1. Q1 2012 | industrial
cincinnati, oh
the knowledge report
ABSORPTION UP AS INDUSTRIAL MARKET
CONTINUES TO MOVE IN THE
RIGHT DIRECTION
executive summary
The Greater Cincinnati industrial market started the year on a strong note, producing 706,211 square
feet of positive net absorption for the first quarter of 2012. This positive momentum was carried over
from 2011, as the fourth quarter finished on an upswing. The overall vacancy rate stands at 9.2% and
market indicators the overall weighted asking rate for industrial properties in the first quarter was $3.31 per square foot.
Q1 12 Q2 12*
northern kentucky
VACANCY The Northern Kentucky submarkets showed an impressive 438,011 square feet of net absorption.
NET ABSORPTION Most of this activity was tied to the Airport submarket, as this area posted 509,805 square feet of
positive absorption. Larger deals of note that contributed to this activity include Schwarz Paper
construction — —
leasing 316,000 square feet of space at Airpark International Distribution Center #1; Verst Group
rental rate — — Logistics leasing 290,521 square feet of space at 1100 Burlington Pike; and LeanCor Supply Chain
leasing 106,920 square feet of space at 2265 Progress Drive. Rental rates at the Airport averaged
*Projected Change to Following Quarter $3.07 per square foot, while the Florence market was slightly higher at $3.26 per square foot.
sUBURBAN OHIO SUBMARKETS
On the northern side of the river, Tri-County/Union Centre led the way with 497,710 square feet of
positive absorption. General Motors was the largest transaction of note in this submarket, as the
company purchased a 394,480-square-foot building at 8752 Jacquemin Drive that they were
overall vacancy rate currently occupying. Most other submarkets on the Ohio side showed modest gains, with the exception
of Lockland/Evendale giving back 196,057 square feet of space. Rental rates in the Ohio submarkets
10.5%
ranged from $2.27 per square foot in Hamilton to $4.76 per square foot in the Western Corridor.
10.0% construction
On the construction side, one large speculative building is still under construction and several smaller
build-to-suit projects are continuing to move forward. The speculative building is in Monroe, as IDI
9.5%
9 5%
continues construction on its 553,338-square-foot distribution center at 1100 Logistics Way. This
building is expected to be completed in May of 2012. Additional construction of speculative industrial
9.0% space is not anticipated anytime soon, but we will continue to see build-to-suit projects hit our market
4Q 09
1Q 10
2Q 10
3Q 10
4Q 10
1Q 11
2Q 11
3Q 11
4Q 11
1Q 12
as manufacturing continues to improve.
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2. the knowledge report | Q1 2012 | industrial | cincinnati
UNEMPLOYMENT employment forecast
The Bureau of Labor Statistics While the first quarter started strong, we
11.00% announced good news for the market, as expect the industrial market to level off
10.50%
Ohio Unemployment Rate
the U.S. unemployment rate continued to again for the remainder of 2012. As
US Unemployment Rate
10.00% fall. While the validity of these government mentioned in previous quarters, there
9.50% numbers can be debatable, it’s a good are still large blocks of space in
9.00% sign that companies are beginning to hire Tri-County that have yet to hit the
8.50%
employees and put people back to work. market. These spaces are listed as
The overall U-3 unemployment rate available for lease/sale, but are still
8.00%
came in at 8.2% for March, down from occupied to some degree. The spaces
7.50%
8.3% in January and February. In includes Avon Products on Progress
7.00%
comparison, in October of 2010, the rate Place, CEVA Logistics on Windisch Road
May-11
Sep-11
May-09
Mar-10
Sep-09
Jul-10
Nov-10
Mar-11
Mar-09
Jan-09
May-10
Sep-10
Jan-11
Jul-11
Nov-11
Jul-09
Nov-09
Jan-12
Jan-10
stood at 10.0%. Ohio’s unemployment and the Liz Claiborne Facility on
rate is at 7.6%, a nice sign that our state Jacquemin Drive. We should start to see
is a little healthier than the other 49 those spaces become vacant in the next
states across the country. As commercial three quarters, which will increase the
real estate is tied directly to job growth, overall vacancy rate several basis points.
we hope these numbers continue to push
us in a positive direction.
update Recent Transactions
first quarter activity
Property submarket tenant/buyer size type
8752 Jacquemin Drive Tri-County General Motors 394,480 Sale
11520 Mosteller Road Tri-County Trident Capital 358,386 Investment Sale
Airpark International DC #1 NKY Schwarz Paper 316,000 Lease Renewal
1100 Burlington Pike NKY Verst Group Logistics 290,521 Lease
3720 Langley Drive NKY Levi Strauss & Co. 151,444 Lease Renewal
7585 Empire Drive NKY Trident Capital 148,365 Investment Sale
7910-7920 Kentucky Drive NKY Corken Steel 131,329 Sale
375 Northpointe Drive Hamilton/Fairfield Prestige Display & Packing 123,524 Lease Renewal
2265 Progress Drive NKY LeanCor Supply Chain 106,920 Lease
1499 Jamike Avenue NKY Close the Loop 81,200 Lease
4115 Thunderbird Lane Northwest Trident Capital 70,000 Investment Sale
World Park Building 8 Tri-County Rite Rug 60,000 Lease
9525 Glades Drive Tri-County Pivotek 51,070 Lease
Covington Capital Building Dayton General Pet Supply Ohio Valley 50,000 Lease
106 Circle Freeway Drive Tri-County MH Equipment 43,805 Sale
1320 Russell Street NKY Scott Randall Systems, LLC 35,000 Lease Renewal
300 Distribution Circle Hamilton/Fairfield Cincinnati Grinding Technologies 34,334 Lease
9750 Crescent Park Tri-County K&W Development 30,000 Sale
World Park Building 1 Tri-County Target 19,200 Lease
9422 Meridian Way Tri-County Port Logistics 19,200 Lease
9431 Sutton Place Tri-County Cincinnati Abrasives 18,468 Sale
World Park @ Union Centre 4 Tri-County Rockwell Automation 16,940 Lease Renewal
Crescent Point Commerce Center Tri-County Wheels Pro 16,000 Lease Renewal
Transactions are believed to be accurate but not guaranteed.
p. 2 | Colliers International

3. the knowledge report | Q1 2012 | industrial | cincinnati
INDUSTRIAL SUBMARKET DATA
Quarterly
SUBMARKET Total Inventory Total Vacant SF Vacancy Rate YTD Absorption Avg. Rate
Absorption
Airport 27,221,161 2,445,013 9.0% 509,805 509,805 $3.07
Blue Ash 12,787,682 1,086,545 8.5% 68,667 68,667 $3.75
Kenton/Campbell County 5,845,329 100,900 1.7% 0 0 $3.90
Central/Midtown 47,423,206 4,051,790 8.5% (6,192) (6,192) $2.85
Covington 8,338,550 400,477 4.8% 33,773 33,773 $3.64
Eastern Corridor 12,650,115 2,823,082 22.3% (44,005) (44,005) $3.30
Florence 24,447,909 1,059,130 4.3% (105,567) (105,567) $3.26
Hamilton 7,972,378 648,296 8.1% (106,927) (106,927) $2.27
I-71 North Corridor 10,980,157 1,535,149 14.0% 76,343 76,343 $3.90
Lockland/Evendale 20,650,536 1,097,590 5.3% (196,057) (196,057) $2.85
I-75 North Corridor 21,991,003 1,965,268 8.9% (16,339) (16,339) $3.65
Tri-County/Union Centre 66,964,416 7,692,188 11.5% 497,710 497,710 $3.41
Western Corridor 7,126,143 324,516 4.6% (5,000) (5,000) $4.76
MARKET TOTALS 274,398,585 25,229,944 9.2% 706,211 706,211 $3.31
avg. asking rates (per sf-full service gross) quarterly net absorption
General Rate Flex Rate Distribution Rate
$8
1,500,000
$7
1,000,000
$6
Square Feet
500,000
$5
0
$4
$3 -500,000
$2 -1,000,000
2Q 10
1Q 11
3Q 11
4Q 11
4Q 09
2Q 11
1Q 12
1Q 10
3Q 10
4Q 10
2Q 11
1Q 12
1Q 10
3Q 10
4Q 10
2Q 10
1Q 11
3Q 11
4Q 11
4Q 09
Colliers International | p. 3

4. the knowledge report | Q1 2012 | industrial | cincinnati
I-75 NORTH
522 offices in
HAMILTON
62 countries on
6 continents
TRI-COUNTY/ United States: 147
UNION CENTRE Canada: 37
Latin America: 19
I-71 NORTH Asia: 36
LOCKLAND/ BLUE
WESTERN EVENDALE ASH ANZ: 165
CORRIDOR EMEA: 118
• $1.8 billion in annual revenue
CENTRAL/ EASTERN • 1.25 billion square feet under
MIDTOWN CORRIDOR management
COVINGTON • Over 12,300 professionals
INT’L
AIRPORT
CEO | Principal:
AIRPORT Shenan P. Murphy, CCIM
+1 513 721 4200
KENTON Colliers International | Greater Cincinnati
FLORENCE CAMPBELL 425 Walnut Street, Suite 1200
COUNTY Cincinnati, OH 45202
Colliers International statistics are audited annually
Industrial Services Greater Cincinnati
|
and may result in revisions to previously reported
quarterly and final year-end figures
Chuck A. Ackerman, CCIM, SIOR Erin M. Casey, GA-C, MICP™ Michael E. Daly, SIOR
Brokerage Senior Vice President Senior Brokerage Associate Brokerage Senior Vice President
chuck.ackerman@colliers.com erin.casey@colliers.com Principal | Cincinnati
dir +1 513 562 2266 dir +1 513 562 2225 mike.daly@colliers.com
dir +1 513 562 2206
John B. Gartner, III, SIOR William K. Keefer, SIOR Steve R. Miller
Brokerage Senior Vice President Brokerage Senior Vice President Brokerage Vice President
Principal | Cincinnati Principal | Cincinnati steve.miller@colliers.com
john.gartner@colliers.com bill.keefer@colliers.com dir +1 513 562 2252
dir +1 513 562 2207 dir +1 513 562 2235
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