Cincinnati Office Market
Demand remained soft with negative net absorption, pushing vacancy to 24.2% for the year, well above the 20-year market average of 13.7%. Leasing activity slowed with the fourth quarter posting 235,000 SF, bringing 2025 to 1.3 million SF, about 40% below the seven-year annual average. Availability stayed elevated with sublease availability at 1.9%, the lowest it has been since the third quarter of 2023, and direct availability saw no major swings. Supply was muted with one new delivery in 2025, after none in 2024. There were four consecutive quarters with no construction amid financing headwinds and high vacancy. Full-service asking rents averaged $20.42/SF.
Cincinnati Industrial Market
Construction deliveries were at a recent low of 1.1 million SF in 2025 as higher borrowing costs, construction inflation, and fewer speculative starts thinned the pipeline. Net absorption reached 1.5 million SF, an improvement over 2024 but still below historical norms, with demand titling toward smaller, higher-spec spaces amid softer goods flows and tariff frictions. Vacancy fell to 5.9% from 6.2% in 2024 as demand outpaced new inventory, moving closer to the 5.3% long-term trend. Leasing volume slowed to 1.7 million SF in the fourth quarter from 2.1 million SF in the third quarter, reflecting budgeting deferrals, slower approvals, fewer move-in ready options, and a greater mix of smaller renewals and short-term extensions.