CINCINNATI – April 21, 2014 – Cassidy Turley, a leading commercial real estate services provider in the U.S., announced today that the industrial vacancy rate for the Cincinnati region has reached its lowest point in seven years. Low vacancy, combined with over 1.2 million square feet of positive net absorption and new construction are clear signs that the Cincinnati industrial market is extremely active and growing.
“In 2014, new supply is projected to reach a six-year high,” said Jarrett Hicks, Senior Research Analyst in Cassidy Turley’s Cincinnati and Dayton offices. “Currently, 2.7 million square feet of industrial space is under construction across the Greater Cincinnati market, including 1.6 million square feet of speculative bulk warehouse product. We expect to see more large scale construction projects break ground in the next few months.”
Q1 2014 Cincinnati Industrial Market Snapshot Highlights:
(Click here to view the full report.)
- Quick Summary: After an extremely active market in 2013 with more than 5 million square feet of net absorption, the first quarter of 2014 started strong with 1.2 million square feet of net absorption. This marks the 11th consecutive quarter of positive activity.
- Growth Areas: Several significant transactions took place this quarter, includingWayfair’s lease of the 525,000-square-foot former Gap Distribution Center at Park West International Business Park in Hebron, KY; IndCor’s acquisition of a 760,885-square-foot, five-building portfolio from Long Ridge Industrial for $22 million; and JPMorgan Asset Management’s three-building purchase (1.06 million square feet) from DCT at the Park West International Business Park for a combined $42.6 million.
- Vacancy Rates: Quarter-to-quarter vacancy rates dropped 41 basis points from 6.24% in the fourth quarter of 2013 to 5.83% in the first quarter of this year.
- Outlook: With the completion of three large bulk buildings, the Cincinnati industrial market will grow by more than 1.5 million square feet this year. Despite tightening supply, the recent trends of declining vacancy combined with an active leasing and investment sales environment should continue into the second quarter and beyond.
About Cassidy Turley
Cassidy Turley is a leading commercial real estate services provider with more than 4,000 professionals in more than 60 offices nationwide. With headquarters in Washington, DC, the company represents a wide range of clients—from small businesses to Fortune 500 companies, from local non-profits to major institutions. The firm completed transactions valued at $25.8 billion in 2013, manages approximately 400 million square feet on behalf of institutional, corporate and private clients and supports more than 24,000 domestic corporate services locations. Cassidy Turley serves owners, investors and tenants with a full spectrum of integrated commercial real estate services—including capital markets, tenant representation, corporate services, project leasing, property management, project and development services, and research and consulting. Cassidy Turley enhances its global service delivery outside North America through a partnership with GVA, giving clients access to commercial real estate professionals in 65 international markets. Please visit www.cassidyturley.com for more information about Cassidy Turley.