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recent report from Colliers highlights a tightening office market in the Dayton area, driven by strong demand for industrial space. The total inventory of available space has increased to 103.98 million square feet, with new supply adding 281,482 square feet. This growth reflects the ongoing need for industrial space, particularly among key occupiers.

    Vacancy rates have declined significantly, from 5.5% in the third quarter of last year to 3.5% in the most recent quarter. Despite having 15% fewer tenants than this time last year, net absorption surged to 1.1 million square feet, a reversal from negative absorption seen in previous quarters.

    The jump in absorption is attributed to major deals with key tenants such as Sierra Nevada Corp. and ESI Electrical Contractors, who have taken substantial space. Completed expansions by Yaskawa and Innomark also contributed to the positive absorption figures.

    Notable transactions include an undisclosed buyer purchasing property on West National Road for $1.77 million and Leinster Property Solutions buying property at Gateway Circle for $1.4 million. Colliers' senior vice president, Norm Khoury, attributes the area's success to factors such as near-shoring, distribution growth, workforce strength, location, and education.

    Khoury also highlights the availability of tax-abated land in Dayton, particularly near the airport, as a major advantage for attracting manufacturing and distribution companies. With interest rates expected to remain low, Colliers predicts a strong market performance in the next quarter.