Payless ShoeSource left its distribution center in Brookville this year, imposing an outsized impact on Dayton’s industrial real estate market. STAFF

Sleep Outfitters lease new Dayton space, as overall industrial vacancy rises

Payless exodus has outsized market impact

Sleep Outfitters has leased 14,400 square feet at the Arena Business Center for warehouse uses.

Mark Dlott and Wade Elliott, of Apex Commercial Group, represented the landlord in the transaction, while David Lotterer, of industrial and commercial real estate firm JLL, represented Sleep Outfitters.

The deal at 2300-2322 South Edwin C. Moses Boulevard, in Dayton, was among the biggest industrial lease deals of the third quarter of 2019, according to a new report from Colliers International.

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Other notable lease deals include Wurth Electronics ICS leasing 40,000 square feet at Austin Business Park III in Miamisburg.

The biggest industrial sale of the third quarter was a nearly 43,000-square-foot warehouse at 4500 Lyons Road for $2.3 million, according to the Colliers report.

Overall, however, the quarter was not a good one for the Dayton industrial market. The market posted a loss in occupancy of 306,581 square feet during the third quarter, resulting in an increase in the overall market vacancy rate to 7.3 percent.

The chief blame for the loss is attributable to Payless Shoes vacating 601,500 square feet in the West submarket in Brookville, Colliers noted.

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Setting the Payless exodus aside, however, Colliers said the market actually recorded positive activity, largely made up of mid-sized transactions ranging from 20,000 square feet to 70,000 square feet.

The outlook is good, Colliers predicted. The Dayton industrial market can expect to finish the year with additional leasing and net absorption between 650,000 and 750,000 square feet, pushing the total gain for the year close to 1.5 million square feet, according to its report.

“Only two small construction projects were completed during the quarter and 1 million square feet of new inventory is in the pipeline,” Colliers also said.

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