Cincinnati Office Market
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
Absorption was 578,362 SF this past quarter, bringing 2024 total net absorption to 1.3 million SF. Class A Warehouse leases rose to 40.0% of Cincinnati’s leasing activity from 33.8% in 2023. In the fourth quarter, Cincinnati saw a decrease in industrial sublease space availability, reflecting stabilization in lease renewals and heightened demand for existing spaces. Construction activity in Cincinnati was low in 2024, with only two spec buildings under construction as the year concluded.