CINCINNATI—The vacancy rate among industrial properties in the Cincinnati metro area has hovered between four and six percent for several years, and now stands at 4.8%, even though developers started construction on about nine million square feet of new projects since the beginning of 2015. The market maintained its momentum in 2016 with more than 5.3 million square feet of positive net absorption, the most net absorption since 2005, according to CBRE Research's latest industrial MarketView.
Developers completed 4.6 million square feet of new space in 2016, up 53% from the three million square feet completed in 2015. In a remarkable show of confidence by developers and lenders, 78% of the completions in 2016 were speculative projects. And all the signs point to a healthy 2017.
“There are a lot of groups out there looking for space,” Tim Schenke, first vice president at CBRE's Cincinnati office, tells GlobeSt.com. In fact, he knows of several big deals that were expected to close in late 2016 that got delayed, but should close in the next few months, and take another couple of million square feet off the 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.
