Cincinnati’s industrial market hit a milestone in the fourth quarter of last year, recording a net absorption of 1 million square feet in the last quarter of the year.
Cushman & Wakefield reported that the Cincinnati market hit this number despite having an industrial vacancy rate under 5 percent.
Jarrett Hicks, senior research analyst in Cushman & Wakefield’s Cincinnati and Dayton offices, said that the net absorption rate of 5.81 million square feet in the Cincinnati industrial market easily beat the 2014 mark of 4.78 million square feet.
Cushman & Wakefield reported that the Cincinnati office market had a strong 2015, too. Area businesses absorbed more than 327,000 square feet in the fourth quarter, bringing total net absorption for the entire last year to more than 930,000 square feet.
The Cincinnati industrial market during the past two quarters saw the delivery of more than 2 million square feet of bulk warehouse space, according to Cushman & Wakefield. All that new industrial space drove Class-A bulk vacancy rates here to 5.1 percent, up from a miniscule 1.3 percent in the second quarter of 2015. Class-B vacancy rates continue to fall because of the leasing activity in the central and northern Kentucky submarkets, Cushman & Wakefield reported.
Cincinnati’s central submarket saw the most demand with 471,187 square feet of net absorption, followed by the northwest with 319,456 square feet.
Cushman & Wakefield researchers predicted that the market’s vacancy rate will remain below 5 percent for the next 12 months.