The industrial vacancy rate for the Cincinnati market reached its lowest point in the last seven years during the first quarter of this year, according to the latest research from Cassidy Turley.
Jarrett Hicks, senior research analyst in Cassidy Turley’s Cincinnati and Dayton offices, said that low vacancy rates combined with more than 1.2 million square feet of positive net absorption and new construction are signs that the region’s industrial market is active and in a growth period.
Hicks said that 2.7 million square feet of industrial space is under construction in the greater Cincinnati market. This includes 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,” Hicks said.
The first quarter of this year marked the 11th consecutive quarter of positive activity in the Cincinnati-area industrial market.
Some of the bigger news hitting the market during the quarter included Wayfair’s lease of the 525,000-square-foot former Gap Distribution Center at Park West International Business Park in Hebron, Ken. IndCor acquired a 760,885-square-foot five-building portfolio from Long Ridge Industrial for $22 million.
The quarter also saw JPMorgan Asset Management’s three-building purchase — totaling 1.06 million square feet — from DCT at the Park West International Business Park for a combined $42.6 million.
Quarter-to-quarter vacancy rates dropped 41 basis points from 6.24 percent in the fourth quarter of 2013 to 5.83 percent in the first quarter of this year.
And this is just the beginning of what looks like it will be a strong industrial year for the Cincinnati region. Cassidy Turley reported that with the completion of three large bulk buildings in the region, the Cincinnati industrial market will grow by more than 1.5 million square feet this year.
