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

1. JLL Research
Office Outlook
Cincinnati | Q2 2020
An in-depth look at the Cincinnati office
market. Analysis includes leasing, sales,
construction and employment.

2. © 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.
Q2 2020
Cincinnati
Office Insight
After a strong start to 2020, the Cincinnati office market saw a dip in
transaction velocity throughout the second quarter. As many businesses
remained shuttered over the last several months, movement within the
market remained minimal, indicating that many tenants in the Cincinnati
market feel it is too early to determine their future workplace needs. Most
leases signed in the second quarter were renewals or expansions to existing
leases. U.S. Bank signed the largest new lease at Landings II for just over
24,000 square feet. In addition, no large amounts of sublease space have
come onto the market since the COVID-19 pandemic, again showing that
many tenants in the Cincinnati market have taken a wait and see approach to
how things will evolve over the coming months.
While activity slowed as expected within the second quarter, several
construction projects are continuing track. The construction pipeline is
currently the most active it has been in several years. Build-to-suit projects for
the University of Cincinnati and Atlas Air are currently underway totaling
nearly 300,000 square feet. In addition, speculative development is on the rise
for the first time in several years with Uptown Gateway under construction in
the CBD Peripheral submarket, and the Sandstone at Kenwood under
construction in the Kenwood submarket. After several slow years of
development activity, construction has started picking up. Along with multiple
active projects, several other developments are in the pipeline with plans to
break ground in the latter half of 2020 and the beginning of 2021.
Outlook
As we head into the second half of 2020, a lot of uncertainty remains as the
pandemic continues to exist within the United States. With businesses
beginning to reopen, it is likely that activity will begin to pick back up, but
momentum will be slow as tenants in the market try to determine changing
office dynamics and future space needs.
-1,000,000
0
1,000,000
2,000,000
2016 2017 2018 2019 YTD
2020
Supply and demand (s.f.) Net absorption
Deliveries
Market activity dips as tenants wait out COVID-19
impacts
15%
17%
19%
21%
2006 2008 2010 2012 2014 2016 2018 2020
Total vacancy
• Vacancy increased slightly with Ensemble Health Partners vacating their
125,000-square-foot headquarters in Mason.
• Leasing activity stalled in the second quarter with few new leases signed.
• Office construction has reached its highest point in several years with
just shy of 300,000 square feet of speculative construction under
development.
$14
$16
$18
$20
$22
$24
2006 2008 2010 2012 2014 2016 2018 2020
Average asking rent ($ p.s.f.) Direct
Sublease
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.
Fundamentals Forecast
YTD net absorption 73,693 s.f. ▲
Under construction 596,083 s.f. ▲
Total vacancy 18.9% ▶
Sublease vacancy 443,746 s.f. ▶
Direct asking rent $20.57 p.s.f. ▶
Sublease asking rent $17.03 p.s.f. ▶
Concessions Stable ▶

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.
Q2 2020
Cincinnati Office Outlook
Statistics
Methodology: JLL tracks office buildings ≥10,000 square feet. Government, medical and owner-occupied buildings are excluded.
© 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.
Class
Inventory
(s.f.)
Total net
absorption
(s.f.)
YTD total net
absorption
(s.f.)
YTD total net
absorption (%
of stock)
Direct
vacancy (%)
Total
vacancy (%)
Average
direct asking
rent ($ p.s.f.)
YTD
Completions
(s.f.)
Under
Development
(s.f.)
CBD Totals 11,723,634 -49,194 9,981 0.1% 16.7% 17.6% $20.70 0 0
CBD Peripheral Totals 1,839,670 -2,247 21,517 1.2% 35.1% 35.1% $19.77 0 364,000
Midtown Totals 2,608,767 -8,297 32,668 1.3% 3.2% 5.5% $27.16 0 0
Urban Totals 16,172,071 -59,738 64,166 0.4% 16.6% 17.6% $20.94 0 364,000
Blue Ash/Montgomery Totals 4,996,248 13,469 67,025 1.3% 19.2% 19.9% $20.52 0 0
East Totals 1,138,534 9,882 6,468 0.6% 15.0% 15.0% $19.74 0 0
Fields Ertel / Mason Totals 2,604,342 -139,356 -166,515 -6.4% 17.2% 23.1% $20.01 0 0
Kenwood Totals 1,441,516 1,934 10,680 0.7% 10.4% 10.9% $28.89 0 132,000
Northern Kentucky Totals 2,859,124 -864 10,633 0.4% 22.8% 25.8% $19.34 0 100,083
Northern Kentucky Riverfront Totals 1,155,268 44,049 44,859 3.9% 11.7% 11.7% $21.80 0 0
Tri-County Totals 3,287,828 -60,143 14,782 0.5% 26.7% 26.7% $17.22 0 0
West Totals 156,329 -1,925 -7,025 -4.5% 10.0% 10.0% $15.95 0 0
West Chester Totals 1,541,789 21,429 28,620 1.9% 8.2% 8.2% $22.33 0 0
Suburbs Totals 19,180,978 -111,525 9,527 0.1% 18.4% 19.9% $20.35 0 232,083
Cincinnati Totals 35,353,049 -171,263 73,693 0.2% 17.6% 18.9% $20.57 0 596,083
CBD A 6,905,746 624 31,250 0.5% 12.7% 14.1% $22.11 0 0
CBD Peripheral A 1,007,476 8,592 25,270 2.5% 44.3% 44.3% $24.83 0 364,000
Midtown A 1,556,903 -7,109 5,897 0.4% 3.3% 6.0% $29.28 0 0
Urban A 9,470,125 2,107 62,417 0.7% 14.5% 16.0% $22.95 0 364,000
Blue Ash/Montgomery A 2,752,319 35,329 60,772 2.2% 16.6% 17.8% $23.86 0 0
East A 741,078 0 861 0.1% 1.4% 1.4% $20.35 0 0
Fields Ertel / Mason A 1,630,862 -126,599 -164,445 -10.1% 21.6% 30.8% $20.75 0 0
Kenwood A 1,026,823 6,990 14,494 1.4% 7.5% 7.8% $32.70 0 132,000
Northern Kentucky A 1,528,310 3,827 -5,212 -0.3% 31.0% 36.6% $19.78 0 100,083
Northern Kentucky Riverfront A 1,029,768 47,459 47,459 4.6% 7.2% 7.2% $21.80 0 0
Tri-County A 1,001,196 -42,975 -32,561 -3.3% 14.0% 14.0% $21.46 0 0
West A 22,472 0 0 0.0% 0.0% 0.0% $0.00 0 0
West Chester A 1,329,626 18,018 21,659 1.6% 7.2% 7.2% $23.84 0 0
Suburbs A 11,062,454 -57,951 -56,973 -0.5% 15.2% 17.6% $23.08 0 232,083
Cincinnati A 20,532,579 -55,844 5,444 0.0% 14.9% 16.9% $23.03 0 596,083
CBD B 4,817,888 -49,818 -21,269 -0.4% 22.5% 22.6% $18.57 0 0
CBD Peripheral B 832,194 -10,839 -3,753 -0.5% 24.0% 24.0% $16.13 0 0
Midtown B 1,051,864 -1,188 26,771 2.5% 3.1% 4.7% $21.01 0 0
Urban B 6,701,946 -61,845 1,749 0.0% 19.7% 20.0% $18.15 0 0
Blue Ash/Montgomery B 2,243,929 -21,860 6,253 0.3% 22.3% 22.6% $17.64 0 0
East B 397,456 9,882 5,607 1.4% 40.3% 40.3% $19.69 0 0
Fields Ertel / Mason B 973,480 -12,757 -2,070 -0.2% 9.7% 10.2% $17.12 0 0
Kenwood B 414,693 -5,056 -3,814 -0.9% 17.7% 18.4% $19.48 0 0
Northern Kentucky B 1,330,814 -4,691 15,845 1.2% 13.4% 13.4% $18.67 0 0
Northern Kentucky Riverfront B 125,500 -3,410 -2,600 -2.1% 48.8% 48.8% $0.00 0 0
Tri-County B 2,286,632 -17,168 47,343 2.1% 32.3% 32.3% $16.01 0 0
West B 133,857 -1,925 -7,025 -5.2% 11.6% 11.6% $15.95 0 0
West Chester B 212,163 3,411 6,961 3.3% 15.1% 15.1% $18.01 0 0
Suburbs B 8,118,524 -53,574 66,500 0.8% 22.8% 23.0% $17.51 0 0
Cincinnati B 14,820,470 -115,419 68,249 0.5% 21.4% 21.6% $17.73 0 0

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.
Leasing
Q2 2020
Cincinnati Office Outlook
New lease
Renewal
This dashboard analyzes a partial list of office leasing activity in the Cincinnati market in Q2 2020.
3
Building : Pfieffer Woods
Tenant: Landmark Health
Square Feet: 10,695
1
Building: Landings II
Tenant: US Bank
Square Feet: 24,373
5
Building: Westlake Center
Tenant: Principle Life Insurance
Square Feet: 8,552
1
4
3
5
2
Building: RiverCenter I
Tenant: Data Intensity
Square Feet: 16,745
2
© 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
Building: RiverCenter I
Tenant: Hilltop Companies
Square Feet: 9,609

5. © 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.
Sales
Q2 2020
Cincinnati Office Outlook
This dashboard analyzes office sales activity in the Cincinnati market ≥30,000 square feet since July 1, 2019.
© 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.
$128,010,354
13
$81
8.0%
72.1%
27.9%
7.5-8.5%
8.0-9.0%
Transactions details
Core Class A CBD
Core Class A suburban
Average Class A price p.s.f.
Sales activity by building classAt a glance
Sales volume
Number of transactions
Average Class A cap rate
Urban sales volume as % of
total
Suburban sales volume as
% of total
Cap rate range
$82,912,354
$45,098,000
$128,010,354
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
A B Total
Sales volume $ by submarket Top buyers (s.f.) Top sellers (s.f.)
19%
28%
15%
9%
9%
6%
5%
5% 4%
Group RMC
Acabay Inc
City Club Apartments
Time Equties
Shelbourne Global
Solutions
Pivot Realty Group
Excelsior Capital
IMC Real Estate
Management
Other
33%
19%
15%
9%
9%
6%
5% 4%
Smith/Hallemann
Partners
McKnight Realty Partners
S.N. Phelps
Highbrook Investors
C-III Asset Management
Corporex Companies, Inc.
Wells Real Estate
Other
$1,600,000
$4,250,000
$10,048,000
$21,450,000
$90,662,354
Midtown
Tri-County
Northern Kentucky
Blue Ash/Montgomery
CBD
RBA (s.f.) $ p.s.f. Sale date
394,366 $62 Jul-19
178,917 $74 Feb-20
100,000 $128 Mar-20
300,000 $38 Aug-19
177,033 $49 Jul-19
120,066 $35 Aug-19
Group RMC McKnight Realty Partners $24,500,000
Building Buyer Seller Sale price ($)
4th & Vine Tower
One Northlake Place
302 W 3rd St
Kemper Pointe
Huntington Center
$4,200,000Lookout Corporate Center Pivot Realty Group Corporex Companies, Inc.
$13,250,000
$12,750,000
$11,500,000
$8,700,000Shelbourne Global Solutions
City Club Apartments
Excelsior Capital
Time Equties Highbrook Investors
Smith/Hallemann Partners
S.N. Phelps
C-III Asset Management

6. Q2 2020
Employment
Cincinnati Office Outlook
13.3%U.S. unemployment*
-11.4%U.S. 12-month job growth
14.1%Cincinnati unemployment
-14.8%Cincinnati 12-month job growth
13.7%Ohio unemployment
-13.6%Ohio 12-month job growth
-15.0%
-10.0%
-5.0%
0.0%
5.0%
2014 2015 2016 2017 2018 2019 2020
Cincinnati U.S.
-58,000
-25,700
-15,100
-13,700
-11,100
-3,800
-1,500
0
0
0
-75,000 -65,000 -55,000 -45,000 -35,000 -25,000 -15,000 -5,000
Leisure & Hospitality
Trade, Transportation & Utilities
Professional & Business…
Other Services
Government
Financial Activities
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
20%
17%
16%13%
11%
7%
7%
Trade, Transportation & Utilities
Professional & Business Services
Educational & Health Services
Government
Manufacturing
Leisure & Hospitality
Financial Activities
Mining, Logging & Construction
Other Services
Information
* Represents 12-month change in employment. All charts represent the latest economic data available from the Bureau of Labor Statistics as of November 2019.
© 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.
Job growth by sector*Historical employment
Job growth*
Employment by industry Office employment*
-35
-30
-25
-20
-15
-10
-5
0
5
10
2014 2015 2016 2017 2018 2019 2020
Professional & Business Services Information
Government Financial Activities
© 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 April 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.

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.
Andrew Batson
Vice President, Director of Research
+1 216 937 4374
andrew.batson@am.jll.com
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+1 513 252 2148
abby.armbruster@am.jll.com
© 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.