When property options become limited to tenants and buyers, “it almost forces them to expand or build something new,” according to Dickerson. Some areas have seen more significant growth — specifically alongside the I-75 corridor.
According to the Miller-Valentine report, East Dayton had a 7.45 percent vacancy rate and North Dayton was at 10.18 percent. The South Dayton market showed the greatest improvement in 2016, absorbing over 300,000 square feet of space.
Ric Moody, broker and auctioneer for Dayton Commercial Realty, said he gets many calls from buyers and leasers who are interested in finding industrial space.
“The economy has truly come back,” Moody said. “We’ve seen such a resurgence of small business, and those are the companies that are expanding here. They’ll move from five to eight employees, or from 10 to 20. Those are the people who are wanting warehouse or industrial space.”
Dickerson said sales prices are rising and some landlords are requiring longer, more expensive leases. The continued increase in construction pricing is fueling the competition with tenants and buyers.
“I think we will continue to see that market expansion with the increase in competition,” he said.