DAYTON—The Greater Dayton industrial real estate market had a solid 2013, absorbing 2.26-million-square-feet during the year, with nearly 400,000-square-feet of net absorption in the fourth quarter, according to a market analysis by Cassidy Turley, a Washington, DC-based commercial real estate services provider.
“New industrial construction was the central driver of absorption in 2013, as nearly 1.4 million-square-feet was completed,” says Jarrett Hicks, a senior research analyst in Cassidy Turley’s Dayton office. “In the fourth quarter alone, 395,000-square-feet of industrial space was delivered to the market,” including freestanding buildings for Abbott Laboratories and White Castle.
The overall vacancy rate for the fourth quarter of was 15.1%, a slight drop from the 15.2% rate at the end of the third quarter. And the bulk warehouse sector was especially active in the fourth quarter with the two largest leases and the four largest sales. STAG Industrial, for example, purchased the 350,500-square-foot I-70 Commerce Center in Springfield for $9.5 million. And fixture manufacturer idX Corp. will relocate from 721 Springfield St. in Dayton to a 219,000-square-foot space in the Rex Warehouse on Needmore Rd.
And new construction should also drive the industrial market this year as well. More than 2.4-million-square-feet of space is under construction across the metropolitan area, including a 1.8-million-square-foot consumer products distribution center in the North submarket.
“With more than 2-million-square-feet under construction and steadily increasing sales and leasing activity, net absorption for 2014 in the Greater Dayton area will meet or exceed 2013 levels,” the analysis notes.