WHAT'S HAPPENING IN THE COLUMBUS OFFICE MARKET? Q1 2025

Written by: Collin Fitzgerald & Stephanie Morris

Collin and Stephanie specialize in research capabilities, providing support for the Colliers Columbus Office, Industrial and Retail groups. They are 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 their take on market trends in the Columbus office and industrial sectors.

Tenant Migration - Where are Tenants Moving?

Tenants are constantly relocating their office space to suit their needs better. Using a points system based on signed square feet, we can track where office users are coming and going throughout the city. Check out our tenant migration heat map, and click around for more information on the movement within each submarket.

One of the most significant highlights from the Q1 2025 Tenant Migration Report is that the quarter's largest lease was a 128K square foot short-term renewal in the Dublin submarket. The largest new lease of the quarter was signed at the Worthington submarket. Dublin and Worthington were the hottest submarkets in Columbus, with the most new leases signed in Q1.

Moreover, the report reveals that 53% of tenants that signed new leases in Q1 were in Healthcare, Real Estate/Construction, and Business Services, indicating a strong presence and growth potential for these sectors within Columbus' office market.

High-Rise Report - What's Happening Downtown?

The Q1 2025 report highlights a nuanced perspective on Columbus' evolving downtown office landscape. The CBD submarket recorded a slight increase in vacancy rate to 15.13%, still outperforming the broader market's 18.58% vacancy rate. Negative absorption of 30,438 square feet in the CBD reflected slowed activity, though the market continues to see an upswing due to return to office mandates and tenant expansion.​

Construction activity is focused primarily on urban areas like the CBD and Arlington/Grandview. Key projects include the Scioto Peninsula redevelopment, Front and Fulton mixed-use buildings, the Gravity project, and the historic renovation of the Municipal Light Building. These developments, alongside spaces such as 80 on the Commons and North Market Tower, exemplify a growing preference for mixed-use, 'live, work, play' environments.​

Sublease Activity - Analysis of Office Sublease Space

In Q1 2025, sublease availability remained concentrated in suburban hubs, with Dublin, Easton, and Westerville particularly affected. Cardinal Health’s decision to vacate 5100 Rings Road added 406,000 square feet to Dublin’s inventory, while Upstart’s departure from 3075 Loyalty Circle contributed 240,000 square feet in Easton​.

Though sublease availability stabilized post-pandemic, Columbus continues to exhibit below-average rates compared to national metrics, underscoring unique local market dynamics and resilient demand in specific sectors.

Predictions

As 2025 continues, the return-to-office debate remains a focal point, with major corporations like Amazon, JP Morgan, AEP, and Wendy’s mandating full-time office attendance. This evolving landscape has also led to a rise in demand for move-in-ready spaces. Many companies that have downsized are now seeking more space, driving a reduction in available sublease inventory. Meanwhile, the push for office conversions is expected to reduce vacancies, particularly as landlords explore repositioning assets to meet housing or community demands.

Overall, these trends provide actionable insights for landlords, investors, and tenants seeking to navigate a transforming office environment in Columbus. The focus on adaptability, tenant experience, and mixed-use functionality will be crucial to future success in this market.

Check out our Q1 2025 Tenant Migration Report, High-Rise Reports, and Sublease Activity Report here!

Q1 2025 Reports