Cushman & Wakefield, a global leader in commercial real estate services, announced today that despite sub-5% vacancy, net absorption in the Cincinnati industrial market reached 1 million square feet in the fourth quarter of 2015.
“Full year 2015, net absorption of 5.81 million square feet in the Cincinnati industrial market easily exceeded the 2014 mark of 4.78 million square feet,” said Jarrett Hicks, Senior Research Analyst in Cushman & Wakefield ’s Cincinnati and Dayton offices.
Additionally, the fourth quarter capped off a great year in the Cincinnati office market. According to Cushman & Wakefield research, more than 372,000 square feet of space was positively absorbed by area businesses in the fourth quarter, bringing total net absorption for 2015 to more than 930,000 square feet.
- Quick Summary: Delivery of over 2 million square feet of bulk warehouse space in the past two quarters pushed Class A bulk vacancy to 5.1%, up from 1.3% in the second quarter of 2015. Class B bulk vacancy continues to decrease due to leasing in the Central and Northern Kentucky submarkets.
- Growth Areas: The Central submarket saw the most demand with 471,187 square feet of net absorption, followed by the Northwest with 319,456 square feet.
- Vacancy Rates: In 2015, overall vacancy in Greater Cincinnati was extremely low, and the fourth quarter was no exception, at 4.59%.
- Outlook: Overall vacancy shows no sign of major change, and will remain below 5% for the next 12 months. While significant deliveries of bulk distribution space took place in 2015, a number of new speculative projects will break ground in early-to-mid 2016.
- Quick Summary: Overall office market vacancy dropped 160 basis points over the 12-month span, from 21.3% to 19.7%
- Growth Areas: Midtown was the strongest driver of demand, with183,000 square feet of positive absorption in the fourth quarter and 467,000 square feet overall in 2015.
- Asking Rents: The year ended with an overall asking gross rental rate of $17.79.
- Outlook: The CBD will continue to see vacancy rates decrease in 2016. Demand is still strong for high-quality Class A space, along with creative space in both Over-the-Rhine and the CBD periphery.