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Cincy Industrial Setting Records for New Construction

CINCINNATI—The submarket of Northern KY has become an important player in national distribution networks.

By Brian J. Rogal | brianjrogal | | Updated on April 05, 2016

 

cin-dermody_cvg_01.-crop (2) Dermody’s new, nearly 900K, facility for Wayfair, Inc. in Hebron, KY.
CINCINNATI—The industrial market here has just reached an important milestone. In the first quarter developers had 4.6 million square feet of new space under construction, the most ever in the last 15 years, according to a new report published by Cushman & Wakefield . Furthermore, users are absorbing the new space as it comes online, and the historically low vacancy rate probably means the good times will continue for some time.    C&W points to another study released on March 30 that shows one of the reasons the industrial market here is booming. “According to the 2016 Competitive Alternatives study by accounting firm KPMG LLP , the Cincinnati region is the most cost-friendly city to do business among the 31 largest US metro areas, those with populations of 2 million or more.”  “The KPMG study reveals that Cincinnati business costs are 6% below the US baseline,” C&W adds. “Furthermore, Cincinnati has the lowest property-based taxes and industrial facility lease costs, and second lowest industrial land and salary costs.” As reported in GlobeSt.com, the industrial market in Northern KY, just across the Ohio River, has been particularly strong. The submarket contains the majority, about 2.5 million square feet, of the new space under construction. Reno, NV-based Dermody Properties will finish an 898,000 square foot facility, one of the region’s most ambitious, for Wayfair Inc. near the Cincinnati/ Northern Kentucky International Airport. And Atlanta-based IDI Gazeley Brookfield Logistics Properties will in June finish up Building I in Park South at Richwood, a 442,300 square foot class A modern bulk distribution facility. Net absorption totaled 792,000 square feet in the first quarter, down from the more than 1 million square feet of quarterly net absorption regularly recorded over the past year.

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