T
he Dayton-area office market is showing signs of recovery, albeit slowly. Office vacancies decreased to 18.1% from 21.4% last quarter, according to a Colliers real estate report, indicating market stabilization. However, this drop was partly due to some properties being removed from the market for renovation or purchase.

    The report notes that several office buildings were taken off the market, reducing available inventory and contributing to the improved vacancy rate. This signals a tighter market moving forward. In the third quarter of 2024, net absorption remained negative at -6,141 square feet but showed improvement compared to previous years.

    Lease rates are also on the rise, with overall asking lease rates increasing to $18.63 per square foot and Class A rates reaching $20.90. The report attributes this growth to market stabilization, aided by property transactions and renovations that reduced vacancy rates. Notable deals in the quarter include AcuteCare Health System's purchase of a Moraine property for $2.1 million and Walz Capital LLC's acquisition of a Centerville property for over $2 million.

    Business consulting services firm Infinite Management Solutions also reported a significant new lease at 10 N. Ludlow St., occupying 5,410 square feet.