Cincinnati Retail Market Report

Retailers flock to the urban core. In the yearlong span ended in June, the city of Cincinnati recorded a 970-basis-point drop in multi-tenant vacancy to 3.7 percent in the second quarter. This decrease was aided by elevated retailer demand for the limited multi-tenant stock in the area, as single-tenant vacancy sunk to 1.8 percent, following resilience to pandemic disruptions. This exhibits high tenant demand in the submarket across the retail spectrum. Construction has also been sparse here during the last 10 years, and developments are expected to remain low in the next two years. Limited deliveries and elevated leasing activity in the urban core facilitated strong rent growth, as the average asking rent in the locale reached $16.76 per square foot in June. Renewed interest in the CBD comes as Cincinnati reports one of the tightest vacancy rates for downtown apartments at 3.2 percent. An expanding renter pool and employees returning to offices more days of the week will lift downtown foot traffic, providing a tailwind for retailers located here.