Cincinnati Office Market Report

Limited supply additions place downward pressure on vacancy. Contrary to the national trend, vacancy will decline by 10 basis points in Cincinnati this year. Only two other major U.S. markets — Memphis and New Haven-Fairfield County — are projected for decreasing rates year-over-year. Cincinnati’s relative resilience largely stems from a lack of new supply entering the market, directing tenants into existing spaces. Mason and Montgomery each expect sub-30,000-square-foot deliveries in 2023, while the CBD has a dearth of approved proposals slated to come online in the next three years. Leasing during the first seven months of the year was also concentrated in and around downtown, as well as in Northern Cincinnati proximate to Blue Ash. This will likely aid Cincinnati’s already tight CBD vacancy rate further, which was 11.8 percent in June.