An in-depth look at the Cincinnati office market. Analysis includes leasing, sales, construction and employment.

1. © 2018 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Market uncertainty in light of COVID-19 pandemic
Insight
Summer 2020
Dayton Office Insight
The Dayton office market started the year with moderate activity both in
sales and leasing. Like years past, the South and East submarkets continue
to draw most of the activity given their proximity to the Wright Patterson
Airforce Base. The largest lease thus far in the year is Wilmer Hale for
48,887 square feet at 3050 Newmark Dr, followed by Kettering Health
Network at 2000 E Dorothy Ln for 25,459 square feet, and DCS Corp for
23,298 square feet at 3745 Pentagon Blvd. In addition to moderate leasing
activity, sales activity has followed suit with the largest sale of the quarter
being the four-building portfolio at Miami Valley Research Park that was
purchased by ICP from PNC Financial Services for $5.2 million or $22.67-
per-square-foot.
While sales and leasing activity remains stable, construction in the Dayton
office market is quiet. Speculative construction has been very minimal over
the last several years with most construction being driven by build-to-suit
projects. The most notable projects include the new CareSource
headquarters and Radiance Technologies headquarters that both
delivered in 2019.
Outlook
While sales and leasing activity fared moderately in the beginning of 2020,
like most markets across the United States, activity in Dayton has stalled
due to the COVID-19 pandemic. With many office users re-evaluating their
spaces needs, leasing activity has slowed into the second and third
quarters. This is likely to remain the case throughout the end of 2020. As we
head further into the second half of the year, we may see companies
beginning to give back space as they evaluate giving employees more
flexibility for remote work in the future.
Top trends:
• The South and East submarkets continue to drive activity in the
market given their proximity to the Wright-Patterson Air Force Base.
• Construction within the Dayton market remains minimal. The most
notable deliveries in the new CareSource and Radiance Technologies
build-to-suits.
• Vacancy and rental rates have remained fairly stable over the last
several years.
Fundamentals Forecast
Total inventory 12,554,373 s.f. ▶
Under construction 0 s.f. ▶
Total vacancy 18.8% ▼
Average asking rent (gross) $15.15 p.s.f. ▲
Concessions Stable ▶
-50,000
50,000
150,000
250,000
2017 2018 2019 2020
Supply and demand (s.f.)
Net absorption
17.7%
17.1%
16.7%
18.8%
2017 2018 2019 2020
Total vacancy
$0.00
$5.00
$10.00
$15.00
$20.00
2017 2018 2019 2020
Average asking rents ($/s.f.) Class A
Class B
The health, policy, economic and financialdisruption stemming from the COVID-19 pandemic continues to
create a fluid and evolving environment for the office market. Although data from Q2 is providing greater
clarity about conditions and the short-term real estate outlook, there remains significant uncertainty
surrounding market dynamics and long-term trajectories and, as a result, we will continue to monitor
fundamentalsclosely as the situation unfolds. Please feel free to contact us if we can assist.
© 2020 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.

2. © 2018 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Summer 2020
Dayton Office Market
Statistics
Methodology: JLL tracks office buildings ≥20,000 square feet. Government, medical and owner-occupied buildings are excluded.
Class Inventory (s.f.) Total Availability (s.f.) Total Availability (%)
Average direct
asking rent ($ p.s.f.)
CBD Totals 5,209,080 529,254 24.0% $14.41
East Totals 2,376,014 251,887 10.6% $18.89
North Totals 801,769 169,350 21.1% $14.31
South Totals 4,051,360 691,883 17.1% $15.70
Upper Valley Totals 74,138 13,403 18.1% $18.00
West Totals 116,150 - 0.0% $0.00
Suburbs Totals 7,345,293 1,113,120 15.2% $16.15
Dayton Totals 12,554,373 2,363,467 18.8% $15.15
CBD A 1,877,943 529,254 28.2% $16.84
East A 1,226,952 136,584 11.1% $23.94
North A 141,150 22,957 16.3% $17.50
Suburbs A 2,869,170 293,178 10.2% $20.76
Dayton A 4,747,113 822,432 17.3% $18.02
CBD B 3,331,137 721,093 21.6% $12.99
East B 1,149,062 115,303 10.0% $16.44
North B 660,619 146,393 22.2% $13.64
South B 2,550,292 558,246 21.9% $14.86
Upper Valley B 74,138 13,403 18.1% $18.00
West B 116,150 - 0.0% $0.00
Suburbs B 4,476,123 819,942 18.3% $14.88
Dayton B 7,807,260 1,541,035 19.7% $13.89
© 2020 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.

3. © 2018 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Summer 2020
Dayton Office Market
Market activity
3
Sale
Lease
1
2
6
4
Address: 2661 Commons Blvd
Lease Size: 14,900
Move Date: Q2 2020
Tenant: DeciBel Research
4
5
Address: 424 E First St
Lease Size: 5,500
Move Date: Q2 2020
Tenant: Brackett Builders Inc
1
Address: 1 S Main St
Square Feet: 343,236
Price: $7,444,947
Price/SF: $21.69
Buyer: R.L.R Investments, LLC
Seller: CWCapital Asset
Management, LLC
This dashboard analyzes a partial list of office market activity in the Dayton market YTD
5
2
Address: 3050 Newmark Dr
Lease Size: 48,887
Move Date: Q1 2020
Tenant: Wilmer Hale
3
Address: 3745 Pentagon Blvd
Lease Size: 23,298
Move Date: Q1 2020
Tenant: DCS Corp
6
Building Park: Miami Valley
Research Park
Square Feet: 229,366
Price: $2,224,363
Price/SF: $22.24
Buyer: ICP, LLC
Seller: PNC Financial Services
Group, Inc.
© 2020 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.

4. © 2018 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Andrew Batson
Vice President, Director of Research
+1 216 937 4374
andrew.batson@am.jll.com
Employment
Abby Armbruster
Senior Research Analyst
+1 513 252 2148
abby.armbruster@am.jll.com
Contact:
11.7%U.S. unemployment
-9.5%U.S. 12-month job growth
12.7%Dayton unemployment
-11.2%Dayton 12-month job growth
13.7%Ohio unemployment
-13.6%Ohio 12-month job growth
Summer 2020
Dayton Office Market
-18.0%
-15.0%
-12.0%
-9.0%
-6.0%
-3.0%
0.0%
3.0%
201
3
201
4
201
5
201
6
201
7
201
8
201
9
Dayton U.S.
Job growth*
Historical employment Office employment*
* Represents 12-month change in employment. All charts represent the latest economic data available from the Bureau of Labor Statistics as of May 2020.
© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
0%
4%
8%
12%
16%
100,000
200,000
300,000
400,000
500,000
2013 2014 2015 2016 2017 2018 2019 2020
Employment Unemployment
-5.0
-3.0
-1.0
1.0
3.0
5.0
7.0
2014 2015 2016 2017 2018 2019 2020
Professional & Business Services Information
Government Financial Activities
© 2020 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.