Cincinnati Office Market Report

Class B/C buildings capture demand rebound. After pandemic losses, the fourth quarter of 2021 reported positive net absorption of nearly 200,000 square feet. Class B/C office properties were the overwhelming target of firms looking for space. This momentum continued into the first quarter as net absorption remained positive, despite the challenges imposed by the omicron variant. Interest in these lower-tier buildings has helped offset the falling demand for Class A layouts. Furthermore, all Class B space under construction is fully leased, contrasting conditions in the upper-tier segment. Although speculative Class A deliveries present some near-term headwinds, overall leasing velocity in April and May indicate tenant demand is rising as employers revive in-person operations.