Cincinnati Office Market
During the first quarter, the Cincinnati office market witnessed minimal activity. The vacancy rate held steady, despite a slight negative absorption. The period was the slowest for leasing activity since 2021, attributed to economic uncertainties such as interest rates, inflation, and tariffs, coupled with the ongoing shift to remote and hybrid work models, prompting businesses to reassess their real estate needs. The absence of new office construction led to a strategic focus on renovating and repurposing existing spaces, emphasizing the creation of flexible workspaces and enhanced technological infrastructure to match evolving workplace needs without expanding physical footprints. Rental rates in Cincinnati maintained stability. This stability can attract businesses looking for predictable costs, while Class A spaces saw increases in rates due to heightened demand.
Cincinnati Industrial Market
The Cincinnati industrial market began the year with light construction deliveries and posted a positive net absorption of 1.6 million SF which lowered the vacancy rate to 5.7%, highlighting steady demand despite developer caution. Cincinnati’s leasing activity saw its slowest start since 2019, driven by economic uncertainties like interest rate hikes and supply chain disruptions. Companies are reevaluating space needs, leading to more cautious leasing decisions. Class A warehouse leasing is at a historic low, making up only 13.41% of total activity, due to supply chain and cost issues. Positive absorption owes to mid-2024 leasing surge, yet economic uncertainties keep developers cautious. Steady quarterly increases in sublease availability have resulted in the highest availability level seen since 2021. Consistent demand has kept the sublease market from becoming too inflated, but tenants continue to add space in measured amounts. Construction activities remain low with a focus on build-to-suit projects.
Download Cincinnati Industrial Market 1Q25