Setting the Tone for 2022
Greater Cincinnati retail activity returned to strong occupancy gains to close out 2021 after a brief pause in the third quarter. Net absorption totaled 160,668 square feet, bringing the market’s absorption for the year to 524,106 square feet. An overwhelming majority of retail submarkets posted positive occupancy gains for 2021. Activity in northwest trade areas like Colerain and Springdale saw the largest growth throughout the year as businesses target growing strip/convenience centers and abandon high-vacancy centers with little hope of a turnaround. Overall market rents are reflecting the positive momentum in retail demand, averaging $14.29 per square foot, and remain on an upward trajectory with spaces in regional and community centers demanding the highest rates.
- The Greater Cincinnati retail market posted positive net absorption of 160,668 square feet during the fourth quarter, bringing the year-end total to 524,106 square feet.
- Vacancy dropped 20 basis points from the previous quarter to 6.4%.
- Construction activity, totaling 195,059 square feet, is concentrated primarily on ground-level retail serving larger mixed-use developments.
- Rental rates have steadily risen, with 4% growth in the past two years, driven by demand for quality retail space within high-traffic convenience centers and mixed-use developments.