“In the heart of the Midwest, Dayton benefits from its location at the convergence of major north-south and east-west interstates and its proximity to Indianapolis, Cincinnati and Columbus,” the report said. “Dayton’s economy benefits from the Wright-Patterson Air Force Base and related ancillary contractors. Increased defense spending should bode well for the Dayton industrial market.”
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The report can be found here.
Since 2013, Dayton-area “industrial rents have increased by an average of 25.2 percent,” the firm said. “Dayton has seen over 10.2 million-square-feet of net absorption since 2013 and 4.5 million-square-feet of completion in that same time frame.”
Positive absorption happens when a previously vacant space became occupied by a new tenant business.
“The Dayton market has been very hot,” Matt Arnovitz, senior associate for CBRE, said in the company’s release. “Sitting on the crossroads of two of the highest traveled highway routes in the country and with great access to rail service, it is a market that is on a lot of people’s radar.”
“The industrial and logistics sector continues to generate strong momentum with the growth of e-commerce and a healthy U.S. economy, but opportunities vary depending on geography, asset type and other factors,” Jack Fraker, vice chairman and managing director of CBRE Global Industrial & Logistics, also said.
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Leading the list are seven markets that report industrial vacancy rates below or only slightly above the national average (4.3 percent) and aggregate rent growth of 6.1 percent in the past year: Las Vegas, Salt Lake City, Milwaukee, Reno, St. Louis, El Paso and Detroit.
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The other seven markets have more new leasing opportunities due to construction completions, and they generated an average rent increase of 5.6 percent: Greenville-Spartanburg, S.C.; Dayton; San Antonio; Savannah, Ga.; Central Valley, Calif.; Northeastern Pennsylvania; and Phoenix.
CBRE ranked the markets after polling its industrial and logistics capital markets teams, the company said.
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