The Cincinnati market continues to buck the trends that were impacting the retail sector long before the pandemic-induced recession turned the world upside down.
The Cincinnati market continues to buck the trends that were impacting the retail sector long before the pandemic-induced recession turned the world upside down. Leasing activity remained steady with this quarter’s 233,577-square-foot absorption total driven by big box discounters, fitness operators and expansions of existing centers. Construction activity has been limited over the past few years and most new projects deliver nearly fully leased. The Cincinnati economy has recovered faster than many regions and, after peaking above 14% last April, the unemployment rate has fallen to 5.3% as of February, 2021. Rental rates are on the rise with community centers leading the way posting an annual gain of 3.1%.
- The Cincinnati retail market posted positive net absorption of 233,577 square feet during the quarter.
- Vacancy decreased by 40 bps to 6.8% and has fallen by 110 bps, year-over- year.
- Construction activity, totaling a modest 236,241 square feet, is focused on ground level retail in mixed-use developments and strip centers in key trade areas.
- Driven by demand for Class A locations, rental rates continue to increase, posting a gain of 1.5%, year-over-year, to $14.10 per square foot.