Dayton Retail Market Remains Stable
The Dayton retail market has recovered from the large loss recorded in early 2020 and the subsequent lack of market activity throughout the COVID-19 pandemic. Overall vacancy fell by 60 bps this quarter, driven by an occupancy gain totaling 189,551 square feet. The lack of new construction has also contributed to the fall in vacancy as retailers seeking space have only existing buildings from which to choose. Rental rates have also recovered, rising 2%, year-over-year, to $9.55 per square foot led by the community center sector, which posted a 4.9% annual gain to $13.50 per square foot.
- The Dayton retail market recorded positive net absorption totaling 189,551 square feet during the third quarter of 2021.
- Overall market vacancy fell 60 bps from last quarter, and 90 bps, year-over-year, and now equals 9.9%.
- Construction activity is limited to a few small projects with very little scheduled for ground-breaking in the near-term.
- After a period of quarterly declines, asking rental rates have begun to recover, increasing by 2% over the past 12 months to an average of $9.55 per square foot.