Strong demand for new bulk warehouse product continues as market awaits new deliveries
Cincinnati, OH, April 11, 2016 – Leasing activity continued its momentum through Q1 2016 with over one million square feet of positive net absorption, according to CBRE’s Industrial MarketView. The overall availability rate for the market declined slightly from 5.3 percent to 5.0 percent, as a result of new speculative product quickly being leased and tenants locking up large bulk space in northern Kentucky.However, the construction pipeline looks promising for tenants looking for space. Multiple buildings are expected to come online in 2016, including IDI Gazeley’s 994,013-square-foot building at Park North in Monroe and its 442,304-square-foot building at Park South in Richwood, Kentucky. 2.1 million square feet of space is expected to come online vacant and ready for occupancy in Q2 2016.
“The Cincinnati and northern Kentucky industrial market continues to have strong fundamentals, even as new product is added to the market,” said Tim Schenke, first vice president in CBRE’s Cincinnati office. “It is very tough for any developer to find easily developable land positions in Greater Cincinnati, which has helped our market not get overbuilt too quickly.”
Other highlights from the report include:
- In the Northern Kentucky submarket, tenants have leased large amounts of bulk space.
- Overall average industrial asking net lease rates decreased slightly to $3.78 per square foot in Q1 2016.
- New construction for the quarter totaled nearly 876,400 square feet.
- Cincinnati ranked number one in a KPMG’s study that analyzed the most business-friendly cities in the U.S. based on key cost components including taxes, labor, facilities, transportation and utilities.
CBRE’s Cincinnati office provides a complete spectrum of commercial real estate services including Asset Services, Brokerage Services, Corporate Services, Debt and Equity Financing, Facilities Management, Industrial Services, Investment Sales, Office Services, Project Management, Research and Valuation and Advisory Services.
To speak to a CBRE professional about this report and other market trends, please contact Joe Ludwig at +1 513 369 1305 or joe.ludwig@cbre.com. Click here to download the full report.
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CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.