Industrial vacancies reached 24.8 percent this year, compared to 23.5 percent a year ago, according to a survey by Gem Real Estate Group. The information was collected in the second quarter of this year, the research and brokerage firm said.
One problem the region faces, observers said, is it has too many buildings with locations, ceiling heights or other features that make them unattractive to today’s companies.
“They’re old. They’re tired,” said Mark Fornes, president of Mark Fornes Realty. “The power may not be good enough. The location may not be accessible to highways.”
Some markets within the Dayton area saw sharp drops in vacancies, while others saw increases.
The region’s south market experienced the largest increase of vacant space, adding about 515,000 square feet of empty space, according to the survey. The south market, as defined in the survey, includes Centerville, Franklin, Kettering, Miamisburg, Moraine, Miami Twp., Springboro and portions of Dayton.
David Dickerson, president of Gem Real Estate, attributes the additional empty space in the south to continued shakeout from the closure of the General Motors assembly plant in Moraine as some suppliers have shut their doors, too.
“I would anticipate that leveling off as we begin to turn the corner,” he said.
Another trend Dickerson sees throughout the region is companies buying their own buildings rather than leasing. Low interest rates and cheaper prices for industrial properties are driving this trend, he said.
Fornes, whose company is developing Byers Business Park with Construction Managers of Ohio, said adding new industrial space will help safeguard the local economy and keep companies in the Dayton area.
“It’s a no-brainer. The successful companies want newer, better locations,” he said. “You can’t stuff them into obsolete buildings. As good as that sounds, it never usually works, unfortunately.”
Skip Schafer, owner of Skip Schafer Commercial Realty, said he sees an appetite for smaller warehouse spaces from growing companies.
Other markets in the Dayton area saw available industrial space fill up.
The region’s east market — Beavercreek, Xenia and parts of Dayton — filled 156,260 additional square feet during the period, the survey found. The north market filled 110,600 square feet, giving it a vacancy rate of 21.5 percent, compared with a vacancy rate of 23.7 percent a year ago. The market includes Englewood, Huber Heights, Vandalia and parts of Dayton.
The survey found the western Dayton market’s vacancy rate rose slightly to 26.95 percent, compared with 26.5 percent a year earlier. The western market includes properties in Dayton, Brookville and Trotwood.
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