Local corporations are expanding in Cincinnati. And that’s good news for the city’s office market, according to a recent report from Marcus & Millichap Real Estate Investment Services.
According to Marcus & Millichap, by the end of 2013 vacancy rates in the Cincinnati market’s office sector will fall to 18.2 percent. Thats a drop of 30 basis points from the end of 2012 and follows a drop of 60 basis points one year earlier.
Rents should rise, too, but about 0.6 percent. Marcus & Millichap predicts that asking rents in the Cincinnati office market should hit $15.03 a square foot by the end of 2013. This is an improvement from last year, when asking rents in the sector fell 1.9 percent.
What’s behind the improvement? A lot of it can be traced to local businesses growing. Marcus cites, for example, customer-science company dunnhumbyUSA, which began work on a new $129 million headquarters in downtown Cincinnati, the dunnhumby Centre. This 280,000-square-foot building is scheduled for completion by the end of 2014.
Ameritas Life Insurance Company is adding space at its Forest Park campus. The company is building a 70,000-square-foot building scheduled for completion in early 2014.
