Spec Office Buildings Planned for Cincy Suburbs

CINCINNATI—Market fundamentals for the Greater Cincinnati office market continued to be strong during the first quarter of 2016, according to CBRE's new Office MarketView report. Tenant demand for class A product accounted for much of the 144,861 square feet of net absorption in the metro area. ,

Most impressive has been the progress at the region's speculative developments such as the Kenwood Collection in suburban Kenwood, and Rookwood Exchange, which were both completed in late 2015. Tenants have already leased nearly 90% of the properties. In the first quarter, Quotient Technology Inc., formerly known as Coupons.com, leased 32,000 square feet at the Kenwood Collection, bringing that complex to a 91% occupancy rate. The lease up has even encouraged the developer to begin converting some of the retail space into offices.   

“The success of the Kenwood Collection and Rookwood Exchange show that companies are willing to pay higher rents for premium space if it will provide not only an attractive client experience but also an environment that will help attract and retain quality employees,” says John Eckert, first vice president at CBRE's Cincinnati office.

Furthermore, other developers have gotten interested in speculative projects. Currently, the only speculative building under construction is VanTrust Real Estate's 140,000 square foot Landings Park in suburban Blue Ash. However, Kubicki Real Estate Partners has unveiled plans for the 150,000 square foot NorthPointe in West Chester and Miller-Valentine/Jeffery R. Anderson want to build an 80,000 square foot mixed-use development in Silverton.

“Development in the CBD is mainly the repurposing of functionally obsolete class B/C office buildings into apartments with ground-level retail and the construction of new apartment buildings,” Scott Yards, first vice president of CBRE, tells GlobeSt.com. “As more office space is taken off the market, there should be a need for new class A office buildings in the future. The re-purposing of class B/C office product is expected to continue. 

Yards adds that the Over-the-Rhine neighborhood is also beginning to see new development. But in this historic district builders have mostly concentrated on rehabilitation. Grandin Properties, for example, began renovating the 88,000 square foot Strietmann Building located at 221 W. 12^th St. in the first quarter.

CINCINNATI—Market fundamentals for the Greater Cincinnati office market continued to be strong during the first quarter of 2016, according to CBRE's new Office MarketView report. Tenant demand for class A product accounted for much of the 144,861 square feet of net absorption in the metro area. ,

Most impressive has been the progress at the region's speculative developments such as the Kenwood Collection in suburban Kenwood, and Rookwood Exchange, which were both completed in late 2015. Tenants have already leased nearly 90% of the properties. In the first quarter, Quotient Technology Inc., formerly known as Coupons.com, leased 32,000 square feet at the Kenwood Collection, bringing that complex to a 91% occupancy rate. The lease up has even encouraged the developer to begin converting some of the retail space into offices.   

“The success of the Kenwood Collection and Rookwood Exchange show that companies are willing to pay higher rents for premium space if it will provide not only an attractive client experience but also an environment that will help attract and retain quality employees,” says John Eckert, first vice president at CBRE's Cincinnati office.

Furthermore, other developers have gotten interested in speculative projects. Currently, the only speculative building under construction is VanTrust Real Estate's 140,000 square foot Landings Park in suburban Blue Ash. However, Kubicki Real Estate Partners has unveiled plans for the 150,000 square foot NorthPointe in West Chester and Miller-Valentine/Jeffery R. Anderson want to build an 80,000 square foot mixed-use development in Silverton.

“Development in the CBD is mainly the repurposing of functionally obsolete class B/C office buildings into apartments with ground-level retail and the construction of new apartment buildings,” Scott Yards, first vice president of CBRE, tells GlobeSt.com. “As more office space is taken off the market, there should be a need for new class A office buildings in the future. The re-purposing of class B/C office product is expected to continue. 

Yards adds that the Over-the-Rhine neighborhood is also beginning to see new development. But in this historic district builders have mostly concentrated on rehabilitation. Grandin Properties, for example, began renovating the 88,000 square foot Strietmann Building located at 221 W. 12^th St. in the first quarter.