By Jarrett Hicks, Senior Research Analyst
Construction accounted for a great deal of the real estate activity in Greater Dayton in the third quarter of 2015. Nine different projects comprising 624,000 square feet were completed this quarter, including large facilities for Whirlpool, Meijer and F&P America Manufacturing in the Upper North submarket. 422,900 square feet of space is currently under construction across the region.
Vacancy has been steadily falling in Greater Dayton for the past ten quarters, and currently stands at 9.72%. In the third quarter, positive absorption was 859,296 square feet, due to a combination of construction deliveries and leasing activity. Absorption was positive in all three product types and in 5 of the 6 Dayton-area submarkets. Year-to-date, absorption is now over 1.1 million square feet.
Leasing activity was strong in the third quarter. General Motors leased the entire 204,800 square foot Moraine Logistics Center on Gettysburg Road. While the building was only partially vacant at the time of the lease, the GM deal was among the largest leases in the Dayton market in recent years. After relocating from Progress Park in Moraine, WCR leased 60,000 square feet at 2377 Commerce Center Boulevard in Fairborn
Four building sales of over $1 million took place in the third quarter. The largest of these sales was to Austin-based investor AIC Ventures, which purchased the 100,750 square foot Gem City Engineering building on Leo Street in Dayton for $2.8 million ($28/SF). The Schaefer Group, a Dayton-based furnace manufacturer, purchased the 89,189 square foot building at 1300 Grange Hall Road in Beavercreek for $1.35 million ($15/SF).
After a very robust third quarter of activity, vacancy should continue to drop, but absorption is likely to be minimal for the remainder of 2015.
To read the rest of the Third Quarter 2015 Dayton Industrial Market Snapshot click here.