The Dayton industrial market continues to make significant gains. Over the past year, the vacancy rate dropped to 13.96%, a record 5.43% decrease from the previous year. The industrial market has not reached rates this low since the early 2000s.
Some of the positive movement in the market can be attributed to Procter & Gamble’s new 1.8 million-square-foot distribution facility in Union, the largest development project we’ve seen in the last decade. However, it is the combinations of all the smaller transactions of around 50,000-square-feet or less that led to the majority of positive absorption in the region’s industrial sector. This increase in activity indicates that the overall health of the market has improved greatly.
Now that quality space is limited, the Dayton industrial market is getting much tighter. Sale prices are continuing to rise and landlords are requiring longer lease terms at higher rates. The continued increase in construction pricing is further fueling the competition among tenants/buyers to find quality space at a reasonable rate. This increasing demand against an insufficient supply of class “A” industrial space will spur more build-to-suit projects in the region.
Some of the more notable transactions include:
• Konecranes – 41,000 SF
• DMAX – 65,000 SF
• Innovative Plastic Molders – 66,100 SF