Cincinnati’s warehouse/ distribution market finished the second quarter of 2012 with a vacancy rate of 11.9%, down from 12.9% 12 months earlier and down 40 basis points from the prior quarter. The rate was unchanged in July. Net absorption continues to perform well here. The second quarter of 2012 posted a welcome 412,000 square feet of positive net absorption after the first quarter posted 275,000. The market is on its way to reaching the 900,000 square feet recorded for all of 2011. Reis’ latest construction data indicate 553,694 square feet of such space are under construction at the Monroe Logistics Center in Monroe for completion in 2012. For Flex/R&D space, Reis reports second quarter vacancy at 15.1%, down 60 basis points for the quarter and down 310 basis points year-over-year. The rate rose 10 basis points in July The second quarter saw positive net absorption at 69,000 square feet, but the first quarter’s negative performance means a year-to-date total of only 23,000 square feet. No Flex/R&D space completed here in 2011 and none is forecast for 2012.
For warehouse/distribution space, Reis reports second quarter average asking and effective rents of $3.14 psf and $2.90 psf, up 0.6% and 0.7% over the quarter and up 0.3% and 1.0%, respectively, over 12 months. July data show no change. Rents lost ground in 2011, so any increases are welcome. For Flex/R&D space, Reis reports average asking and effective rents of $5.96 psf and $5.43 psf, up 0.2% and 0.4%, respectively, over the quarter, and up 0.2% and 1.1%, respectively, over 12 months. July data show 0.2% losses for both measures. Reis expects minimal gains of only 1.3% and 1.4% for warehouse/distribution asking and effective rents in 2012, while Flex/R&D rent gains will be slightly higher at 2.5% and 3.0%.
Cushman & Wakefield report an overall second quarter 2012 vacancy rate of 10.2%, down 40 basis points from 12 months earlier. This source reports a direct asking rent of $3.25 psf for all industrial space, up from $3.38 psf one year earlier.