March 18, 2014 / By Dave Dickerson, President/Partner

Dayton Office Market Still Recovering

According to our 2013 Office Market Survey, the Dayton office market remained in the recovery phase of the real estate market cycle throughout 2013.  The overall vacancy rate for the office market dropped to 25.66%.  Positive absorption trends were observed in both the South Dayton and CBD markets while the North Dayton market remained unchanged in 2013.

The greatest change for the 2013 survey resulted in the East Dayton market, which continued to struggle from the shake out of defense cuts and consolidations in the defense industry that has been trending since 2010. Our researchers surveyed a total of 76 office buildings, totaling 3,665,821 square feet of space, in the East market. Of this space, 1,039,343 square feet, or 28.35%, was reported to be vacant. The vacancy rate in the East market was up over the previous year, with net absorption totaling negative (208,777) square feet. In our opinion, the increase in vacancy could present some unique opportunities for companies in the East market. There is class “A” and first generation space available in ideal locations allowing companies to move closer to the base, to I-675, to amenities, or get a better lease rate.

The Miller-Valentine Group Realty Services team welcomes to the East market, General Atomics, a new company to the Dayton Market specializing in Unmanned Aircraft Systems (UAS), tactical reconnaissance radars, and surveillance systems. Miller-Valentine Group Realty Services Senior Vice President Steve Peters represented the landlord in this transaction.