By Derek Lichtfuss, Newmark
Columbus, Ohio, is emerging as one of the nation’s most dynamic industrial markets. With a strategic location, robust infrastructure and a diversified economy, the metro area is attracting industrial, manufacturing and logistics investment at a pace rivaling traditional coastal hubs.
According to Newmark Research, Columbus’ industrial market closed 2025 with positive absorption of 8.8 million square feet — ranking among the top five U.S. markets. Remarkably, the fourth quarter alone contributed more than 3 million square feet, marking the second consecutive quarter above that threshold.
The market’s fundamentals underscore its strength. Vacancy ended the year at 7.2 percent, down from 9.7 percent in 2024. Asking rents, while largely flat in 2025, have climbed for six consecutive years, reflecting steady demand. More than 5.2 million square feet are currently under construction, signaling developer confidence.
Drivers of growth
Several factors drive the city’s momentum. Columbus benefits from an exceptional logistics profile. The metro area can reach roughly 50 percent of the U.S. population within a one-day drive or train, bolstered by I-70, I-71 and the second-largest inland port at Rickenbacker International Airport. Its multimodal capabilities — including Norfolk Southern rail and cargo air — have made it a magnet for third-party logistics and distribution operators. Over 8 million square feet of leases executed in 2025 were tied to distribution, highlighting the region’s enduring role as a national logistics hub.
Data center development is another growth pillar. In the past year alone, developers purchased over 1,000 acres for new campuses, attracting AWS, Meta, Microsoft, Google and large colocation providers like QTS. Notably, Meta is constructing a 500-gigawatt natural gas plant to power its New Albany campus, reflecting the growing role of alternative energy sources in these facilities.
On the manufacturing front, Columbus is drawing national attention with mega-projects that combine economic scale with strategic incentives. The LG/Honda electric vehicle (EV) battery plant in Washington Courthouse, projected to generate more than 2,000 jobs, represents a $4 billion investment. Intel’s New Albany semiconductor facility, the largest economic development deal in Ohio history, could exceed $20 billion in investment and 3,000 jobs by 2030.
Perhaps most transformative in terms of projected job creation and defense production innovation is Anduril Industries’ “Arsenal-1” facility in Pickaway County, roughly 20 minutes southeast of Columbus near Rickenbacker Airport.
The Anduril project spans approximately 5 million square feet on 500 acres, with a total investment approaching $1 billion. It is expected to create more than 4,000 direct jobs and roughly 6,000 to 10,000 regional jobs when indirect employment is included. Anduril’s facility will produce autonomous air vehicles, cruise missiles, counter-drone interceptors, AI-powered surveillance platforms and integrated robotics systems. Described as a “hyperscale defense manufacturing hub,” it consolidates design, production and testing in a single location — an innovative approach in U.S. defense manufacturing.
Economic fundamentals
Public-private collaboration has been central to the recent manufacturing initiatives. Ohio structured large-scale incentives as “pay-for-performance” deals, including a $310 million JobsOhio grant and an estimated $450 million in tax credits tied to job creation and payroll milestones.
Additional site preparation and workforce development funding support project success while mitigating state risk. These agreements require adherence to hiring and investment targets over decades, reflecting the scale and long-term commitment of these developments.
Columbus’ broader economic profile reinforces industrial demand. The metro area, home to 2.25 million residents, recently surpassed San Francisco as the 14th largest U.S. city, with population growth projected at 1.2 percent annually over the next decade — double the national average.
The cost of living remains relatively low compared with other major metros, supporting workforce attraction and retention. Unemployment hovers between 3.8 percent and 4.6 percent, with construction and manufacturing roles surging due to ongoing megaprojects.
Ohio State University, one of the nation’s largest universities, strengthens the talent pipeline, particularly in STEM disciplines. Large employers, including Nationwide Insurance, Cardinal Health, L Brands, Ohio State University and the State of Ohio government, provide economic stability, while JobsOhio continues to recruit new industries that diversify the region’s economic base.
Industrial transformation
This convergence of factors is reshaping Columbus’ industrial landscape. Large-scale manufacturing in defense, semiconductors and EV batteries is positioning Central Ohio as a “Silicon Valley–style” corridor for industrial innovation.
Logistics and distribution continue to thrive, aided by infrastructure assets and strategic location. Anduril, Intel, LG/Honda and the data center developments collectively illustrate the market’s ability to attract national and global investment.
Rapid growth brings challenges. Housing demand in suburban areas like Pickaway County is expected to intensify, pressuring infrastructure, schools and transportation. Large-scale defense projects in the region have attracted public attention due to the scale of investment and the nature of advanced technologies involved. Workforce recruitment and retention remain critical as competition for skilled labor intensifies.
Looking ahead
Despite these challenges, Columbus’ industrial market demonstrates a remarkable combination of scale, diversity and resilience. Its blend of distribution, advanced manufacturing and data infrastructure positions the city as a national hub for traditional industrial sectors and next-generation technologies.
With continued public-private collaboration, strategic planning and infrastructure investment, Columbus is poised to redefine the industrial landscape of the Midwest.
As 2026 unfolds, market observers and investors will watch Central Ohio closely. The region’s ability to combine large-scale manufacturing, sophisticated logistics and technological innovation makes it a compelling example of how a historically industrial city can adapt, modernize and thrive.
Derek Lichtfuss is an executive managing director with Newmark. This article originally appeared in the April 2026 issue of Heartland Real Estate Business magazine.