As expected, more than 2.1 million square feet (MSF) of speculative modern bulk distribution space was delivered in Q3 2016. The delivery of three large buildings in a supply-constrained market was certainly welcome, but overall available inventory remains limited.
Despite the addition of 2.1 MSF of new and vacant space, the direct vacancy rate in Q3 for the Cincinnati market only increased by 30
basis points over the prior quarter.
Direct vacancy currently stands at 4.2%, which is over 20 points lower on a year-over-year basis. Q3 2016 also represents the seventh consecutive quarter of market vacancy under 5.0%. When compared to Q3 2015, all product categories have experienced drops in vacancy, with the exception of Class A bulk. Within the bulk distribution category, total vacancy is now 6.2% while Class A vacancy is 7.1%, due in large part to the delivery of new bulk buildings.
Source : Cushman & Wakefield