Report: Dayton-area office market sees vacancies rise in third quarter

Thomas Gnau, Dayton Daily News, Ohio
·2 min read

Oct. 25—The Dayton office market is dealing with higher vacancies in the past three months, a new Colliers real estate report says.

The Dayton market experienced negative net absorption of 44,200 square feet in the third quarter, which caused the office vacancy rate to rise 30 basis points from the second quarter to 23.3%, Colliers said in a new report.

Net absorption measures change in occupied space, taking into consideration vacated space and newly built space.

Higher net absorption represents more space being leased than vacated. Negative absorption means more space is vacated.

No new office supply was delivered this quarter, About 60,000 square feet remain under construction, Colliers said.

The average direct asking rate rose to $17.35 which was mainly caused by an increase in Class B and C asking rates, the report said.

But Colliers noted strength for offices around Wright-Patterson Air Force Base, reminding readers of recent announcements from Joby Aviation, UES Inc. and HII.

Another recent big Wright-Pat-related contract win: Mile Two LLC, the University of Dayton Research Institute, Applied Research Associates; ARCTOS, Vana Solutions and BTAS Inc. are ready to compete for work under a new wide-ranging research contract from the Air Force Life Cycle Management Center at Wright-Patterson with a value of up to $900 million, Colliers also noted.

"As Wright-Patterson Air Force Base continues to evolve as a dynamic epicenter of aviation and defense activities, its impact on the local office real estate market remains undeniable. These recent developments underscore the base's enduring legacy and its pivotal role in shaping the future of aerospace and technology industries," Colliers said.

Among the notable deals of the third quarter: Georgia Tech Research Institute renewed its lease on 21,309 square feet at the Wright Executive Center, 2970 Executive Blvd., Fairborn.

And 62 Remick Blvd. in Springboro sold for $1.85 million in mid-August. Cory B. Sellers Real Estate Holdings Springboro LLC is the owner there, according to the Warren County auditor's office.