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

1. JLL Research
Cincinnati | Q4 2020
Industrial Outlook
An in-depth look at the Cincinnati industrial
market. Analysis includes leasing, sales,
construction and employment.

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.
Q4 2020
Cincinnati Industrial Outlook
Insight
© 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.
Construction activity continuing full steam ahead
as e-commerce demand remains high.
• Construction activity is continuing strong with over 5.5 million-
s.f. delivering in 2020.
• The Airport submarket continues to be the most favorable
submarket in Cincinnati leading in occupancy gains and active
construction.
• Average asking rents steadily climbed over the last several
years currently sitting at $4.29 p.s.f.
The Cincinnati industrial market continued to fare well in 2020,
despite the disruptions the pandemic caused in day to day business
operations. E-commerce, traditional retailers and 3PL companies
remain the biggest demand drivers within the market, keeping
leasing velocity steady throughout 2020. Transaction activity in Q4
took place largely in the Florence/Richwood and Tri County
submarkets, with the largest leases being US Nonwovens, Innomark
Communication and Allen Distribution all for nearly 200,000 s.f.
Occupancy gains for the year ended just over 1.5 million-s.f.,
anchored by Dollar General’s purchase of Core5 Industrial Partner’s
newly delivered warehouse and Amazon’s lease of Al Neyer’s
Erlanger Commerce Center. Together they added over 1.0 million s.f.
of new occupancy in Northern Kentucky.
Construction activity remains at an all-time high with over 5.0
million-s.f. delivering in 2020. Active projects remain concentrated in
the Airport, Florence/Richwood, and Tri County submarkets.
Because of the surge in speculative construction over the last several
years, vacancy has seen a slight uptick compared to historical levels
currently sitting at 7%. The largest projects delivered to date include
Al Neyer’s Aero Commerce Center, and Core5 Industrial Partner’s
75/71 Logistics Center.
Outlook
Heading into 2021, the outlook for the Cincinnati market is positive.
With a surplus of new construction, vacancy may continue to rise as
several projects deliver in the first quarter. But, with several larger
tenants in the market, transaction velocity should be strong into the
new year.
Fundamentals Forecast
YTD net absorption 1,562,168 s.f. ▲
Under construction 8,139,530 s.f. ▲
Total vacancy 7.0% ▲
Sublease vacancy 738,279 s.f. ▲
Direct asking rent $4.29 p.s.f. ▶
Sublease asking rent $3.54 p.s.f. ▶
Concessions Stable ▶
2%
4%
6%
8%
10%
12%
2006 2008 2010 2012 2014 2016 2018 2020
Total vacancy (%)
$0
$2
$4
$6
2006 2008 2010 2012 2014 2016 2018 2020
Average asking rent ($ p.s.f.)
Direct Sublease
The health, policy, economic and financial disruption stemming from the COVID-19 pandemic
continue to create a fluid and evolving environment for all real estate sectors. Uncertainty
remains around market performance and implications will differ by market and sector.
0
2
4
6
8
2016 2017 2018 2019 YTD
2020
Supply and demand (s.f.) Net absorption
Deliveries
millions

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.
Q4 2020
Cincinnati Industrial Outlook
Statistics
© 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.
Inventory (s.f.)
Quarterly total
net absorption
(s.f.)
YTD total net
absorption (s.f.)
YTD total net
absorption (%
of stock)
Total vacancy
(%)
Total
availability
(%)
Average
total asking
rent ($
p.s.f.)
Quarterly
Completions
(s.f.)
YTD
Completions
(s.f.)
Under
construction (s.f.)
Cincinnati total
Warehouse & Distribution 188,977,621 154,105 1,924,717 1.0% 8.6% 10.0% $4.32 1,012,248 5,542,849 7,789,530
Manufacturing 69,614,007 108,291 -362,549 -0.5% 2.5% 3.7% $3.93 0 40,000 350,000
Overall Total 258,591,628 262,396 1,562,168 0.6% 7.0% 8.4% $4.29 1,012,248 5,582,849 8,139,530
Airport
Warehouse & Distribution 32,355,011 -263,623 475,713 1.5% 9.6% 15.8% $4.40 45,000 1,625,934 6,477,490
Manufacturing 2,194,532 0 115,000 5.2% 0.0% 0.0% $0.00 0 0 0
Overall Total 34,549,543 -263,623 590,713 1.7% 9.0% 15.0% $4.40 45,000 1,625,934 6,477,490
Blue Ash
Warehouse & Distribution 8,162,292 31,616 -80,589 -1.0% 8.1% 10.1% $4.13 0 0 0
Manufacturing 2,524,938 38,350 38,350 1.5% 10.2% 10.2% $3.21 0 0 0
Overall Total 10,687,230 69,966 -42,239 -0.4% 8.6% 10.1% $3.89 0 0 0
Campbell County
Warehouse & Distribution 2,133,491 0 0 0.0% 0.0% 0.0% $0.00 0 0 0
Manufacturing 1,045,402 0 0 0.0% 0.0% 0.0% $0.00 0 0 0
Overall Total 3,178,893 0 0 0.0% 0.0% 0.0% $0.00 0 0 0
Central/Midtown
Warehouse & Distribution 29,992,035 -134,914 344,246 1.1% 3.6% 3.0% $5.73 0 356,513 0
Manufacturing 14,811,484 6,285 -215,543 -1.5% 3.2% 3.8% $3.13 0 0 0
Overall Total 44,803,519 -128,629 128,703 0.3% 3.4% 3.3% $4.67 0 356,513 0
Covington
Warehouse & Distribution 3,302,132 5,600 79,468 2.4% 9.1% 9.1% $0.00 0 0 0
Manufacturing 779,862 0 0 0.0% 0.0% 0.0% $0.00 0 0 0
Overall Total 4,081,994 5,600 79,468 1.9% 7.3% 7.3% $0.00 0 0 0
East
Warehouse & Distribution 6,593,689 146,241 140,489 2.1% 2.8% 2.9% $4.21 0 0 0
Manufacturing 5,517,999 0 -95,650 -1.7% 11.5% 16.1% $4.98 0 0 0
Overall Total 12,111,688 146,241 44,839 0.4% 6.8% 8.9% $4.80 0 0 0
Florence/Richwood
Warehouse & Distribution 16,850,352 531,650 585,587 3.5% 19.3% 20.1% $4.14 544,320 1,407,188 0
Manufacturing 7,867,930 63,656 -137,500 -1.7% 2.1% 6.7% $3.50 0 0 0
Overall Total 24,718,282 595,306 448,087 1.8% 13.8% 15.8% $4.11 544,320 1,407,188 0
Hamilton
Warehouse & Distribution 6,263,988 -29,600 -122,616 -2.0% 5.6% 6.0% $4.00 0 0 0
Manufacturing 1,566,976 0 0 0.0% 0.6% 6.8% $0.00 0 0 0
Overall Total 7,830,964 -29,600 -122,616 -1.6% 4.6% 6.2% $4.00 0 0 0
I-71 Corridor
Warehouse & Distribution 4,785,098 36,215 -16,000 -0.3% 1.2% 4.6% $4.28 0 0 430,000
Manufacturing 5,235,416 0 0 0.0% 0.0% 0.0% $0.00 0 0 0
Overall Total 10,020,514 36,215 -16,000 -0.2% 0.6% 2.3% $4.28 0 0 430,000

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.
Q4 2020
Cincinnati Industrial Outlook
Statistics
© 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.
Inventory (s.f.)
Quarterly total
net absorption
(s.f.)
YTD total net
absorption (s.f.)
YTD total net
absorption (%
of stock)
Total vacancy
(%)
Total
availability
(%)
Average
total asking
rent ($
p.s.f.)
Quarterly
Completions
(s.f.)
YTD
Completions
(s.f.)
Under
construction (s.f.)
Cincinnati total
Warehouse & Distribution 188,977,621 154,105 1,924,717 1.0% 8.6% 10.0% $4.32 1,012,248 5,542,849 7,789,530
Manufacturing 69,614,007 108,291 -362,549 -0.5% 2.5% 3.7% $3.93 0 40,000 350,000
Overall Total 258,591,628 262,396 1,562,168 0.6% 7.0% 8.4% $4.29 1,012,248 5,582,849 8,139,530
Monroe/Middletown
Warehouse & Distribution 14,961,043 -24,000 186,996 1.3% 9.4% 7.8% $3.70 0 0 335,000
Manufacturing 7,575,128 0 24,000 0.3% 0.0% 0.6% $0.00 0 0 0
Overall Total 22,536,171 -24,000 210,996 0.9% 6.3% 5.4% $3.70 0 0 335,000
Tri County
Warehouse & Distribution 51,461,183 -165,996 330,860 0.6% 11.1% 11.4% $4.32 422,928 2,153,214 547,040
Manufacturing 9,178,459 0 -70,000 -0.8% 1.2% 1.3% $6.00 0 0 350,000
Overall Total 60,639,642 -165,996 260,860 0.4% 9.6% 9.8% $4.32 422,928 2,153,214 897,040
Woodlawn/Evendale
Warehouse & Distribution 7,887,567 0 -37,049 -0.5% 3.1% 3.2% $6.82 0 0 0
Manufacturing 10,607,639 0 -21,206 -0.2% 0.8% 0.8% $3.95 0 40,000 0
Overall Total 18,495,206 0 -58,255 -0.3% 1.8% 1.8% $5.96 0 40,000 0
West
Warehouse & Distribution 4,229,740 20,916 37,612 0.9% 0.3% 0.3% $0.00 0 0 0
Manufacturing 708,242 0 0 0.0% 0.0% 0.0% $0.00 0 0 0
Overall Total 4,937,982 20,916 37,612 0.8% 0.2% 0.2% $0.00 0 0 0

5. Q4 2020
Modern Bulk
Cincinnati Industrial Outlook
0
2,000,000
4,000,000
6,000,000
8,000,000
2014 2016 2018 2020
Absorption New supply
Inventory 57,658,045 s.f.
Vacancy 16.8%
Average asking rent (NNN) $4.22
YTD completions 3,966,548 s.f.
Under construction 3,636,280 s.f.
Percent preleased 12.0%
Tenant Address s.f.
Amazon 660 Erlanger Rd 575,000
DB Schenker 61 Logistics Blvd 264,601
Cintas 3577 Yankee Rd 254,300
Innomark 8531 Trade Center Dr 212,585
Allen Distribution 8778 Le Saint Dr 180,990
Supply and demand
Fundamentals
Asking rents and vacancy
Recent leasing
Modern bulk properties are defined as warehouses built since 1995, 28’ clear, ESFR, ≥150,000 s.f.
© 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.
Building s.f. $ p.s.f. Buyer
1370 Aviation Blvd 160,984 $99 Black Creek
950 Wenstrup Ln 630,368 $81 Dollar General
8779 Le Saint Dr 345,600 $71 Granite REIT
8754 Trade Port Rd 479,512 $70 Granite REIT
12121 Champion Way 336,847 $62 Exeter
Large blocks
Recent sales
Address Available s.f. Rent
4805 Aero Pkwy Now 1,070,234 $4.50
201 Richard Knock Way Now 896,896 $3.85
61 Logistics Blvd Now 832,857 $4.25
2497 Wright Blvd Q2 2021 817,200 TBD
3401 Salzman Rd Now 755,160 $3.60
© 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.
$3.00
$3.50
$4.00
$4.50
2014 2016 2018 2020
0%
4%
8%
12%
16%
20%
Rents Vacancy

6. © 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.
Q4 2020
Cincinnati Industrial Outlook
Construction
4
3
5
6
1
2
This map highlights a partial list of construction projects either planned, under construction, or recently completed.
© 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.
6
Bldg Name: Fairfield Commerce
Park Bldgs I&II
Square feet: 547,040
Tenant: TBD
Owner: Ambrose Property Group
Construction type: Speculative
Completed: Q2 2021
2
Bldg Name: Runway Logistics
Center Bldgs I & II
Square feet: 1,401,600
Tenant: TBD
Owner: Clarion Partners
Construction type: Speculative
Completed: Q2 2021
3
Bldg Name: C5 75/71 Northern
KY Logistics Center
Square feet: 772,000
Tenant: TBD
Owner: Core5 Industrial Partners
Construction type: Speculative
Est. completion: Q3 2021
4
Bldg Name: Kroger-Ocado
Square feet: 335,000
Tenant: Kroger, Ocado
Owner: The Kroger Co
Construction type: BTS
Est. completion: Q1 2021
5
Bldg Name: Standard Textile
Square feet: 585,800
Tenant: Standard Textile
Owner: Al Neyer
Construction type: BTS
Est. completion: Q1 2021
1
Bldg Name: Lakeland Logistics
Center
Square feet: 329,840
Tenant: TBD
Owner: IDI Logistics
Construction type: Speculative
Est. completion: Q1 2021
Speculative
Build-to-suit

7. © 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.
Q4 2020
Cincinnati Industrial Outlook
Sales
This dashboard analyzes all industrial sales ≥30,000 s.f over the last 12 months.
©.
© 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.
$399,723,764
54
$100
5.5%
96.9%
1.2%
5.25-5.75%
7.0-7.5%
Warehouse/Dist. sales
volume as % of total
Flex/R&D sales volume as %
of total
Cap rate range
Core Class A Ind.
Core Class A Flex
Average Class A price p.s.f.
At a glance
Total volume
Number of transactions
Average Class A cap rate
Sales activity by building type
6,783,321 s.f.
154,208 s.f.
31,625 s.f.
$387,326,167
$7,615,000 $4,782,597
0 s.f.
1,000,000 s.f.
2,000,000 s.f.
3,000,000 s.f.
4,000,000 s.f.
5,000,000 s.f.
6,000,000 s.f.
7,000,000 s.f.
8,000,000 s.f.
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
$350,000,000
$400,000,000
$450,000,000
Warehouse / Distribution Manufacturing Flex/R&D
Sum of Price ($) Sum of RBA (SF)
Sales volume $ by submarket Top sellers (s.f.)
Top buyers (s.f.)
12%
10%
9%
8%
8%
6%
5%
34%
Granite REIT
Brookfield Asset
Management
Dollar General
Lightstone Group
Hillwood
90 North Real Estate
Partners
7950 Dixie Highway
Inc.
Black Creek Group
Prologis
Other
12%
10%
9%
8%
8%
6%
4%
36%
Link Logistics Real
Estate
Cohen Asset
Management, Inc.
Core5 Industrial
Partners
Hubert Company
Citimark Management
Company Inc.
RER Financial Group LLC
Molto Properties
Industrial Property Trust
Union Township
Other
$164,507,251
$71,231,882
$53,848,240
$44,994,430
$32,791,961
$21,730,000
$4,000,000
$2,650,000
$1,775,000
$1,100,000
$1,095,000
Tri County
Florence/Richwood
Airport
BlueAsh
Central/Midtown
East
I-71 Corridor
Covington
Hamilton
Campbell County
Woodlawn/Evendale
Top sales transactions
Size (s.f.) $ p.s.f. Sale date
630,368 $82 Dec-20
697,500 $57 Feb-20
479,512 $70 Jun-20
103,500 $280 Dec-20
580,166 $42 Jun-20
Cohen Asset Management, Inc.
Link Logistics Real Estate
Neyer Properties
Hubert Company
$40,050,000
$33,650,000
$29,000,000
$24,600,000
3191 River Rd Exan Capital
9555 Dry Fork Rd Lightstone Group
8778 Le Saint Dr
Brookfield Asset
Management
8754 Trade Port Dr Granite REIT
950 Wenstrup Ln Dollar General Core5 Industrial Partners $51,631,882
Building address Buyer company Seller company Sales price $

8. © 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.
Q4 2020
Cincinnati Industrial Outlook
Leasing
This dashboard analyzes all leases over 10,000 s.f. signed in 2020.
©.
© 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.
At a glance
Total leases 87
Leasing activity by size QTD
Total s.f. leased 7,565,297
Total s.f. leased:
Warehouse/Distribution
7,553,885
-
1,000,000
2,000,000
3,000,000
4,000,000
500,000+ 250,000-499,999 100,000-249,999 50,000-99,999 10,000-49,999
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020
Historical leasing activity
Avg. building
construction date
286,981
7,000,070
140,746
Avg. lease size (in s.f.)
Expansion in building
Renewal
New lease
Leasing activity by submarket QTD
Leasing activity
1995
Leasing activity (s.f.) by transaction type
86,957
36%
31%
11%
7%
6%
6%
Airport
Tri County
Florence/Richwood
Monroe/Middletown
Central/Midtown
Blue Ash
I-71 Corridor
East
Woodlawn/Evendale
Top leases
Size Building status Year built
589,200 Existing 2017
575,000 Existing 2019
438,638
Under
Construction
2021
325,000 Existing 1956
254,300 Existing 2019
252,000 Existing 1997
240,392 Existing 1967
Amazon
3577 Yankee Rd Monroe/Middletown
Standard Textile
New Lease
Central/Midtown
Commonwealth 500 Murray Rd
Crescent Park Corporation 5226 E Provident Dr Tri County
Cintas Corporation
New Lease
US Nonwovens Corporation 7625 Empire Dr Florence/Richwood New Lease
New Lease
Lease type
2365 Litton Ln Airport New Lease
2960 Riverview Dr Airport
Airport
660 Erlanger Rd New Lease
New Lease
Proximo Spririts
Tenant Address Submarket

9. Q4 2020
Employment
Cincinnati Industrial Outlook
6.7%
U.S. unemployment*
-6.1%
U.S. 12-month job growth
4.8%
Cincinnati unemployment
-4.8%
Cincinnati 12-month job growth
5.7%
Ohio unemployment
-6.0%
Ohio 12-month job growth
-60
-50
-40
-30
-20
-10
0
10
20
2015 2016 2017 2018 2019 2020
Trade,Transportation & Utilities Manufacturing
Mining, Logging & Construction Other Services
Job growth by sector*
Historical employment
Job growth*
Employment by industry Industrial employment*
© 2019 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.
*Represents 12-month change in employment. All charts represent economic conditions through Novemberl 2020, which was the latest data available at the time of publishing this report.
© 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.
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
2014 2015 2016 2017 2018 2019 2020
Cincinnati U.S.
-12,500
-10,200
-6,200
-4,800
-3,900
-3,400
-800
0
0
0
-20,000 -10,000 0 10,000
Government
Leisure & Hospitality
Professional & Business…
Trade, Transportation & Utilities
Financial Activities
Other Services
Information
Mining, Logging & Construction
Manufacturing
Educational & Health Services
0%
4%
8%
12%
16%
900,000
1,000,000
1,100,000
2014 2015 2016 2017 2018 2019 2020
Employment Unemployment
21%
16%
16%
11%
11%
10%
7%
Trade, Transportation & Utilities
Professional & Business Services
Educational & Health Services
Government
Manufacturing
Leisure & Hospitality
Financial Activities
Mining, Logging & Construction
Other Services
Information

10. © 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
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© 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.