According to our 2014 Retail Market Survey, the Dayton Regional Retail Market remained relatively stable during 2014 as market gains and expansions were countered by greater vacancies in certain submarkets. The overall market showed signs of continued recovery, but at a slower pace.
The vacancy rate for the Dayton Regional Market rose to 15.35% during 2014, up from 13.85% in 2013. This 1.5% increase was mainly due to weakness in the Xenia and Lebanon-Middletown markets. Within the Dayton regional market, a negative absorption of (209,441) square feet of space occurred during the 2014 survey period. Of the outlying regional submarkets, Upper Valley and Franklin-Springboro were the most active in 2014, with stable occupancy levels reflected in these submarkets.
The vacancy rate for the Dayton Area Market (which includes the Dayton North, South, East, West, and CBD markets) rose slightly to 13.73% during 2014, up from 12.69% in 2013. The Dayton Area Market experienced an overall net negative absorption of (21,004) square feet. The North Dayton market showed positive trends with over 60,000 square feet of positive space absorption in 2014. However, the Dayton East and South Markets remain the Dayton Area’s strongest markets with vacancy rates of 8.35% and 14.95% respectively.
The Central Business District continues to attract many entertainment venues, including restaurants and micro-breweries, as well as “pop-up” retailers. Notable deals in 2014 continued to be dominated by Austin Landing, the Whole Foods project, located in Washington Township, called Oak Creek Marketplace, and the beginning stages of the Cornerstone of Centerville North, which includes the new Costco.
All in all, Dayton Region continues to see new activity. It is expected that the market will remain stable in 2014, and there will likely be some new notable deals taking place.