Overall, the office market in the Dayton region is recovering. The South market is currently the most active, with good activity at Austin Landing and the areas along St. Rt. 741 and I-675. The North market is seeing some redevelopment happening with the acquisition of two office buildings on Poe Avenue by Stratacache. The CBD continues to attract both buyers and Tenants looking to take advantage of the aggressive lease rates and acquisition prices of buildings. The result has been some significant deals happening downtown by quality companies including Midmark, Caresource, Tricom B2B, Business Furniture and Premier Health. There is also more activity downtown than there has been in several years with more restaurants considering opening a new location and multiple new housing projects in the planning stages or underway.
Currently, the East market is the softest office market in Dayton due to the recent impact of sequestration. The deals we are seeing tend to be smaller and overall activity is down compared to what we normally see in this area. However, there is hope that the area will adjust to the budget cuts and improve as defense contractors understand how the budget cuts will ultimately affect their business. There were a few good deals last year in the area but the results of these deals were new vacancies in buildings these companies abandoned. There is currently more vacancy in this market than there has been in a long time. One bright spot has been The Greene which continues to attract both office and retail user’s often new to our market.
The Dayton office submarket that will attract the most users in the future will likely be the South market. Austin Landing has proved to provide a product that has been accepted well and has plans to bring additional product on line in the near term. The North market is getting better with the recent redevelopment of some older buildings along I-75 and should continue to have existing spaces filled now that there is some new building ownership. The Central Business District is projected to continue to be strong and active, offering aggressive deals. The east market will most likely continue to be weak but should improve, especially if UAV and UAS related activity begins surfacing. Overall, we are seeing continued progress.