CBRE Report: Cincinnati's Industrial Sector Has a Strong End to 2017
10 1 2018
The Greater Cincinnati industrial market continues its streak with 914,432 square feet of positive net absorption in Q4 2017, according to a new report from CBRE.
“2017 was another strong year for the Greater Cincinnati and Northern Kentucky industrial market with close to 5 million square feet of positive net absorption and just over 5 million square rel="noopener noreferrer" feet of new construction,” said Tim Schenke, senior vice president at CBRE’s Cincinnati office.“Rental rates and property values continue to rise due to supply constraints and increasing demand from companies and investors alike, for quality warehouse facilities. In 2018, we expect more of the same.”
The Northern Kentucky and Northeast submarkets had the largest amounts of gross absorption in Q4 2017 with 724,580 square feet and 717,921 square feet, respectively.
The vacancy rate increased by 10 basis points from 4.3% in Q3 2017 to 4.4% in Q4 2017. The increase was driven by the completion of five speculative bulk warehouse, totaling 1.5 million square feet. Construction activity also continues to keep pace with demand as new product is leasing very well.
Other highlights from the report:
- The availability rate remained steady at 4.8% in Q4 2017.
- Average asking net lease rates increased from $4.06 per square feet in Q3 2017 to $4.09 per square feet in Q4 2017.
- New construction for the quarter totaled 2.4 million square feet.
You can read the full report here.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.