IRR-Cincinnati Mid-Year Viewpoint 2015 Local Market Report - Industrial
As the nation continues to recover from the recession, the industrial sector of the greater Cincinnati area is likewise showing signs of recovery. Some new construction has occurred, with speculative projects planned in the Monroe area and a new project under way in Northern Kentucky. The Cincinnati industrial market will benefit from a stable to slightly growing population base, and higher income and education levels.
Although the Cincinnati MSA experienced minimal to nonexistent job growth for several years around the recessionary period, job growth turned positive in 2011 and has been improving ever since. The Cincinnati area has even maintained a generally lower unemployment rate than the rest of Ohio during these past couple of years. Moreover, the Cincinnati MSA exhibits both a higher rate of GDP growth and a higher level of GDP per capita than Ohio overall. All of these factors will continue to support the current recovery.
Overall, vacancy has been improving since 2010. Vacancy in the bulk market is extremely low with limited large-user space currently available. Average effective rental rates have begun an upward trend in most areas, after showing sporadic decline in 2013. Based on current conditions, the Cincinnati industrial market appears to be balanced and in the very early stage of expansion. Overall, the industrial market is showing an upward trend and one that is expected to continue into the foreseeable future as conditions throughout the overall economy improve.
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IRR Mid-Year Viewpoint 2015 comprises a National Overview report and 300+ two-page Local Market Reports for all key property types as well as additional resources, including metrics methodology, graphs, and tables; these free reports may be downloaded from IRR’s site here.