Cassidy Turley, a commercial real estate services provider in the U.S., announced today that a strong fourth quarter in the Dayton regional real estate market brought the year to a positive close. More than 181,326 square feet of space was absorbed in the fourth quarter, bringing total absorption to 224,480 square feet for the year.
“This is the third straight year the Dayton office market has seen positive absorption,” said James Flick, Director of Research for Cassidy Turley’s Cincinnati and Dayton offices. “It has helped push the vacancy rate below the six-year historical average.”
Q4 2013 Dayton Office Market Snapshot Highlights:
Quick Summary: With area businesses absorbing 181,326 square feet of previously unoccupied space in the fourth quarter of 2013, the overall vacancy rate in the Dayton office market stood at 24.79%.
Growth Areas: Submarkets that served as the strongest drivers of demand in the fourth quarter of 2013 were the South, with 93,933 square feet of positive net absorption; the Central Business District, with 83,782 square feet; and the North, with 19,720 square feet.
Asking Rents: The average asking rental rate held firm at $14.45 per square foot, hopefully indicating that most prices have stabilized as the health of the market continues to improve. However, the average Class A asking rental rate decreased by 1.1% to $18.14 per square foot. As the market continues to gain momentum, Class A rents also will stabilize.
2014 Outlook: The South submarket will continue to be a destination location in the region in 2014 and beyond, and therefore, will draw area businesses to it. Development at Austin Landing, along I-75 in Miami Township, is not slowing down. In fact, developers have changed their plans to accommodate more office space based on the velocity of deals. Gone are the 14-screen cinema and ice rink, and in is another 200,000 square feet of planned office space. The development landed a number of new office tenants of note in 2013 including: Merrill Lynch (12,000 square feet), Eubel Brady & Suttman Asset Management (9,000 square feet), and ThyssenKrupp Materials NA (6,000 square feet). And while the Central Business District experienced a solid 2013, a number of companies have committed to leaving downtown in 2014. Historically the primary beneficiary of exiting businesses is the South submarket. Examples include: Merrill Lynch, which is vacating 16,000 square feet in the Kettering Tower in favor of 12,000 square feet at Austin Landing and Thorson, Switala, Mondock & Snead LLP, which is relocating from 5,000 square feet at 130 W. Second Street to Miami Township in March 2014.
About Cassidy Turley
Cassidy Turley (cassidyturley.com) is a commercial real estate services provider with more than 3,800 professionals in more than 60 offices nationwide. With headquarters in Washington, DC, the firm completed transactions valued at $22 billion in 2012, manages approximately 400 million square feet on behalf of institutional, corporate and private clients and supports more than 23,000 domestic corporate services locations. Cassidy Turley serves owners, investors and tenants with a full spectrum of integrated commercial real estate services including capital markets, tenant representation, corporate services, project leasing, property management, project and development services and research and consulting. Cassidy Turley enhances its global service delivery outside of North America through a partnership with GVA, giving clients access to commercial real estate professionals in 65 international markets.