Dayton Industrial Market Continues to Improve
The Dayton industrial market continues to make significant gains. Over the past year, the vacancy rate dropped to 12.22% from a reported figure of 13.96% in 2015. The industrial market has not reached rates this low since the early 2000s.
The Upper Valley continues to lead the Dayton submarkets with a 4.92% vacancy rate, followed by East Dayton at 7.45% and North Dayton at 10.18%. The South Dayton market showed the greatest % improvement in 2016, absorbing over 300,000 sqft. of space.
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.