Cincinnati Office Market
Cincinnati’s office market improved this quarter: year-to-date net absorption reached 213,000 SF; vacancy fell to 22.9% from 23.4%; and 209 Greenup St. was the year’s first construction delivery. The third quarter had the slowest leasing activity since 2021 as occupiers favored renewals, extensions, and rightsizing amid hybrid-policy shifts. Supply tightened as sublease and direct availability fell with withdrawn listings, renewals, and second-gen absorption. With limited deliveries, selective conversions, and no new starts for a third straight quarter, availability should trend flat to lower and new builds will likely remain predominantly build-to-suit or heavily preleased. Rents are rising - $20.69/SF year-to-date (up 5.9%) - with further gains expected into the fourth quarter of 2025 as sublease rates near parity with direct rates and the quality gap widens (Class A $22.60/SF vs. Class B $18.60/SF), keeping pricing power with landlords.
Cincinnati Industrial Market
Cincinnati’s industrial market saw negative net absorption of 292,000 SF this quarter but remains positive year-to-date (1.3 million SF), with leasing activity (new leases and renewals) surging to 2.9 million SF as tenants acted on delayed decisions. Despite vacancy rates improving from last year, they remain above historic averages amid elevated sublease availability. Cincinnati industrial rents posted a slight year-over-year decline for the first time since 2019, with flat and decreased rents expected for the remainder of the year. Class A industrial space accounted for 49.3% of Cincinnati’s leasing volume – the highest share since 2021 – as tenants continue to favor modern, high-quality facilities over older properties. Expect continued stability in leasing, minimal new construction deliveries and starts, and flat to slightly lower rents for the remainder of the year unless demand strengthens considerably.