Vacancy Rate in the Dayton Industrial Market Continues to Decline
The vacancy rate in the Dayton market continues to remain low at 11.4%. The result has been less flexibility from property owners, meaning higher lease rates and longer lease terms. Industrial users have found it increasingly difficult to find viable properties with favorable terms. Much of the remaining inventory lacks required features, is located in challenging areas or requires extensive tenant improvements.
As predicted in the last year’s survey, the decline in industrial vacancy has finally generated some speculative building, and multiple projects are in the planning stage. The projects include bulk warehouse buildings ranging in size from 250,000 SF to over 500,000 SF primarily in the North market near the airport where Procter & Gamble and Spectrum Brand are located. This location, with its access to I-70 and I-75, readily available land and in some cases tax abatement, continues to draw attention from developers new to our market. We see no reason why at least one of these projects won’t get started within the next 6-12 months. Additionally, we believe owners of existing facilities will be making improvements to their inventory and buyers of older product will be providing necessary upgrades to make their facilities more appealing to users.
If you would like more information about Dayton’s industrial market, available properties, or a copy of the complete 2017 Dayton Industrial Market Report, please contact Steve Peters, SIOR at (937) 297-3243 or Gerry Smith at (937) 297-9368.
Download 2017 Industrial Market Report