Cushman & Wakefield, a global leader in commercial real estate services, announced today that the Dayton, Ohio, office market saw 68,235 square feet of positive absorption in 2015.
“Overall, the positive activity in 2015 helped push the vacancy rate down 40 basis points, from 25.5% to 25.1%,” said James Flick, Vice President, Research and Marketing, in Cushman & Wakefield’s Cincinnati and Dayton offices.
Additionally, the Dayton industrial market experienced net absorption of 362,436 square feet in the fourth quarter of 2015, and was positive in all six Dayton-area submarkets.
- Quick Summary: In the fourth quarter of 2015, the Dayton market experienced -13,407 square feet of absorption.
- Growth Areas: The region’s strongest driver of demand was the CBD submarket, with 34,115 square feet of positive absorption.
- Asking Rents: The average asking rental rate remained flat at $15.46 per square foot overall and at $19.21 per square foot for Class A space.
- Outlook: While rental rates have been flat for the last year, lowering vacancies and additional positive absorption should help fuel rent growth in the future.
- Quick Summary: Full-year 2015 absorption was over 1.5 million square feet.
- Growth Areas: The South submarket was the primary driver of demand with 148,716 square feet of net absorption, followed by the Upper North submarket with 127,824 square feet.
- Vacancy Rates: Overall vacancy has fallen in Greater Dayton for 11 consecutive quarters, and currently stands at 9.34%. By comparison, vacancy was 14.77% just two years ago (Q4 2013).
- Outlook: Looking ahead to 2016, vacancy rates should continue to tighten all across product types, which may prompt another round of new construction.