Q4 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 ended 2025 with positive absorption and a declining vacancy rate, extending the market’s multi-year tightening trend. Persistently low vacancy and limited speculative supply constrained overall market activity.
According to CoStar, Columbus ranked 10th among the top U.S. retail markets in 2025, outperforming most Midwest peers and ranking alongside high-growth Sun Belt markets. Ranking was determined based on occupancy rates, availability, market rent growth, and change in sales volume.
Retail sales activity increased again in the fourth quarter with sales volume reaching $155.1 million with an average price per square foot of $312.56. Notably, W.P. Carey acquired the Life Time Fitness at 3825 Hard Road for $24.8 million.
Wayfair signed the largest lease of the quarter, backfilling 69,662 square feet in the former Art Van Furniture space in Polaris, highlighting continued demand for well-located second-generation space.
Retail construction moderated in Q4 as key projects delivered reducing total space under construction to 233,108 square feet.
Construction Activity
Retail development activity slowed in Q4 as several projects delivered, reducing the amount of space under construction. Notable completions included the Kroger Marketplace in Powell, along with two speculative projects at 5755 North Hamilton Road and 1023 Columbus Avenue.
Construction began on eight projects totaling 81,356 square feet, partially offsetting deliveries but keeping the overall pipeline limited. Development activity remains highly concentrated in high-growth suburban submarkets, with 62% of active projects located in Powell, Hilliard, and New Albany. The pipeline continues to be dominated by storefront and storefront/office properties, which account for 60% of total square footage and reinforce developer preference for neighborhood-serving retail formats.
Check out the full Q4 2025 Retail Trends report here!
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