by Dan Rafter
Bob Fessler expects big things from Cincinnati’s commercial real estate market this year. Fessler, managing director for CBRE’s Cicinnati office, says that the region is on a hot streak, and it’s one he doesn’t predict will end anytime soon.
Fessler is especially excited about the city’s downtown core. As quoted in CBRE’s 2015 Cincinnati Market Outlook, Fessler said, “The live, work and play dynamic is accelerating and transforming our city into a 24-hour walkable urban environment.”
CBRE’s 2015 outlook for Cincinnati, then, is a positive one. Like many markets across the Midwest, this Ohio city is poised for a busy year of commercial real estate activity in 2015.
CBRE is especially high on Cincinnati’s industrial market, which the company said will continue its expansion in 2015. Total construction in this sector will hit 3 million to 4 million square feet. CBRE also predicts a strong demand for Class-A and Class-B industrial assets in the 50,000-square-foot to 500,000-square-foot range. This demand should cause rental rates to grow between 5 percent and 10 percent throughout the year.
The multi-family market here should be strong, too, with CBRE predicting occupancy rates in this sector at an impressive 93 percent to 95 percent. Expect nearly 2,500 new multi-family units to hit the market this year, the majority of them coming in the second half of 2015.
You can read more about CBRE’s positive outlook for Cincinnati here.