Cincinnati Office Market Report
Leasing volume is slow relative to previous years, but tenant demand continues to persist which emphasizes a preference for flexible and efficient space. The only office building currently under construction is located at OneNKY Center in the Northern Kentucky Submarket, where construction began in the third quarter of 2023. Expected delivery early 2025. In Cincinnati, average office rental rates increased from $22.04/SF in 2023 to $22.94/SF in 2024 due to rising demand and limited quality space. With limited new construction, landlords are finding themselves in a favorable position where they can focus on improving their properties’ value through strategic upgrades. With office rents rising year over year, businesses should prepare for a competitive leasing landscape, potentially seeking more flexible and efficient space solutions.
Cincinnati Industrial Market Reports
Absorption was negative 22,000 SF this quarter, bringing YTD absorption to just over 700,000 SF. Leasing volume has decelerated with only 1.47MSF of transactions completed this quarter, over 55% of those leases were completed in Class A warehouses. After four quarters of increasing vacancy coming into 2024 the market saw a third consecutive quarter of no movement in the vacancy rate. Rent growth slightly increased by 1.1% quarter-over-quarter.