Today, there are 44,000-square-feet of space under construction near Wright-Patterson Air Force Base, with more planned, the report says.
However, Department of Government Efficiency moves are creating uncertainty and delaying some federal real estate decisions, Colliers cautioned.
“Office fundamentals reflect near-term challenges, but the region’s deep aerospace roots, ongoing reinvestment in downtown, and long-term development near WPAFB (Wright-Patterson Air Force Base) signal strength beneath the surface,” the report said.
Wright-Patterson, an anchor for Air Force research, sustainment and logistics, is home to some 35,000 military and civilian employees.
In all, the area aerospace sector supports over 103,000 jobs and contributes $19.4 billion annually to the economy, according to Colliers.
Other takeaways from the report:
- Overall office vacancy dropped to 18.5%, down from 22.3% year-over-year.
- Negative absorption continues. Second quarter net absorption totaled -37,920 square feet, with -115,899 square feet year-to-date. A key measure in real estate, a decrease in net absorption means that more commercial real estate space is becoming vacant than is being leased. Positive net absorption signals the opposite.
- Meanwhile, more than $400 million in downtown projects were completed in 2024, with $436 million underway and $3.5 billion in projected investment over five years.
The report adds, however: “Once federal budget decisions are finalized and leasing confidence returns, Dayton will be well-positioned. With space designed for the future and a region committed to innovation, the office and aerospace markets are not just weathering the moment, they are preparing for what comes next.”
Meanwhile, Dayton’s market for industrial users is approaching a “critical juncture,” another quarterly Colliers report examining that sector said.
Some of the biggest industrial deals of the recent quarter include United Alloy’s 394,000 square feet at 2050 Old Springfield Road near Dayton International Airport and a 354,000-square-foot Dayton Public Schools lease at 1516 Stanley Ave.
“Dayton is approaching a critical juncture,” Colliers said. “Class A supply is running thin, tenants are expanding, and new construction has yet to catch up. With key sites moving toward development and demand holding steady, the stage is set for a new growth cycle heading into 2026.”
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