Defense drives bustling office market east of Dayton

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The market’s overall market vacancy rate, however, remained unchanged at 21.3 percent, which Collier’s attributed to the addition of two new buildings in Dayton’s “central business district” — CareSource’s 250,000-square-foot building at 122 N Jefferson St. and the renovation of an historic building at 607 E 3rd St., the former Lotz Paper Co. building, which added 35,000 square feet of space to the downtown area. (However, 29,000 square feet of that has already been leased.)

Dayton’s East submarket enjoyed a positive net absorption of 17,302 square feet and a year-to-date total of 94,016 square feet, Collier’s said.

Vacancy has fallen since the beginning of the year, with CACI Inc. leasing 18,567 square feet at Wright Executive Center and Serco leasing 17,000 square feet at The Acropolis at Fairfield Commons.

Colliers also noted that in the South submarket, Teradata completed its move to San Diego, vacating its former headquarters at 10000 Innovation Way in Austin Landing. This move out contributed to the quarter’s negative net absorption of 65,043 square feet, increasing the vacancy rate from 17.2 percent to 18.9 percent, the report says.

New speculative space to the market will be the result of offices under construction that have a significant pre-leasing commitment, such as Radiance Technologies deal for 36,000 square feet of a 53,000-square-foot building at 3715 Pentagon Blvd. or Marsh & McLennan’s lease for most of the 27,000-square-foot Water Street District building downtown, Collier’s also said.

The Dayton Daily News has previously reported that Marsh and McLennan is moving from 409 Monument Ave. in 2020 to a new Water Street District building.

The conversion of the 80,000-square-foot Dayton Motor Car Building will also add 50,000 square feet of office space to the downtown inventory, Colliers said.