Why Is Columbus One of the Top Industrial Markets in the Country?
Columbus, Ohio has emerged as a premier industrial and logistics hub, ranking among the most active warehouse markets in the United States. The city sits within a one-day truck drive of 60% of the U.S. and Canadian populations, making it a natural distribution center for e-commerce, third-party logistics, and manufacturing operations. For investors and developers seeking industrial loans in Columbus, the market offers a compelling combination of tenant demand, infrastructure investment, and long-term growth catalysts.
The Rickenbacker Inland Port, anchored by Rickenbacker International Airport and its foreign trade zone, provides direct air cargo access and intermodal rail connections. This infrastructure advantage has attracted major logistics operators including Amazon, FedEx, and DHL, along with a growing roster of defense and advanced manufacturing tenants. Anduril's 500-acre advanced manufacturing campus at Rickenbacker represents one of the most significant recent commitments to the corridor.
Intel's $20 billion semiconductor campus in nearby Licking County is reshaping the industrial landscape further. The project requires an extensive supply chain of specialized manufacturers, cleanroom equipment suppliers, and chemical processors, many of whom are leasing or building industrial space throughout the Columbus metro.
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What Are the Current Columbus Industrial Market Fundamentals?
The Columbus industrial market finished 2025 with strong fundamentals and improving momentum. Net absorption reached approximately 9.4 million square feet through the first three quarters, demonstrating sustained tenant demand across the metro.
Overall vacancy stood at 7.7% as of Q3 2025, down nearly 20 basis points year-over-year. The tightening was most pronounced in Licking County, where vacancy dropped 4.3% from Q1 2025, with modern bulk warehouse space nearly fully absorbed. Class A warehouse leasing accounted for 54% of all Columbus leasing activity in 2025, with total volume reaching 11.9 million square feet, the highest level in 16 years.
Average asking rents across the metro sit around $5.50 to $7.50 per square foot triple net for prime locations near Rickenbacker and major highway corridors. Secondary locations trade between $4.00 and $5.50 per square foot. Union County commands the highest average asking rate at $9.53 per square foot, driven by a newer inventory base and proximity to the Honda manufacturing complex.
Investment activity remains robust. The sale of 4448 Rickenbacker Parkway East at $67.4 million (5.5% cap rate) demonstrates institutional confidence in the logistics corridor. Cap rates for Class A industrial assets generally range from 5.0% to 6.5%, while older Class B product trades at 6.5% to 8.0%.
Which Columbus Industrial Submarkets Should Investors Target?
Columbus offers several distinct industrial corridors, each with different tenant profiles, rental rates, and investment dynamics. Selecting the right submarket is critical to securing favorable industrial financing terms.
Rickenbacker/South Columbus is the largest and most active industrial corridor. The Rickenbacker Inland Port provides air cargo, intermodal rail, and foreign trade zone advantages that attract national and international logistics operators. Available land for development remains plentiful, and the submarket accounted for a significant share of 2025 leasing activity.
Licking County/New Albany has transformed from a suburban residential area into a major industrial hub. Amazon, Facebook (Meta), and Google data centers anchor the corridor, and Intel's semiconductor campus will add manufacturing demand. Vacancy dropped sharply in 2025 as modern bulk space was absorbed.
West Columbus/I-70 Corridor serves manufacturers, food processors, and distribution operators who need proximity to the I-70/I-270 interchange. This submarket offers more affordable rents and a mix of older and newer product.
Polaris/Delaware County caters to light industrial, flex, and last-mile distribution users. Proximity to affluent northern suburbs makes this corridor attractive for companies serving the consumer market.
Union County/Marysville benefits from Honda's manufacturing operations and a growing supplier base. The submarket commands premium rents due to newer inventory and strong corporate tenant demand.
What Types of Industrial Loans Are Available in Columbus?
Lenders active in the Columbus industrial market offer financing tailored to the property type, tenant profile, and investment strategy. Clear House Lending works with borrowers across all program types.
Conventional Commercial Loans from banks and credit unions serve owner-occupants and investors acquiring stabilized industrial properties. Terms typically include 5 to 10 year fixed rates, 20 to 25 year amortization, and LTV ratios up to 75%.
SBA 504 Loans are ideal for owner-occupied industrial properties, offering below-market fixed rates for up to 25 years, 90% financing (only 10% down), and the ability to finance land, buildings, and equipment in a single loan. Learn about SBA loan programs for industrial properties.
Bridge Loans fund acquisitions of vacant or underperforming industrial buildings that need repositioning, tenant improvements, or lease-up before qualifying for permanent financing. Terms run 12 to 36 months with interest-only payments. Explore bridge financing options.
CMBS Loans provide non-recourse, fixed-rate financing for larger industrial assets, typically $2 million and above. These loans work well for single-tenant net lease properties with credit tenants.
Construction Loans finance ground-up industrial development, including build-to-suit warehouses, speculative distribution centers, and manufacturing facilities. These loans typically require 25% to 35% equity and convert to permanent financing upon completion.
Use the commercial mortgage calculator to model different financing scenarios for your Columbus industrial property.
How Do Lenders Evaluate Industrial Properties in Columbus?
Industrial loan underwriting focuses on several property-specific and market factors that differ from other commercial real estate types.
Tenant Credit and Lease Terms are paramount for industrial lending. Properties with investment-grade tenants on long-term net leases (7 to 15 years) receive the most favorable financing terms. Lenders scrutinize tenant financial strength, lease rollover risk, and renewal probability.
Building Specifications matter significantly. Modern Class A warehouses with 32-foot or higher clear heights, cross-dock configurations, and ample trailer parking command higher valuations and qualify for better loan terms. Older buildings with lower clear heights (under 24 feet) may face more conservative underwriting.
Location and Access to transportation infrastructure drives industrial property value in Columbus. Proximity to Rickenbacker, I-70, I-71, or I-270 interchanges, and rail sidings all factor into the lender's assessment of long-term tenant demand.
Environmental Considerations are more prominent in industrial lending. Phase I environmental site assessments are mandatory, and Phase II testing may be required for properties with prior manufacturing use, fuel storage, or chemical handling.
Debt Service Coverage Ratio requirements typically range from 1.25x to 1.40x for industrial properties, slightly higher than multifamily due to the more concentrated tenant risk. Use the DSCR calculator to estimate your property's coverage ratio.
What Interest Rates Apply to Columbus Industrial Loans?
Interest rates for industrial loans in Columbus vary by loan type, property quality, tenant strength, and leverage. Current market conditions as of early 2026 show the following ranges.
Conventional bank loans for stabilized, well-tenanted industrial properties generally price between 5.75% and 7.25%. SBA 504 loans offer the most competitive rates, typically 5.00% to 6.25% for the CDC portion. Bridge loans for value-add or lease-up situations range from 8.00% to 11.00%. CMBS loans for larger assets fall between 6.00% and 7.50%.
The spread between industrial cap rates (5.0% to 6.5% for Class A) and borrowing costs creates positive leverage opportunities, particularly for properties with strong tenants and long lease terms.
How Is the Intel Project Reshaping Columbus Industrial Demand?
Intel's semiconductor manufacturing campus in Licking County represents the largest private-sector investment in Ohio's history. While the facility itself is a specialized manufacturing operation, the supply chain implications for the broader Columbus industrial market are substantial.
Semiconductor fabrication requires hundreds of specialized suppliers providing chemicals, gases, wafer handling equipment, precision tooling, and cleanroom components. Many of these suppliers are establishing Columbus-area operations, leasing warehouse and light manufacturing space throughout the eastern suburbs and Licking County.
The construction phase alone requires 7,000 workers and generates demand for equipment staging, material storage, and temporary fabrication facilities. Even with the completion timeline extended to 2030 or 2031, the supply chain build-out is already creating incremental industrial absorption.
Beyond direct suppliers, Intel's presence attracts adjacent technology companies and research facilities. Ohio State University's semiconductor research programs create further synergy, positioning Columbus as an emerging tech manufacturing corridor alongside its established logistics identity.
For industrial investors, the Intel effect translates to rising rents, declining vacancy, and improved tenant quality in eastern Columbus submarkets. Contact Clear House Lending to discuss financing for industrial properties positioned to benefit from this growth.
What Are the Key Risks for Columbus Industrial Investors?
While Columbus offers compelling industrial fundamentals, borrowers and lenders should understand the risk factors that can affect property performance and loan terms.
Supply Risk remains a consideration despite disciplined construction pipelines. Speculative development, particularly in the Rickenbacker corridor, could outpace absorption if economic conditions soften. Lenders monitor the spec-to-demand ratio closely when underwriting new construction loans.
E-Commerce Concentration creates tenant concentration risk. Amazon and related logistics operators occupy a significant share of Columbus industrial inventory. A shift in Amazon's distribution strategy could create localized vacancy.
Interest Rate Sensitivity affects refinancing and acquisition economics. Properties acquired at sub-5% cap rates during 2021 and 2022 may face negative leverage at current borrowing costs, complicating refinancing for overleveraged owners.
Obsolescence Risk applies to older industrial buildings that cannot accommodate modern logistics requirements. Buildings with less than 28-foot clear heights, insufficient dock doors, or limited trailer parking may struggle to attract quality tenants.
Despite these risks, Columbus industrial fundamentals remain among the strongest in the Midwest, supported by population growth, infrastructure investment, and diversifying tenant demand.
What Should Borrowers Prepare for an Industrial Loan Application?
A well-organized loan package accelerates underwriting and demonstrates borrower credibility. Here is what Columbus industrial lenders expect.
Current Rent Roll and Lease Abstracts detailing each tenant's name, lease term, rental rate, escalation schedule, renewal options, and any tenant improvement allowances or free rent concessions.
Trailing 12-Month Operating Statements showing rental income, recoveries (CAM, insurance, taxes), operating expenses, and net operating income. Industrial properties typically operate on triple net or modified gross lease structures.
Property Condition Assessment evaluating the structural integrity, mechanical systems (HVAC, fire suppression, electrical), roof condition, and site improvements including parking lots, truck courts, and dock equipment.
Environmental Phase I Assessment and, if flagged, Phase II testing. This is non-negotiable for industrial properties given the higher likelihood of environmental contamination.
Borrower Financial Package including personal financial statement, schedule of real estate owned, tax returns (for recourse loans), and entity documentation. Most lenders require a net worth equal to the loan amount and post-closing liquidity of 6 to 12 months of debt service.
Contact Clear House Lending to begin the pre-qualification process for your Columbus industrial loan.
Frequently Asked Questions
What cap rates are industrial properties trading at in Columbus?
Class A industrial properties in prime logistics corridors like Rickenbacker and Licking County trade at cap rates between 5.0% and 6.5%. Older Class B properties with shorter remaining lease terms typically trade at 6.5% to 8.0%. Single-tenant net lease properties with credit tenants may trade below 5.5% depending on lease length and tenant credit rating.
Can I get an SBA loan for an industrial building in Columbus?
Yes, SBA 504 loans are an excellent option for owner-occupied industrial properties. These loans offer up to 90% financing with a fixed rate on the CDC portion for up to 25 years. The business must occupy at least 51% of the building. SBA loans can also finance land, building improvements, and equipment, making them ideal for manufacturers and distributors. Learn more about SBA programs.
How much does it cost to build a warehouse in Columbus?
Ground-up warehouse construction costs in Columbus typically range from $55 to $85 per square foot for shell construction, depending on clear height, dock configuration, and site work requirements. Finished office build-outs within the warehouse add $75 to $125 per square foot. Total project costs for a 100,000 square foot speculative warehouse generally fall between $7 million and $12 million including land, site work, and shell construction.
What is the typical lease structure for Columbus industrial properties?
Most Columbus industrial leases are structured as triple net (NNN), meaning the tenant pays base rent plus their proportionate share of property taxes, insurance, and common area maintenance. Lease terms for larger tenants typically run 5 to 15 years with annual escalations of 2% to 3%. Shorter-term leases (3 to 5 years) are more common for smaller tenants and multi-tenant properties.
How does Rickenbacker compare to other Columbus industrial corridors?
Rickenbacker offers unique advantages including an international cargo airport, intermodal rail terminal, and foreign trade zone designation. These features make it the preferred location for import/export operations, e-commerce fulfillment, and cold storage distribution. Rents are typically 10% to 15% higher than secondary corridors, but the infrastructure advantages support stronger tenant demand and lower long-term vacancy risk.
What is the minimum down payment for an industrial loan in Columbus?
Down payment requirements vary by loan type. SBA 504 loans require as little as 10% down for owner-occupied properties. Conventional bank loans typically require 20% to 30% down. Bridge loans for value-add acquisitions may require 25% to 35% equity. CMBS loans generally cap at 70% to 75% LTV, requiring 25% to 30% down.