investment sales market may be beginning to turn a corner heading into 2026.

Public-sector and owner-user purchases also played a role in market activity. The City of New Albany acquired the former Discover Building at 6500 New Albany Road with plans for the New Albany–Plain Local School District to lease a portion of the property. Owner-user transactions throughout 2025 have supported occupancy levels. In the fourth quarter, Rockford Homes purchased 440 Polaris Parkway and plans to relocate its headquarters from 999 Polaris Parkway with partial occupancy expected in the second quarter of 2026. While these transactions improve near-term fundamentals, investment volume remains constrained by pricing uncertainty and limited buyer appetite.

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Check out the full Q4 2025 Office Trends report here!

Q4 2025 Office Trends