A strong start to the year. That’s what the Cincinnati-area industrial market is experiencing, according to the latest research from Colliers.
According to Colliers’ first quarter 2026 Greater Cincinnati industrial report, the region’s industrial market began 2026 with even more momentum than it enjoyed in 2025. In fact, the Cincinnati-area industrial market posted its highest net absorption numbers in at least two years in the first quarter of this year.
Colliers said that the strong absorption numbers along with increased rental rates, steady construction activity and falling vacancy rates showcase a market that continues to show its strength.
The numbers tell the tale. According to Colliers’ research, the Cincinnati industrial market saw an overall vacancy rate of 5.3% as of the end of the first quarter. That’s unchanged from the fourth quarter of 2025, demonstrating just how stable this market is.
The Cincinnati industrial market began the year with 2.36 million square feet of industrial absorption during the first quarter. This solid number was boosted by a major acquisition by Walmart.
Industrial rents continued to rise, too, increasing to an average of $6.26 a square foot in the first quarter from $5.93 in the fourth quarter of last year. That is trend that Colliers says is certain to remain throughout the rest of 2026.
The Cincinnati industrial market also had 2.5 million square feet in its pipeline as of the end of the first quarter. The market also saw 184,000 square feet of new industrial space delivered the first three months of 2026.
The first quarters net absorption numbers are driven by the Cincinnati region’s traditionally strong submarkets. This includes the Airport submarket, which notched more than 864,000 square feet of positive net absorption in the first quarter, and the Tri-County submarket, which recorded more than 298,000 square feet of positive net absorption.
The Monroe/Middleton submarket notched more than 1.1 million square feet of positive net absorption in the first three months of the year, though much of this number was made up of Walmart’s purchase of a Core5 building in Monroe.
Colliers also pointed to several key occupier trends during the early months of 2026. First, flex space remains in high demand, with rents for these properties steadily increasing because of a lack of new supply.
Bulk space is seeing a steady increase in tenant activity through the early months of the year. This is helping to decrease vacancy in this asset class.
There are some challenges. Colliers said that vacancies remain in larger industrial buildings throughout Northern Kentucky. These higher vacancy rates are limiting new construction of larger properties in this submarket.
Land remains difficult to find, Colliers said. Because of a lack of sites, Colliers says that a growing number of owners are choosing to expand their current industrial spaces instead of searching for new space. This also means that landlords remain firm in their pricing.
Owner-user sales continue to make up most industrial transactions in the Cincinnati market. Investment sale opportunities are substantial in size and are institutional-type investments. Smaller private equity investment firms and private investment groups remain quiet to begin the year, Colliers said.
Investors are interested in industrial outdoor storage in the Cincinnati market, an interest that Colliers says will not diminish this year. Colliers’ analysis of sales data show an increase in sales volume, average sale price and sale price per-square-foot. Much of this sales data is skewed positively, though, because of Walmart’s big $111 million purchase of 760 Encore Drive.
The big takeaway from Colliers’ research, though? It appears that Cincinnati’s industrial market is poised for another strong year in 2026.
