by Dan Rafter
Expect spec industrial construction this year in the Cincinnati market. As Cassidy Turley’s fourth quarter 2013 market snapshot shows, there simply isn’t enough industrial space in the market today for the demand.
According to Cassidy Turley’s latest report, the Cincinnati market absorbed nearly 5.2 million square feet of industrial space in 2013.
This is good news, and yet more evidence that the industrial market is poised for big things in 2014 across the Midwest. Just yesterday, Lou Serrone, a broker with Kansas City’s Block Real Estate Services, sent Midwest Real Estate News a message about the industrial demand in his market:
“The Kansas City industrial market is also experiencing strong activity,” he wrote. “And we are poised to have a stellar year as well.”
And Midwest Real Estate News has already covered the industrial booms occurring in cities such as Louisville and Indianapolis.
In Cincinnati, Cassidy Turley reported that the overall industrial vacancy rate continues to fall to levels seen before the country’s recession. As of the fourth quarter of 2013, the industrial vacancy rate stood at 6.35 percent, compared to 6.55 percent in the third quarter. More than 615,000 square feet of industrial space was absorbed in the fourth quarter in the region.
Things are especially tight in the Northern Kentucky bulk market. Cassidy Turley reports that this area’s bulk market vacancy rate now stands below 2 percent. The Class-A portion of Northern Kentucky’s bulk market only has a vacancy rate of 0.6 percent.