Cincinnati Office Market
This quarter, Cincinnati’s office market saw positive net absorption (up to 134,000 SF YTD), but overall activity remains slow with no new construction starts or completions reported. Leasing activity continues to lag due to persistent remote/hybrid work, economic uncertainty, and aging office inventory, with most tenants favoring flexible terms and high-quality, modernized spaces. Sublease activity is rising slightly as tenants adjust space needs, while direct availability remains stable; major changes are unlikely unless economic conditions shifts, or new supply enters the market. Asking rents are rising overall, particularly for renovated or well-located spaces, with Class A rates holding historically high despite minor dips, and Class B rents gradually increasing as tenants pursue value-driven options.
Cincinnati Industrial Market
Cincinnati’s industrial market saw negative net absorption of 292,000 SF this quarter but remains positive year-to-date (1.3 million SF), with leasing activity (new leases and renewals) surging to 2.9 million SF as tenants acted on delayed decisions. Despite vacancy rates improving from last year, they remain above historic averages amid elevated sublease availability. Cincinnati industrial rents posted a slight year-over-year decline for the first time since 2019, with flat and decreased rents expected for the remainder of the year. Class A industrial space accounted for 49.3% of Cincinnati’s leasing volume – the highest share since 2021 – as tenants continue to favor modern, high-quality facilities over older properties. Expect continued stability in leasing, minimal new construction deliveries and starts, and flat to slightly lower rents for the remainder of the year unless demand strengthens considerably.