"Very few large tenants are out looking for space and many have reduced their current space needs by cutting back at renewal time or subletting portions of their space," says Bill Schneller, CBRE's vice president in Cincinnati. He sees this trend continuing for "at lease another quarter."
Examples include Clopay, which vacated more than 39,000 sf; Key Bank, which downsized by more than 40,000 sf, and IBM, which will be vacating 60,000 sf of Downtown space in first quarter 2003. In addition, Convergy's, Cinergy, Cincinnati Bell, and Procter & Gamble are among the major Downtown tenants that have either slowed expansion or reduced their office space needs.
Available sublease space adds approximately 400,000 sf to direct vacant space Downtown, according to the research, and raises total availability to about 16.46%, an increase of 4.19 percentage points compared with third-quarter 2001.
Completion of 159,753 sf of renovated space in this third quarter added to availability. Meanwhile, the Queen City Square development planned by Western Southern, which could add as much as 800,000 sf, may begin in 2003 if the developer pre-leases 50% of the projected space.
Despite these factors, average asking full-service lease rates remained stable in third quarter this year at $18.33 per sf.
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