Foresight 2025 - 6th Edition

2025 | 6TH EDITION

FORESIGHT ANNUAL COLUMBUS OFFICE TENANT REPORT PRESENTED BY COLLIERS | COLUMBUS

TENANT BEHAVIOR AFFECTING THE OFFICE MARKET - p. 6 WHERE ARE BUSINESSES RELOCATING? - p. 12 TOP WORKPLACE TRENDS - p. 18 WHAT CAN WE EXPECT IN 2025? - p. 23

Annual Columbus Office Tenant Report | 1

TABLE OF CONTENTS

2025

prediction

Look for this icon throughout for insight on 2025 predictions.

Tenant Behavior & Case Studies

06

Interview: From the Office Market Experts

10

Tenant Migration: Where Are Businesses Relocating?

12

Top Workplace Trends in 2025

18

Interview: Insights From Property & Project Management Experts

20

What’s to Come What We Can Expect in 2025

23

WHAT’S INSIDE? The Columbus office market is evolving with new opportunities and shifting dynamics.

As more companies bring employees back to the office, whether through mandates or incentives, Columbus is experiencing a revitalization of office spaces, marked by evolving tenant demands and new challenges. Businesses are adapting to these changes by reimagining workspaces and incorporating amenities that cater to employees’ changing needs, both within their buildings and in nearby areas. This report explores trends in demand, the influence of hybrid work models and new opportunities for occupiers and investors. It provides insights into workplace trends, tenant behavior case studies, migration patterns, industry leader perspectives and forecasts for Columbus office space in 2025.

2 | Annual Columbus Office Tenant Report

OUR PURPOSE At Colliers | Columbus, we help accelerate our clients’ success, specializing in industrial, office, retail and investment properties.

Services provided within these specialties include leasing, disposition, tenant and buyer representation, corporate services, property management, facility services, construction management, development, valuation and consultation. Our full service platform allows our clients to focus on their core business and add value through a strategic approach to real estate.

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ABOUT THE AUTHORS Reach out to our team with any questions, or for the inside scoop!

Email: columbus@colliers.com

COLLIN FITZGERALD Research Manager Collin leads the research team, working in partnership with all departments at Colliers | Columbus, including brokerage, client services, real estate management services, construction and development. He is responsible for understanding emerging trends and helping clients harness the insight to make decisions for their business. Collin combines market data along with his commercial real estate expertise and forwardthinking approach to deliver reports that help clients respond to current conditions and plan for the future.

STEPHANIE MORRIS Senior Research Analyst Stephanie specializes in research capabilities, providing support for the Colliers | Columbus team and their clients. 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.

4 | Annual Columbus Office Tenant Report

“

Columbus is poised for sustained growth as we build vertical communities. The future of a successful workplace lies in seamlessly integrated environments that harmonize office, retail, and outdoor spaces.

- Julie Simono, CPM® Executive Vice President, Colliers | Columbus

“

Annual Columbus Office Tenant Report | 5

TENANT BEHAVIOR CASE STUDIES

&

“

The overarching goal of the Sky Lounge, the fitness center, and really the entirety of this project, is to help employers better build that value proposition to their employees.

- CJ Schebil Valstone Partners Columbus Business First

“

6 | Annual Columbus Office Tenant Report

The Trend: amenitizing assets to attract tenants In the post-pandemic office market, landlords face a new challenge: helping tenants bring employees back to the office. As the hybrid work model diminishes, companies are prioritizing office environments that provide compelling reasons for in-person collaboration, productivity and engagement. In response, landlords of older assets are making substantial investments to compete with newly built, amenity-rich office spaces.

Landlords are transforming traditional office buildings

into experience-driven workplaces by modernizing lobbies, upgrading common areas and introducing high-end features such as fitness centers, conference facilities and hospitality-inspired lounges. These efforts attract and retain tenants and align with the broader shift toward creating workplaces that foster culture, collaboration and convenience in an era where employee preferences are reshaping office demand.

Case Study #1: CAPITOL SQUARE Group RMC acquired 65 E. State in 2020, shortly after the pandemic began. Since then, the owners and leasing team have transformed the 16th floor into a premier amenity space, investing $2.2 million to replace office space with high-end features. The newly renovated floor includes a state-of-the-art fitness center with a skyline view, a group fitness room, a golf simulator, a bar, soft seating areas and multiple gathering spaces. Tenants also have access to a 3,000+ SF high-tech conference center with flexible meeting spaces, optional breakout rooms, a kitchenette, an event space and a training room.

ADDRESS

65 E State St

SIZE

495,000 SF

Case Study #2: FIFTH THIRD CENTER In 2018, ValStone Partners acquired the historic 23-story Fifth Third Center in Columbus, Ohio, for $28 million. Facing a 15% occupancy rate, the firm secured a $24 million construction loan to revitalize the building. Renovations commenced in November 2021 and concluded in July 2022, introducing modern amenities such as a tenant lounge with a rooftop patio, a renovated lobby, a fitness center and a golf simulator. These improvements aimed to enhance the building’s appeal in a competitive office market, providing an updated and attractive workspace to help attract tenants and improve retention. By integrating lifestyle-oriented features, ValStone strengthened the asset’s value, positioning it as a desirable destination for businesses seeking high-quality office space. CJ Schebil, asset manager with ValStone Partners, emphasized that these enhancements aimed to help employers better build value propositions for their employees.

The upgrades reflect a broader trend of office landlords adapting to shifting workforce expectations, prioritizing amenities that foster engagement, collaboration and employee well-being.

Sources: Columbus Business First, GlobeSt, Costar

ADDRESS

21 E State St

SIZE

330,849 SF

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The Trend: EMPLOYERS CALL EMPLOYEES BACK TO OFFICE As more companies prioritize collaboration, productivity, company culture, and associate development, employees are required to return to the office fulltime and hybrid schedules are diminishing. Major corporations such as Amazon, Goldman Sachs, JPMorgan Chase and Tesla have mandated full-time office attendance, while others, including Apple, Google and Meta, have adopted hybrid models requiring two to five in-office days per week. Many employers argue that in-person work strengthens teamwork, fosters innovation and supports long-term business goals.

The KPMG US CEO Outlook Report highlights a

significant shift in corporate work expectations over the next three years. CEOs now anticipate that 79% of employees will work in-office, a dramatic rise from 34% earlier in 2024. Meanwhile, hybrid work is projected to decline from 46% to 17%, while fully remote work will remain minimal at 4%. This shift also affects the commercial real estate market, increasing demand for office space in some areas while prompting landlords to adapt workspaces to evolving corporate needs. As businesses navigate economic challenges, many view office returns as essential for maintaining efficiency and growth.

Case Study #1: STATE OF OHIO

ADDRESS

30 E Broad St

CURRENT # OF EMPLOYEES 24,217 total Central Ohio.

The third largest employer in Central Ohio is calling their employees back into the office, a move expected to impact downtown Columbus significantly. Governor Mike DeWine has issued an executive order mandating that all permanent employees of state agencies, boards and commissions under his authority return to in-office work five days a week. “As we are seeing the private sector now move more and more people back, it made sense to me to have a general rule that people would move back with exceptions,” Gov. DeWine said.

Approximately 17,000 state employees in Franklin County will be affected by this directive. Downtown Columbus is anticipated to experience increased economic activity as a result. Experts suggest higher office occupancy can lead to stabilized commercial real estate values, increased income tax revenues and more foot traffic benefiting local businesses such as restaurants and retail shops. Overall, the return of state employees is expected to bolster downtown Columbus’ economic vitality, supporting local businesses and contributing to the area’s ongoing revitalization efforts.

Case Study #2: AEP American Electric Power (AEP) is ending its hybrid work model and requiring employees to return to the office five days a week starting June 1, 2025. The change affects about 2,400 employees in Central Ohio across the company’s downtown, Gahanna and New Albany offices. AEP says the shift will support its $54 billion investment over the next five years to improve service and meet growing energy demand. A company spokesperson emphasized the benefits of in-person collaboration, stating that face-to-face interactions will help drive efficiency and innovation as AEP modernizes the energy system.

ADDRESS

1 Riverside Plaza

CURRENT # OF EMPLOYEES

16,000+ total, with 3,058 in Central Ohio.

Sources: Columbus Dispatch, Columbus Business first, KPMG, Costar

WHAT’S IN STORE FOR 2025?

2025

prediction

As companies solidify return-to-office policies and prioritize engagement, the demand for office spaces that enhance the employee experience will intensify. In 2025, amenity-rich office buildings will be the primary beneficiaries of this trend, outperforming traditional office properties in occupancy rates, lease velocity and tenant retention.

Employers increasingly leverage high-quality office environments as recruitment and retention tools, recognizing that workplace design is critical in shaping company culture and employee satisfaction. In response, landlords who invest in modernizing their assets with hospitality-inspired amenities, such as premium fitness centers, high-end conference facilities, rooftop lounges and experiential common areas, will see strong leasing activity.

In Columbus, office buildings that have undergone significant renovations, like Capitol Square and Fifth Third Center, are already experiencing increased tenant demand. This trend will continue in 2025 as companies prioritize high-quality, well-located spaces that support collaboration, flexibility and employee well-being. Older office buildings without reinvestment may struggle with higher vacancies, while properties offering premium amenities will capture most of the leasing activity and command higher rents.

Annual Columbus Office Tenant Report | 9

FROM THE MARKET EXPERTS

Our Office Services Group at Colliers | Columbus specializes in the leasing and sale of office space across Central Ohio. Owners, investors and tenants trust our office brokerage team for their in-depth market knowledge and reliable advice to develop tailored solutions for their real estate needs. With a dedicated focus on the office market, they possess extensive expertise in tenant behavior and current industry trends.

How do suburban office markets compare to urban markets in terms of growth and desirability?

Tenants continue to prefer buildings that have been recently renovated with added amenities. Suburban markets will likely continue to have an edge due to free parking and proximity to employee residences. However, we expect downtown properties to catch up regarding amenities and other incentive packages. Professional service companies and those in the FIRE industries typically have a more substantial interest in downtown locations. We anticipate increased activity within these firms in the downtown area.

- Marty Ellinger, Brokerage Associate What key features and amenities are tenants prioritizing in office spaces today?

Tenants are increasingly prioritizing access to shared conference and training rooms, along with high-quality in-building amenities such as cafés operated by reputable vendors. There has been a positive response to buildings offering complimentary coffee bars in common areas, featuring premium brewing equipment and coffee. In office suites, there is a focus on high-end finishes and furniture, particularly in spaces designed for larger meetings, as well as smaller areas for one-on-one discussions.

Open café and kitchen areas are becoming popular as hubs for gathering and collaboration. Additionally, greater investments are being made in technology for conference rooms, including teleconferencing equipment, electronic whiteboards, and modern furniture.

- Chris Potts, Senior Vice President What significant office design and layout trends do you anticipate for 2025?

We can expect to see an increasing number of amenity spaces designed for employees to relax and hold informal meetings. Otherwise, the trends will largely remain the same. Most tenants are opting for interior offices with sidelights and open floor plans. Additionally, there is a growing emphasis on increasing the number of conference rooms to accommodate more meeting space.

- Brett Cisler, Senior Executive Vice President Do you foresee smaller or satellite office spaces becoming a dominant trend for businesses by 2025?

I don’t think so. I believe offices will continue to grow in average size in 2025, and companies will look to have as many people as possible together to influence a positive culture and environment.

- Brett Cisler, Senior Executive Vice President

“

Demand [in 2025] will still be below pre-pandemic levels, but we expect to see increased activity as companies bring employees back to the office. We see this happening at an increasing rate, with 2026 having the potential for all-time highs in absorption and demand.

Are you seeing more tenants reducing or expanding their space needs? If so, how does this impact landlords?

We are seeing more tenants reduce their space needs but spend more tenant improvement (TI) money to improve the quality of the space with better design to attract employees to work from the office rather than from home.

- Andrew Jameson, Vice Chair Landlords are asking for longer lease terms to provide TI dollars needed, or are asking the tenant to contribute TI dollars if the lease term is too short.

Landlords are facing tough decisions when it comes to spending TI money, especially when a tenant is renewing and wishes to downsize. In such cases, landlords must decide whether to subdivide part of the office suite or offer to maintain the current space size at a slightly lower rent, hoping the tenant will soon need to expand again. Overall, landlords must be prepared to invest more in TI, though they may not achieve the desired rent growth compared to the previous lease.

- Chris Potts, Senior Vice President How important are sustainability and green building certifications to tenants and investors today?

We see more sustainability and green initiative requests in requests for proposals (RFPs) from Fortune 500 companies. While not a main driver, it can be a way to differentiate a building. Moving forward, we will likely see more companies placing an emphasis on buildings being energy efficient to help mitigate costs.

- Grant Horton, Brokerage Associate

“

- Marty Ellinger

Brokerage Associate, Colliers | Columbus

How will technological advancements, such as smart buildings and IoT, shape office spaces in 2025?

We will continue to see tech influence the industry.

Virtual and augmented reality advancements for tours and tenant layouts will be differentiators among buildings to help tenants visualize themselves in the spaces. AI sustainability tools will help optimize building performance and meet any ESG goals.

Tenants will likely require smart office features like automated lighting, HVAC and security systems incorporated into their lease agreements.

- Grant Horton, Brokerage Associate What role will wellness-focused designs and amenities play in office spaces in 2025?

Class A buildings in amenity-rich walkable locations see the lowest vacancy and highest rents. Tenants who can’t get into those buildings, whether due to lack of availability or affordability, are looking for the next best option. That’s why amenities are more important now than ever. Many building owners are investing in expanding amenity sets to attract tenants.

Companies want traditional amenities like fitness centers and conference rooms, and they’re looking for social areas such as tenant lounges or cafés where they can collaborate and connect with one another.

The tenant’s experience is essential as well. Going the extra mile to offer perks like coffee shop pop-ups or occasional free fitness classes helps create a sense of community and engagement.

- Taylor Fanté, Vice President

TENANT MIGRATION Where are Businesses Relocating?

Tenant preferences are shifting as companies solidify their return-to-office strategies. We employ a point system based on signed square footage to track office user migration across Columbus. Additionally, our analysis of transaction data uncovers key statistics, emerging trends, and potential shifts in tenant behavior. This section provides a deeper dive into office tenant migration patterns within the Columbus market.

2023 Leases Signed - 67 Signed SF - 363,450 SF Average TI - $27.37 Average Term - 57 months

55

months

57

months

60

months

Law

Q2

Leases Signed - 59 Signed SF - 356,656 SF Average TI - $22.81 Average Term - 52 months

Q3

Leases Signed - 96 Signed SF - 668,709 SF Average TI - $26.03 Average Term - 48 months

Law remained in the top three while Engineering/Manufacturing and Real Estate/ Construction replaced Education and Healthcare from 2023.

Leases Signed - 71 Signed SF - 434,491 SF Average TI - $19.87 Average Term - 52 months

Highest Average Term Length (in months)

by Submarket:

Q4

2024 Total:

Leases Signed - 266 Signed SF - 1,635,499 SF Average TI - $23.39 Average Term - 53 months

Leases Signed - 275 Signed SF - 1,786,950 SF Average TI - $23.44 Average Term - 51 months

71

months

New Albany

2023 Total:

67

months

Easton

Although 2024 started slowly, lease activity rebounded significantly, doubling quarter over quarter in Q3. Tenant improvement (TI) allowances also increased, reflecting heightened competition for occupiers. Demand remains strong for “best-in-class” office spaces, prompting older building landlords to enhance incentives to attract tenants. Meanwhile, the average lease term held steady at 51 months, consistent with 2023 levels.

60

months

Polaris

Leases Signed - 58 Signed SF - 351,507 SF Average TI - $24.07 Average Term - 57 months

Highest Average Term Length (in months)

by Industry:

Engineering/ Manufacturing

Leases Signed - 75 Signed SF - 361,391 SF Average TI - $21.48 Average Term - 46 months

Q1

Leases Signed - 49 Signed SF - 327,094 SF Average TI - $24.52 Average Term - 52 months

Lease Length:

Real Estate/ Construction

Leases Signed - 66 Signed SF - 559,151 SF Average TI - $20.62 Average Term - 53 months

2024

Polaris and Easton remained in the top three while New Albany replaced North Central from 2023.

The number of deals and total square footage leased increased in 2024, with transaction volume up 9.3%. Average TI allowances remained around $23.40, while the average lease term decreased slightly to 51.2 months.

TI Allowance*: Highest Average TI Allowance by Industry: Business Services

$33.53

Financial Services

$32.45

Law

$26.55

Law remained in the top three while Business Services and Financial Services replaced Insurance and Healthcare from 2023.

Highest Average TI Allowance by Submarket: New Albany

$30.51

Polaris

$29.30

Gahanna/Airport

$28.87

Polaris remained in the top three while New Albany and Gahanna/Airport replaced CBD and East from 2023. * The TI (tenant improvement) allowance is the amount that the landlord will spend for the tenant to build out their space.

Leased Square Feet: Highest Total SF Signed by Industry:

Financial Services

Business Services

Engineering/ Manufacturing

339,136 SF

261,331 SF

217,906 SF

Business Services remained in the top three while Financial Services and Engineering/Manufacturing replaced Healthcare and Law from 2023.

Highest Total SF Signed by Submarket:

Dublin

CBD

Polaris

481,683 SF

280,295 SF

244,689 SF

CBD and Dublin remained in the top three while Polaris replaced Worthington from 2023.

TENANT MIGRATION HEAT MAP Represents the number of tenants that were new to the submarket

Dublin | 120 points 20 tenants (117,045 SF) 56 tenants (365,718 SF) 2 tenants (7,570 SF)

Worthington | 35 points 6 tenants (29,486 SF) 30 tenants (107,551 SF) 8 tenants (71,421 SF)

Easton | 18 points 2 tenants (51,336 SF) 3 tenants (105,659 SF) 1 tenant (6,407 SF)

East | 9 points 6 tenants (13,879 SF) 4 tenants (10,881 SF) 2 tenants (5,105 SF)

Represents the number of tenants that moved within the submarket

Polaris | 59 points 15 tenants (148,579 SF) 14 tenants (81,849 SF) 0 tenants (0 SF)

Gahanna/Airport | 22 points 7 tenants (20,024 SF) 13 tenants (41,509 SF) 3 tenants (12,604 SF)

Hilliard | 15 points 1 tenant (2,263 SF) 8 tenants (77,451 SF) 1 tenant (7,109 SF)

Arlington/Grandview | 4 points 2 tenants (16,262 SF) 9 tenants (40,898 SF) 7 tenants (34,532 SF)

North Central | 1 point

Delaware | 0 points

0 tenants (0 SF) 1 tenant (4,609 SF) 0 tenants (0 SF)

0 tenants (0 SF) 0 tenants (0 SF) 0 tenants (0 SF)

Southeast | -2 points 1 tenant (6,000 SF) 0 tenants (0 SF) 1 tenant (26,336 SF)

Represents the number of tenants that left the submarket

CBD | 58 points 10 tenants (72,993 SF) 25 tenants (207,302 SF) 3 tenants (16,309 SF)

Westerville | 22 points 6 tenants (26,925 SF) 19 tenants (175,322 SF) 7 tenants (62,697 SF)

New Albany | 12 points 4 tenants (15,402 SF) 5 tenants (31,535 SF) 1 tenant (1,688 SF)

Powell | 2 points 2 tenants (4,594 SF) 4 tenants (15,350 SF) 2 tenants (20,000 SF)

Southwest | -1 point 0 tenants (0 SF) 0 tenants (0 SF) 1 tenant (2,409 SF)

Delaware

Powell Polaris

Worthington Dublin

Westerville New Albany Arlington/ Grandview

North Central

Easton

Gahanna/ Airport

Hilliard

CBD

East

Southwest Southeast

50,000 SF and up ..............................5 points 20,000 SF to 49,999 SF...................... 4 points 10,000 SF to 19,999 SF.......................3 points 5,000 SF to 9,999 SF.......................... 2 points 0 SF to 4,999 SF................................. 1 point 0 SF to -4,999 SF................................ -1 point -5,000 SF to -9,999 SF....................... -2 points -10,000 SF to -19,999 SF....................-3 points -20,000 SF to -49,999 SF................... -4 points -50,000 SF and below ........................-5 points

Red represents movement to the submarket, while blue represents movement from the submarket.

-

+

Migration Key

Arrows represent trending tenant movement Represents the hottest submarket of 2024

DEEP DIVE: TENANT MIGRATION TRENDS From 2024

1/2

of all leases signed in 2024 were tenants in the Financial Services, Business Services and Healthcare industries.

45%

60%

of leases over 5 years were signed in Dublin, Polaris and Worthington.

of Financial Services tenants signed for space in Dublin or Worthington.

tenants that leased their first Central 1/4 ofOhio location did so in Dublin. tenants that left space in Westerville 3/4 ofmigrated to the Polaris submarket.

The most popular submarkets for Insurance tenants were CBD and Polaris.

The most popular submarket for Engineering/Manufacturing tenants was Worthington.

The most popular submarket for Business Services tenants was Dublin.

16 | Annual Columbus Office Tenant Report

50% of new tenants that entered the market in 2024 leased space in Dublin, East or Gahanna/Airport.

25%

of leases signed with the highest TI allowances were tenants in the Business Services and Financial Services industries.

2025

WHAT TO LOOK FOR IN 2025 Predictions in Tenant Behavior

TI Allowance:

Lease Term:

prediction

The average TI allowance continues to climb due to a few factors. The evolving office market demands adaptable spaces that move away from traditional layouts to better accommodate tenants’ needs.

The highest TI allowances are seen in the Business Services, Financial Services and Law industries, which together make up nearly 30% of current tenants. Given market demand, these industries are likely to lease more space in 2025.

The average lease term has declined slightly year-over-year and is expected to remain under five years in 2025. This trend reflects the ongoing uncertainty surrounding office space needs in the post-pandemic era. Many tenants have opted for short-term renewals as they assess their long-term space requirements. Additionally, there is a growing willingness among tenants to relocate, either to adjust their office footprint or to be closer to better amenities.

Leased SF:

Industry:

The office market is expected to maintain a steady pace of activity throughout 2025.

Law firms, Healthcare and Engineering companies are expected to drive most transaction activity in 2025.

The number of tenants in the market remained stable in 2024, starting at 95 in January 2024, dipping to 92 in August 2024, and rising to 98 by December 2024.

Given that the market remained within the 90–100 tenant range throughout 2024, we anticipate similar stability, with activity hovering around 100 tenants in 2025.

Together, these industries represent nearly one-third of tenants in the market, accounting for over 438,000 square feet.

Most of the largest tenants seeking 10,000 square feet or more come from these sectors.

Migration Prediction 1: Suburban activity will continue to outpace activity downtown. In 2024, 84% of transaction activity occurred in suburban markets.

25

tenants representing 223,300 total SF are searching in Dublin.

1

tenant is seeking 60,000 SF in Westerville.

10

engineering firms are looking for over 107,000 SF in the suburban submarkets.

Migration Prediction 2: Lease activity rose by 9.3% over the past year, and we anticipate total transaction volume will continue to grow in 2025. Currently, tenants in the market are seeking more than 1.3 million square feet of office space. Additionally, three major Columbus employers have implemented return-to-office mandates, with more companies potentially following suit in 2025, a trend that could further drive demand for office space.

Annual Columbus Office Tenant Report | 17

2025

prediction

workplace trends in 2025

In 2025, workplace trends will continue evolving to meet the needs of a changing workforce. As more companies mandate a return to the office, workplace trends shift toward spaces prioritizing functionality and experience.

Employee experience will take center stage to attract and retain talent, with offices offering more hospitalityinspired amenities such as wellness rooms, fitness centers and high-end dining options. Technology will be more significant in optimizing space usage, improving connectivity and enhancing productivity. As businesses push for more in-office presence, they expect workplaces to become not just workplace places, but environments designed to engage, inspire and support employees.

hybrid work as the standard

office spaces designed for purpose

While full-time remote work is declining and more back-to-office mandates start to come, hybrid models exist but are becoming less prevalent. Organizations will need to repurpose office spaces to accommodate flexible seating, ‘hot-desking’ and collaboration. Additionally, they will use data from occupancy sensors, Wi-Fi tracking and workplace management software to gain insights into how spaces are used.

Workspace utilization data will guide decisions about space allocation, room scheduling and overall capacity planning, helping to maximize efficiency and reduce wasted space.

Workplaces are being redesigned with specific use cases in mind such as collaborative hubs, focus areas, wellness spaces and social zones.

AI-driven lighting, temperature and seating layout customization enhances employee comfort and productivity. AI is automating administrative tasks, optimizing workflows and enhancing decisionmaking. Innovative office technology, such as occupancy sensors and predictive analytics, is helping organizations to improve efficiency and right-size office space.

“

Companies are optimizing their footprints, prioritizing efficiency, collaboration, and employee engagement.

Workplaces are evolving into experiential spaces designed not just for work but also to foster culture, community and enjoyment.

“

- Trey Hafer Senior Project Manager, Colliers | Columbus

workplace design focus on well-being Workplace design is also evolving to reduce stress and enhance well-being, incorporating green spaces, quiet zones and wellness rooms. Property managers are more active in creating environments that foster comfort and productivity. Standard workplace amenities now include increased natural light, improved ventilation, on-site fitness centers and wellness-focused spaces like relaxation rooms and coffee bars.

sustainability-driven design Sustainability-driven design is becoming a priority as companies aim to reduce their carbon footprint through energy efficiency, renewable energy solutions and ecofriendly building materials. Workplaces are implementing responsible waste disposal, low-emission materials, motion-activated lighting and renewable energy sources like solar panels. Features such as green roofs, smart water refill stations, bike racks and EV charging stations are also gaining traction. A sustainable office lowers operational costs and enhances brand reputation in an era of conscious consumerism. The U.S. Department of Energy has introduced a national definition of zero-emission buildings, pushing organizations to optimize energy use through efficient HVAC systems, automated lighting and climate control based on occupancy. As a result, property managers will lead efforts to achieve green certifications like LEED by integrating sustainable materials, energy-efficient designs and hybrid work policies to further reduce environmental impact.

evolving workforce skills for the future By 2027, nearly half (44%) of workers’ core skills will be disrupted, according to the World Economic Forum, with AI and green initiatives driving significant shifts in job roles.

This transformation will lead to both emerging opportunities and the decline of certain positions. As a result, tech literacy and understanding and leveraging new technologies will become crucial. Additionally, socio-emotional skills such as empathy, curiosity and resilience will be in higher demand as AI takes on more analytical and technical tasks.

The workforce will shift away from rigid job titles and degrees, instead prioritizing specific skills and competencies. Companies may also expand internal mobility programs, allowing employees to transition into roles that align with their evolving expertise, ensuring adaptability in a rapidly changing job market.

Annual Columbus Office Tenant Report | 19

more Expert insights

From Our Property Management and Project Management Professionals

What are the most significant changes in workplace design and usage in 2025?

Workplace design in 2025 continues to evolve with a hybrid-first approach, prioritizing flexibility and adaptability. However, this trend appears to have decreased from previous years, with some companies pushing employees back to the office. Offices are no longer just workplaces but are designed to enhance collaboration and engagement. Expect a mix of open collaboration spaces, hot desks and quiet zones tailored to hybrid teams. Additionally, companies are downsizing their physical footprints, focusing on efficiency and optimizing space for maximum functionality. Another key shift is the rise of experiential workplaces, where office spaces incorporate hospitality-like elements to foster culture, community and engagement. Rather than simply providing a workspace, companies are designing offices that make work enjoyable and compelling. A strong emphasis on employee well-being is also shaping office environments, with natural light, improved ventilation, fitness spaces and wellness rooms becoming standard features.

- Trey Hafer, Senior Project Manager What are tenants’ top priorities heading into 2025?

As tenants navigate evolving workforce needs, flexibility and scalability remain top priorities. Companies want office spaces that adapt easily to changing team sizes and hybrid schedules. Economic uncertainty has also placed a sharper focus on cost control and efficiency, leading tenants to scrutinize leases, operating expenses and build-out costs more than ever. Additionally, talent attraction and retention have become major drivers in office design, as companies recognize that a well-designed, engaging workplace can serve as a compelling reason for employees to return to the office.

- Trey Hafer, Senior Project Manager 20 | Annual Columbus Office Tenant Report

Katie Kasas, Senior Property Manager, and Trey Hafer, Senior Project Manager, are valued experts on our Colliers | Columbus team. With extensive experience in the industry, they possess deep knowledge of office space trends, tenant behavior, and the evolving needs of modern workplaces. Their insights help navigate the shifting landscape of the workplace, making them trusted advisors in the field.

From a property management perspective, what do you believe matters most to tenants when it comes to their office space and buildings?

From a property management perspective, the key to tenant satisfaction isn’t just the space - it’s the relationship. Effective communication from the landlord or their representative is at the heart of that relationship. Seamless communication builds trust.

Whether delivering timely tenant announcements, providing critical building updates, clarifying lease terms, or responding swiftly to maintenance concerns.

It’s not just about solving problems; it’s about fostering a lasting partnership that ensures tenant retention and long-term success.

- Katie Kasas, Senior Property Manager What role does sustainability play in workplace design for 2025?

Sustainability is at the forefront of workplace design in 2025, with energy efficiency becoming a non-negotiable aspect of office construction and renovation. LED lighting, smart HVAC systems and other energy-efficient upgrades are now standard expectations for landlords and tenants. Additionally, there is a strong focus on timeless design, with companies seeking spaces that will remain aesthetically and functionally relevant for years. Stricter government regulations surrounding energy codes and carbon reduction policies are also influencing office builds, pushing the industry toward more sustainable practices.

- Trey Hafer, Senior Project Manager

What key considerations should tenants and landlords keep in mind for 2025?

Understanding how office space is used is becoming a critical factor in decisionmaking for both landlords and tenants.

Office space utilization data is key to making informed leasing and design choices. Additionally, lease flexibility has become a competitive advantage, with tenants increasingly favoring shorter lease terms, spec suites and move-inready spaces. As companies remain cautious about long-term commitments, landlords invest more in high-quality, pre-built office spaces to attract tenants quickly. Finally, the “flight to quality” trend continues as companies prioritize newer, amenity-rich office buildings over outdated Class B and C properties, leading to rising vacancies in older office spaces.

- Trey Hafer, Senior Project Manager What major trends do you anticipate in 2025 from a property management perspective?

In 2025, several key trends are expected to shape commercial real estate management. The return-to-work movement will gain momentum as larger companies enforce return-to-office policies, prompting more businesses to follow suit and reshaping workplace dynamics. Sustainability and the integration of green spaces will continue to grow, reflecting a heightened focus on environmental responsibility and employee well-being. Offices will also prioritize comfort-driven workspaces, creating relaxed and welcoming

environments that enhance productivity.

Additionally, mixed-use campuses that blend live-work-play elements will see increased demand, allowing employees to balance work and personal life within well-designed communities seamlessly.

Lastly, the revitalization of city centers will accelerate as the shift back to office work breathes new life into both urban and suburban office markets, driving renewed investment in commercial districts.

- Katie Kasas, Senior Property Manager What are the biggest trends in commercial project management for 2025?

Several key trends are shaping commercial real estate project management in 2025. Flexible office build-outs are becoming the norm, with more companies emphasizing open layouts, strong brand identity and adaptable furniture solutions. Cost control remains a significant priority, as rising material and labor costs necessitate creative value engineering strategies. Sustainability-driven design also plays a more significant role, with landlords and tenants seeking upgrades that enhance energy efficiency and long-term value. Shorter timeframes and schedules are becoming emphasized across the industry with technology’s continued emergence and implementation to push efficiency. At the center of this is the implementation of AI. This impacts the way commercial offices function and the project management industry itself, with more data-driven capabilities available to all.

- Trey Hafer, Senior Project Manager

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As the return-to-office wave gains momentum, Columbus stands at the crossroads of resilience and opportunity. With its balanced market dynamics, growing business ecosystem and competitive edge over other cities, Columbus is not just keeping pace—it’s setting the stage for a revitalized office sector in 2025 and beyond.

- Collin Fitzgerald Research Manager, Colliers | Columbus

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2025

prediction

WHAT’S TO COME 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 while others, like Spotify and Airbnb, reinforce remote-first policies. In Columbus, tenant demand will grow in 2025 as more firms introduce stricter in-office policies. The 2024 VTS Global Workplace Report found that 59% of companies are currently mandating more in-office time, with 55% planning to further increase attendance.

The future of work will be more tech-driven. From smart building automation to data-driven space management, organizations will increasingly rely on workplace intelligence tools to drive efficiency in the modern workplace. 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.

Investment activity remains subdued, with buyers seeking discounts and sellers hesitating to accept major losses. By 2025, lease terms and space requirements are expected to stabilize, with companies prioritizing workplace configurations that align with evolving employee preferences, sustainability initiatives and technology-driven efficiencies.

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FORESIGHT CONTACT OUR TEAM TODAY: Colliers Greater Columbus Region Two Miranova Place | Suite 900 Columbus, OH 43215 +1 614 436 9800