Increasing demand sets the stage for the year ahead
Steady momentum carried forward into 2022 as the Cincinnati retail market saw an increase in demand during the first quarter. Demand increased by 23% with the market recording 202.6 thousand square feet of positive net absorption. The market is set to test conditions that were last seen during the first quarter of 2021. Average asking rates increased to $14.43 from $14.29. The Northern Kentucky submarket posted the highest average asking rates within the market, at $15.70 per square foot. Additionally, the Northeast submarket experienced the most growth in terms of asking rates with an increase to $15.33 per square foot, from $15.07. With the effects of Covid-19 becoming a challenge of the past, the retail market is making a comeback. Consumers are continuing to seek more experiential dining options, extreme convenience, and favor smaller format shopping locations. Due to this retail demand is likely to increase throughout 2022 as retailers strive to meet consumer demand.
- Demand increased quarter-over-quarter with 202.6 thousand square feet of space being absorbed.
- Vacancy decreased by 60 basis points to 5.8%.
- Average asking rates continued the climb upwards topping out for the quarter at $14.43.
- There were no new supply additions for the quarter however, construction remained at 219.3 thousand square feet with 174.9 thousand square feet completing before year-end.