Cincinnati's Industrial Market
Roars Back — Office Stabilizes
A look at how Greater Cincinnati and Northern Kentucky commercial real estate performed in the first quarter of 2026 — with data from Cushman & Wakefield and JLL.
I wanted to share a quick look at how the Greater Cincinnati commercial real estate market performed in the first quarter of 2026. Industrial demand hit a multi-year high, investment capital is flowing back into the market, and the office sector is showing early signs of stabilization after years of rightsizing.
The data below is drawn from Cushman & Wakefield's Q1 2026 MarketBeat reports and JLL's Q1 2026 Cincinnati Insights — two of the most comprehensive market tracking sources in the region. Here's what it means for owners, tenants, and investors in our market.
Sources
Cushman & Wakefield — Cincinnati MarketBeat Office Q1 2026
Cushman & Wakefield — Cincinnati MarketBeat Industrial Q1 2026
JLL — Cincinnati Office Insights Q1 2026
JLL — Cincinnati Industrial Insights Q1 2026
Industrial Market
Demand Hits Multi-Year High — Vacancy Compresses Below 6%
2.7M SF
Net Absorption
Q1 2026 — Multi-Year High
5.4%
Overall Vacancy
Down from 5.6% in Q4 2025
$6.35
Avg Asking Rent PSF
5th consecutive quarter above $6.25
2.46M SF
Under Construction
86.6% Pre-Leased
Cincinnati's industrial market opened 2026 with its strongest quarterly absorption in years. Nearly 2.7 million square feet of net absorption drove overall vacancy down to 5.4%, compressing Class A Modern Bulk vacancy from 13.3% to 11.0% year-over-year. The headline transaction was Walmart's $111.4 million purchase and occupancy of the 1.18-million-SF C5 Encore Logistics Center in Monroe/Middletown — a Class A facility that had sat vacant since its 2023 completion.
3PL and logistics operators drove the bulk of occupancy gains. DB Schenker moved into 581,000 SF at Park 536 Building 2 in Florence/Richwood, and STORD occupied 525,000 SF near CVG. The development pipeline of 2.46 million SF remains 86.6% pre-leased, leaving just one 305,000-SF speculative project uncommitted near CVG Airport. Asking rents held at $6.35 PSF — above $6.25 for five consecutive quarters.
Office Market
Vacancy Holds Steady — Suburban Submarkets Show Positive Gains
25.6%
Overall Vacancy
Virtually unchanged YOY
$20.81
Avg Asking Rent PSF
All classes — slight YOY increase
$22.90
Class A Asking Rent
PSF — holding firm
196K SF
Q1 Leasing Activity
34% lower YOY — watch for recovery
The Greater Cincinnati office market entered 2026 in a holding pattern. Overall vacancy was essentially flat at 25.6% — virtually unchanged from both the prior quarter and prior year. Net absorption was nearly zero at negative 13 SF for the quarter, as multiple Class A lease commencements offset the impact of large new vacancies. Taft Law vacated 107,000 SF at 425 Walnut Street for a smaller footprint at the Great American Tower, while Paycor took occupancy of its new 44,000-SF CBD headquarters on West 5th Street.
Suburban submarkets provided a bright spot. Blue Ash posted over 52,000 SF of positive absorption, and in Northern Kentucky, Carlisle & Bray relocated its headquarters to Ovation, pushing that building past 70% occupancy. Investment activity favored owner-occupiers and value-add plays — TriHealth's $35.3 million acquisition of its Kenwood medical office building was the quarter's largest sale. Asking rents held firm at $20.81 PSF overall and $22.90 PSF for Class A.
Notable Transactions
Deals That Defined Q1 2026
Walmart — C5 Encore Logistics Center #1
1.18M SF · $111.4M Sale · Monroe/Middletown
DB Schenker — Park 536 Building 2
581,000 SF · Move-In · Florence, KY
Deco Marché — 13015 Dixie Hwy
328,046 SF · New Lease · Northern Kentucky
TriHealth — Kenwood Medical Office
$35.3M Acquisition · Owner-Occupier
8790 Governors Hill Dr — ManTej Realty Ltd.
59,651 SF · $1.3M Sale · Blue Ash
Taft Law — Great American Tower, CBD
88,000 SF · Relocation / Downsizing
ElmTree Funds — C5 Encore Building 3
538,525 SF · $61.1M Sale · Northwest
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