CINCINNATI—The economic recovery has begun lifting many Midwestern cities, and the Cincinnati area is no exception. According to a new report from the commercial real estate firm Cassidy Turley, the industrial sector there had a very active fourth quarter, with more than 615,000-square-feet of net absorption. It was the tenth consecutive quarter of positive net absorption.
“Demand for industrial space across Greater Cincinnati was impressive throughout 2013,” says Jarrett Hicks, senior research analyst for Cassidy Turley's Cincinnati office. “Overall net absorption totaled nearly 5.2 million square feet for 2013, signifying the highest level of demand since 2005.”
The vacancy rate among industrial properties fell from 6.55% in the third quarter to 6.35% and is below pre-recession levels. Researchers attribute the drop to activity among class B bulk warehouses and freestanding leases in the Northwest submarket. A lack of supply, especially in bulk distribution, has also kept rates low. However, “three building projects comprising 215,000-square-feet were delivered to the market for the quarter,” and “nearly 2.2-million-square-feet of space remains under construction across the Cincinnati industrial market.”
In 2014, they add, “demand for space, especially in class A, should continue to be solid, and a tighter supply will result in increasing lease rates.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
