By James Flick, Vice President of Research and Marketing
Cincinnati Office Market
The Cincinnati region continues to rack up accolades for its economic recovery and business friendliness. In May, the website NerdWallet, which provides online tools and research to educate consumers about financial decisions, ranked the “Best Places to Start a Business in Ohio.” Cincinnati boasted four of the top 10 locations with Blue Ash ranking #1, Sharonville #6, Kenwood #7, and Springdale #9. Additionally, Cincinnati ranked as the #3 “Metro Area for Economic Development in the US” by Site Selection Magazine (March 2015).
The successful recovery of the region is showcased by the labor market, which has added 26,000 jobs in the last 12 months. The unemployment rate for the MSA now sits at 4.7%, which is 60 basis points better than the national figure and 50 basis points better than the State of Ohio.
The second quarter of 2015 was highlighted by 68,763 square feet of positive net absorption. It was the fourth straight quarter Cincinnati businesses have positively absorbed office space in the Cincinnati market. In total, the region has seen 201,223 square feet positive net absorption on the year.
Overall market vacancy improved 21 basis points to 22.07%. In the last 12 months market vacancy has improved 70 basis points.
The region’s strongest drivers for demand in the second quarter of 2015 were…
To read the rest of the Second Quarter 2015 Cincinnati Office Market Snapshot click here.
Dayton Office Market
The job market in the Dayton region has been steadily improving since 2010 when unemployment reached as high as 12.9%. Currently, the unemployment rate is resting at 5.0%, which is much lower than the second quarter of 2014 where it was 5.8%. The overall change for the 12 month period was a 80 basis point improvement. This reduction can be contributed to the region adding approximately 3,900 jobs in the last 12 months. The region’s unemployment rate remains slightly better then the national rate of 5.3%.
According to the Dayton Area Chamber of Commerce’s “2015 Dayton Region Economic Outlook” over the next two years there is going to be a concerted effort by the Chamber and Montgomery County to increase the logistics market potential. Part of this plan is t
o create a Dayton Area Logistics Association for the education and advocacy of new and existing companies.
The Dayton office market experienced 37,658 square feet of positive net absorption during the second quarter of 2015. It was the fourth straight quarter the market has seen positive net absorption. Year to date, Dayton area businesses have absorbed over 77,000 square feet of office space. The majority of this activity has taken place in class B buildings.
The regions strongest drivers of demand in the second quarter of 2015 were…
To read the rest of the Second Quarter 2015 Dayton Office Market Snapshot click here
James Flick joined the company in 2010. As Vice President, Research and Marketing, he is responsible for overseeing the Marketing and Research activities in our Cincinnati and Dayton offices. This includes the production of presentations, studies, and statistics on topics affecting the regional economy as well as the local office, industrial, retail and multi-family markets.