However, that drop in vacancies was enabled by some properties being taken off the market, the report noted. Several office buildings were purchased or taken off the market for renovation.
“These changes have helped reduce the overall available inventory, contributing to the improved vacancy rate and signaling a tighter market moving forward,” Colliers said.
Meanwhile in the third quarter of the year, there was evidence of negative absorption in the market, but at a slower rate. Absorption remained negative at -6,141 square feet, but marked an improvement from previous years, Colliers said.
In these reports, net absorption measures changes 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.
And the report sees evidence of rising lease rates, with overall asking lease rates increasing to $18.63 per square foot, and Class A rates reaching $20.90.
Credit: Tom Gilliam
Credit: Tom Gilliam
“The Dayton office market showed signs of improvement in Q3 2024, with vacancy rates dropping significantly and lease rates rising across all office classes,” the report said. “Although absorption remained negative, the market is stabilizing, aided by a combination of property transactions and renovations that contributed to the vacancy reduction. Lease rates were updated after thorough research, reflecting the upward shift in pricing across the market.”
Among the bigger deals of the quarter: AcuteCare Health System purchased a property at 200 Daruma Parkway for $2.1 million in Moraine, and Walz Capital LLC purchased 900 E. Alex-Bell Road in Centerville for just over $2 million.
Business consulting services firm Infinite Management Solutions reported a significant new lease at 10 N. Ludlow St., off Courthouse Plaza, with 5,410 square feet.
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