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 Supply tightened as sublease and direct availability fell with withdrawn listings, renewals, and second-gen absorption.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
Net absorption is running ahead of 2024 but remains below recent-cycle highs, while leasing velocity is muted as tenants right size, deals skew smaller, and approval timelines lengthen. Supply is tight: construction deliveries are below 2024, only 0.3% of inventory is under construction (sub-1% since the third quarter of 2023), no speculative projects are underway, and large power-ready blocks are limited. Price and mix: asking rents are up 1.3% year over year (lowest growth since 2020) and broadly stable with more concessions on older product. Sublease availability has dipped since the second quarter but remains elevated. Class A captures 38.7% of leasing, the lowest share since 2020.