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Market Report

Cincinnati Office Market Report

2Q 2023

Vacancy Will Remain Elevated Through 2023,
but Bright Spots Allow for Occupancy Gains

Demand for downtown-proximate space aligns with supply. Contrasting national trends, Cincinnati maintained a significantly lower vacancy rate in the CBD than in suburban properties, likely aided by the city’s commuter-friendly nature and downtown-adjacent areas. The urban core is also expecting few deliveries this year, which could maintain the balance between supply and demand. In addition, several suburban areas have remained bright spots in an otherwise challenged segment. Butler County has the lowest vacancy rate among the metro’s submarkets with more than 1 million square feet of space at 10.9 percent, paired with one of the lowest average asking rents in the metro. The area also received the largest lease signed so far this year as over 270,000 square feet was committed to in Fairfield. Conversely, the Northern Cincinnati Area, where rents are above the market mean, may continue to face headwinds as budget-conscious firms prefer lower-cost areas outside of the CBD. 
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