Economic Overview
As of Q3 2026, the unemployment rate in Greater Cincinnati decreased significantly on a year-over-year (YOY) basis to 3.5%, which was lower than the national rate of 4.2%. In J.D. Power’s 2026 airport customer satisfaction study, Cincinnati/Northern Kentucky International Airport ranked seventh among North American airports in the medium-sized category (4.5 million to 9.9 million annual passengers), ahead of peers in Pittsburgh, Columbus and Cleveland.
Supply and Demand
Overall vacancy in Greater Cincinnati peaked at 6.3% in mid-2025 and has since fallen steadily to 4.6% in Q3 2026, its lowest level since 2023, a decline of approximately 170 basis points (bps). As overall vacancy fell, Modern Bulk vacancy also decreased on an annual basis from 14.6% to 7.9% in Q3 2026. Nearly 2.6 million square feet (msf) of construction projects were completed this year through Q3 2026, while another 2.4 msf of ongoing new construction remained in-process.
After three years of minimal net absorption, 2026 has rebounded sharply, with 7.2 msf absorbed year-to-date (YTD). At the current pace, 2026 could be the second-highest year of net absorption on record for the market. Unlike prior quarters, Q3 2026 net absorption (1.6 msf) was not driven by new construction deliveries, but by modern bulk leasing. The three most notable leases to impact net absorption were all in the Northern Kentucky submarket. Novolex leased the entire 897,000-sf Logistics Park 75 – Building 1 in Richwood. Nearby, Deco Marche moved into 409,000 sf of first-generation space at Corridor 75 Logistics Park on Dixie Highway. Foodservice provider Lyons Magnus took a 303,000-sf portion of Richwood Commerce Center II.
New leasing activity for YTD 2026 approached post-pandemic record levels at 8.7 msf, including 2.5 msf of leasing in Q3 2026. Leasing activity is an indicator of future quarterly net absorption.
Pricing
Across all categories, the overall average net asking rate was $6.66 per square foot (psf) in Q3 2026; an increase of 5.9% on a YOY basis. The asking rate has been above $6.25 psf in nine of the past ten quarters.
