DAYTON—One year ago, the unemployment rate in this metro area was significantly higher than the national average, but since then it has plummeted to just 5.0%, while the US rate now stands at 5.8%. The region's improving jobs picture was helped by its industrial market, which in the fourth quarter saw 2.36-million-square-feet of positive absorption, bringing the total absorption for the year up to 4.6-million-square-feet, according to statistics just published by DTZ.
The vacancy rate has sunk from 14.8% one year ago to 12.1%, and company researchers say it should sink even further this year. The greater demand has also kicked off new construction. As reported in GlobeSt.com, in 2013 nearly 1.4-million-square-feet of new industrial space for the region were completed, including 395,000-square-feet in the fourth quarter. And during this year's fourth quarter, five projects with 1.85-million-square-feet were delivered to the market.
The completed projects include the 1.8-million-square-foot Procter & Gamble distribution warehouse in suburban Union. Prologis recently sold the structure, among the largest projects in the Dayton area in recent years, to the private investment firm Cole Capital, a division of American Realty Capital Properties, for $85.7 million.
Developers currently have about 629,000-square-feet of space currently under construction in Greater Dayton. Most of the major projects are concentrated in the Upper North submarket, including a 200,000-square-foot Whirlpool plant expansion in Greenville, a 173,000-square-foot Meijer dairy production facility in Tipp City and a 94,000-square-foot addition to Airstream's headquarters in Jackson Center.
“Looking ahead, 2014 ended with a great deal of positive absorption, mainly due to the delivery of the Procter & Gamble distribution warehouse and some large bulk warehouse leases,” DTZ researchers say. “Unlike third quarter, the largest leases of the fourth quarter were in the bulk warehouse category.” For example, Pratt Industries leased 137,500-square-feet at 98 Quality Ln. in West Carrollton. “Looking ahead, the remaining 600,000-square-feet of build-to-suit projects currently under construction will be delivered in 2015. More proposed projects and building additions are in the regional pipeline, and will significantly affect the level of net absorption in the Dayton market.”
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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.
