According to the release of Cassidy Turley Commercial Real Estate’s latest market snapshots, both the Cincinnati and Dayton office sectors ended 2013 strong, as fourth quarter net absorption exceeded 130,000 square feet in each of the markets. Below are some highlights from the reports.
Highlights of the Cincinnati Fourth Quarter Market Snapshot
- Area businesses absorbed 134,656 square feet of vacant space pushing the vacancy rate down to 22.21%, a reduction of 1.19% since the end of 2012.
- Submarkets that saw the highest amounts of demand for space in the fourth quarter were Mason, with 175,824 square feet of positive net absorption; Midtown, with 17,774 square feet; and Tri-County, with 16,317 square feet.
- Overall asking rents fell 1% to $17.90 per square foot as landlords continue to offer aggressive leasing packages to secure tenants.
- 2014 Outlook: Cincinnati businesses should continue absorbing space into 2014 and beyond, especially in the Central Business District where pro-urban attitudes are bringing residents and businesses back from the suburbs.
Highlights of the Dayton Fourth Quarter Market Snapshot
- Area businesses absorbed 181,326 square feet of vacant space pushing the vacancy rate down to 24.79%.
- Submarkets that saw the highest amounts of demand for space in the fourth quarter were the South, with 93,933 square feet of positive net absorption; the Central Business District, with 83,782 square feet; and the North, with 19,720 square feet.
- Overall asking rents held firm at $14.45 per square foot. However, Class A rents fell by 1.1% to $18.14 per square foot.
- 2014 Outlook: The South submarket will continue to attract tenants from various areas especially in the Austin Landing development along I-75 in Miami Township. This development recently changed plans, scraping a 14-screen cinema and ice rink in favor of 200,000 square feet of planned office space. Some of the growth in the South submarket in 2014 will come at the expense of the Central Business District as a number of companies have committed to relocating. They include Merrill Lynch, which is vacating 16,000 square feet in the Kettering Tower in favor of 12,000 square feet at Austin Landing and Thorson, Switala, Mondock & Snead LLP, which is relocating from 5,000 square feet at 130 W. Second Street to Miami Township in March 2014