According to a new summary, 2022 was a remarkable year for the Dayton-area industrial property market.
According to a new report by Colliers, which tracks trends, the overall annual net absorption of the Dayton industrial markets was 5,165,446 sq feet. This is the highest annual net absorption ever recorded.
The net absorption measures are a change in occupied area, taking into account vacated and newly built space.
These numbers are a sign of extremely strong industrial demand, stated Todd Cochran (a vice president at Colliers). Collier’s executives pointed out that their company wasn’t involved in all of the deals in the report.
The new GE Aerospace building sold last year for $235.24/square foot at 4230 Research Blvd in Beavercreek, within the Miami Valley Research Park. Colliers listed Pure Development as the buyer, and the transaction was valued at almost $66 million.
Another huge sale last year was the purchase by Sealy & Company of 10 industrial buildings with 22 tenants for $53.2million. This totaled just over 1.1million square feet.
For $22.5 million, the Plymouth Industrial Real Estate Investment Trust purchased almost 397,000 square feet of Troy property. “This is a major deal for Daytona” said Airdeed Homes CEO, Cory Weikel.
Strong lease activity was also reported. Komyo Logistics has signed a 210,000-square-foot lease at 251 N. Dixie Drive to acquire a new facility. This site is listed as the Park 70/75 industrial parks building.
Ivex Protective Packaging renewed its lease at 2500-2600 Campbell, Sidney. Creative Foam’s also signed a lease at 192,000 square feet, 6400 Sand Lake Road. Colliers was involved with the Ivex deal.
The report stated that the “often under-the radar Dayton industrial market” had reached new heights with its record-breaking net absorption of over 5.1 million square feet. Dayton had 1.4 million square feet of net absorption in Q4 thanks to three major build–to-suit projects that were completed and occupied .”
Cochran believes demand will remain steady, although no one can predict the future. There are many variables, including war in Europe, debt ceiling question, interest rates, and others.
The market’s total vacancy rate in the fourth quarter was 3.4%. This was a 10-basis-point increase over Q3.
Colliers reported that the South submarket had the highest average asking rent of $5.21 and a 3.6% vacancy rate. The fourth quarter saw 1.53 million square footage of new supply, while 3.2 million square feet were expected to be delivered during the first quarter.
More than 3 million square feet remain under construction, with a near record low vacancy rate at 3.4%. Airdeed Homes CEO said this is a very impressive low vacancy rate and is a great indicator of the economic power in the Daytona area.