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

1. Q1 2021
Cincinnati Industrial Outlook

2. © 2021 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.
Top trends
The last couple years have felt like a lull in the Cincinnati industrial market
following record absorption gains in 2017-2018, coupled with large amounts of
speculative construction caused a spike in vacancy throughout 2019-2020. But,
despite following a year of economic uncertainty, the Cincinnati market
exploded to start 2021. Occupancy gains reached just above 3 m.s.f. in the first
quarter, anchored by Crane Logistics purchase of Aero Commerce Center in the
Airport submarket, followed by the deliveries of Standard Textile and Kroger-
Ocado’s build-to-suit facilities. Vacancy decreased almost a full percentage
point quarter over quarter with several large vacancies coming offline, indicating
strong fundamentals in the market.
Along with strong gains in occupancy, transaction volume is up to start the year
as well. Saddle Creek Logistics leased one of the few vacant buildings in the
Northern Kentucky area at the Logistics Park 75 development, DHL expanded
their footprint in the Monroe/Middletown submarket with the addition of a new
350,000 s.f. facility, and Protective Industrial Products leased the recently
delivered 177,000 s.f. building at Fairfield Commerce Center. As tenants continue
to enter the market looking for space, construction continues its surge.
Currently, around 8 m.s.f. is under construction, including the 3.0 m.s.f. Amazon
Prime Air Hub facility. Of that 8 m.s.f., around 3.5 m.s.f. is speculative product,
largely located in the Airport submarket.
Outlook
Looking to the second quarter of 2020, several tenants have already committed
to space needs that will further add to current occupancy gains and continue to
drive down the vacancy rate. With several developers announcing plans for
future developments in the first quarter, more projects should break ground
throughout 2021, offering more options to tenants entering the market. We
continue to look to the Airport submarket as a main driver for market activity
entering the second quarter.
Market starts year with largest single quarter occupancy
gains in several years
• Occupancy gains soared to start the year hitting about 3 m.s.f.
following a year of economic uncertainty.
• Vacancy is down to 6.1% from 7.0% in the fourth quarter with Crane
Logistics purchase of Aero Commerce Center taking one of the largest
blocks of space off the market.
• The Airport submarket continues to be one of the strongest
performing submarkets in Cincinnati anchoring absorption gains for
the market.
Insight
Fundamentals Forecast
YTD net absorption 3,060,020 s.f. ▲
Under construction 8,002,299 s.f. ▲
Total vacancy 6.1% ▶
Sublease vacancy 738,279 s.f. ▶
Direct asking rent $4.32 p.s.f. ▲
Sublease asking rent $3.54 p.s.f. ▶
Concessions Stable ▶
0
10
2017 2018 2019 2020 2021
Millions
Supply and demand (s.f.) Net absorption
Deliveries
0%
2%
4%
6%
8%
10%
12%
2007 2009 2011 2013 2015 2017 2019 2021
Total vacancy (%)
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
2007 2009 2011 2013 2015 2017 2019 2021
Average asking rent ($ p.s.f.)
Direct Sublease

3. The property set was updated to reflect the latest market dynamics, including the removal of functionally obsolete properties and the addition of recently completed developments.
© 2021 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.
Statistics
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 190,033,354 3,110,370 3,110,370 1.6% 7.4% 8.3% $4.36 1,031,404 1,031,404 7,272,299
Manufacturing 69,677,781 -50,350 -50,350 -0.1% 2.7% 4.0% $3.91 0 0 550,000
Overall Total 259,711,135 3,060,020 3,060,020 1.2% 6.1% 7.2% $4.32 1,031,404 1,031,404 8,002,299
Airport
Warehouse & Distribution 33,005,411 1,523,652 1,523,652 4.6% 6.6% 13.3% $4.43 650,400 650,400 6,189,259
Manufacturing 2,194,532 0 0 0.0% 0.0% 0.0% $0.00 0 0 0
Overall Total 35,199,943 1,523,652 1,523,652 4.3% 6.2% 12.6% $4.43 650,400 650,400 6,189,259
Blue Ash
Warehouse & Distribution 8,162,292 81,874 81,874 1.0% 7.1% 7.4% $3.95 0 0 0
Manufacturing 2,524,938 -38,350 -38,350 -1.5% 11.7% 11.7% $3.25 0 0 0
Overall Total 10,687,230 43,524 43,524 0.4% 8.2% 8.4% $3.72 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 30,050,824 92,493 92,493 0.3% 2.4% 2.9% $5.71 46,004 46,004 0
Manufacturing 14,811,484 0 0 0.0% 3.2% 3.8% $3.13 0 0 0
Overall Total 44,862,308 92,493 92,493 0.2% 2.7% 3.2% $4.51 46,004 46,004 0
Covington
Warehouse & Distribution 3,302,132 297,900 297,900 9.0% 0.1% 0.1% $0.00 0 0 0
Manufacturing 779,862 0 0 0.0% 0.0% 0.0% $0.00 0 0 0
Overall Total 4,081,994 297,900 297,900 7.3% 0.0% 0.0% $0.00 0 0 0
East
Warehouse & Distribution 6,593,689 -188,772 -188,772 -2.9% 5.7% 3.1% $4.38 0 0 0
Manufacturing 5,566,773 0 0 0.0% 11.4% 17.9% $4.98 0 0 0
Overall Total 12,160,462 -188,772 -188,772 -1.6% 8.3% 9.7% $4.83 0 0 180,000
Florence/Richwood
Warehouse & Distribution 16,856,281 234,392 234,392 1.4% 18.5% 18.1% $4.21 0 0 0
Manufacturing 7,882,930 0 0 0.0% 2.0% 7.8% $3.50 0 0 0
Overall Total 24,739,211 234,392 234,392 0.9% 13.3% 14.8% $4.17 0 0 0
Hamilton
Warehouse & Distribution 6,264,928 -940 -940 0.0% 5.6% 6.0% $4.00 0 0 0
Manufacturing 1,566,976 10,000 10,000 0.6% 6.1% 6.1% $0.00 0 0 0
Overall Total 7,831,904 9,060 9,060 0.1% 5.7% 6.1% $4.00 0 0 0
I-71 Corridor
Warehouse & Distribution 4,785,098 0 0 0.0% 1.2% 3.6% $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 0 0 0.0% 0.6% 1.8% $4.28 0 0 430,000
Monroe/Middletown
Warehouse & Distribution 15,300,043 169,431 169,431 1.1% 10.4% 6.5% $3.91 335,000 335,000 106,000
Manufacturing 7,575,128 -22,000 -22,000 -0.3% 0.3% 0.6% $0.00 0 0 200,000
Overall Total 22,875,171 147,431 147,431 0.6% 7.1% 4.5% $3.91 335,000 335,000 306,000
Tri County
Warehouse & Distribution 51,461,858 883,350 883,350 1.7% 9.4% 8.9% $4.35 0 0 547,040
Manufacturing 9,178,459 0 0 0.0% 1.2% 1.3% $6.00 0 0 350,000
Overall Total 60,640,317 883,350 883,350 1.5% 8.2% 7.7% $4.36 0 0 897,040
West
Warehouse & Distribution 4,229,740 0 0 0.0% 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 0 0 0.0% 0.2% 0.2% $0.00 0 0 0

4. 0
2,000,000
4,000,000
6,000,000
8,000,000
2014 2016 2018 2020
Absorption New supply
Inventory 58,243,645 s.f.
Total vacancy
7,777,187 /
13.4%
Total availability (vacant + construction)
10,993,882 /
17.8%
Average asking rent (NNN) $4.26
YTD completions 585,600 s.f.
Under construction 3,412,649 s.f.
Percent preleased 5.7%
Tenant Address s.f.
Saddle Creek 300 Richard Knock Way 544,320
DHL 3577 Yankee Rd 358,289
Honeywell 9842 International Dr 204,800
Protective Industrial 1261 Highland 177,088
PJ McNerny 5443 Duff Dr 166,400 $3.00
$3.50
$4.00
$4.50
$5.00
2014 2016 2018 2020
0%
7%
14%
21%
Rents Vacancy
Building s.f. $ p.s.f. Buyer
4805 Aero Pkwy 1,070,157 $74 Crane Logistics
201 Richard Knock 896,896 $55 Exeter
950 Wenstrup Ln 630,368 $82 Dollar General
1365 & 1370 Aviation 303,005 $99 Black Creek
2000 Gateway Blvd 139,617 $87
Dream
Industrial REIT
Address Available s.f. Rent
61 Logistics Blvd Now 1,097,458 $4.25
201 Richard Knock Now 896,896 $3.85
2497 Wright Blvd Q3 2021 817,200 $4.25
7900 Foundation Dr Q4 2021 772,000 $4.25
3401 Salzman Rd Now 755,160 $3.60
Modern bulk properties are defined as warehouses ≥75,000 square feet, built since 2000 with 24’ clear heights and ESFR.
© 2021 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.
Fundamentals Supply and demand
Recent leasing Asking rents and vacancy
Recent sales Large blocks
Modern Bulk

5. This map highlights a partial list of construction projects either planned, under construction, or recently completed.
© 2021 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
1
Bldg Name: Lakeland Logistics
Center
Square feet: 329,840
Tenant: TBD
Owner: IDI Logistics
Construction type: Speculative
Est. completion: 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: Q3 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: Q4 2021
6
Bldg Name: Fairfield Commerce
Park Bldgs I&II
Square feet: 547,040
Tenant: TBD
Owner: Ambrose Property Group
Construction type: Speculative
Est. completion: Q2 2021
4
Bldg Name: Kroger-Ocado
Square feet: 335,000
Tenant: Kroger, Ocado
Owner: The Kroger Co
Construction type: BTS
Completed: Q1 2021
5
Bldg Name: Standard Textile
Square feet: 585,800
Tenant: Standard Textile
Owner: Al Neyer
Construction type: BTS
Completed: Q1 2021
1
2
5
3
6
4

6. This dashboard analyzes industrial leases >10,000 over the last 12 months.
© 2021 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
Avg. building
construction date
668,741
7,346,708
140,746
Top leases
Size Building status Year built
589,200 Existing 2017
575,000 Existing 2019
544,320 Existing 2020
358,289 Existing 2019
345,600 Existing 2008
254,300 Existing 2019
252,000 Existing 1997
240,392 Existing 1967
212,585 Existing 2020
212,311 Existing 1963
Amazon
8779 Le Saint Dr Tri County
Saddle Creek Logistics Services
New Lease
Monroe/Middletown
DHL 3577 Yankee Rd
Kiswel Inc 7950 Dixie Hwy Florence/Richwood New Lease
Innomark Communications 8531 Trade Center Dr Tri County New Lease
US Nonwovens Corporation 7625 Empire Dr Florence/Richwood New Lease
Cintas Corporation 3577 Yankee Rd Monroe/Middletown
UPS
New Lease
Crescent Park Corporation 5226 E Provident Dr Tri County New Lease
Renewal
Lease type
2365 Litton Ln Airport New Lease
300 Richard Knock Way Florence/Richwood
Airport
660 Erlanger Rd New Lease
New Lease
Proximo Spririts
Tenant Address Submarket
Avg. lease size (in s.f.)
Expansion in building
Renewal
New lease
Leasing activity by submarket QTD
At a glance
Total leases 82
Leasing activity by size QTD
Leasing activity
1994
Leasing activity (s.f.) by transaction type
101,143
Total s.f. leased 8,293,695
Total s.f. leased:
Warehouse/Distribution
8,293,695
-
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
36%
31%
11%
7%
6%
6%
Airport
Tri County
Florence/Richwood
Monroe/Middletown
Central/Midtown
Blue Ash
I-71 Corridor
East
Woodlawn/Evendale
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021
Historical leasing activity

7. This dashboard analyzes industrial sales ≥$1,000,000 and ≥30,000 square feet over a 12-month period, ending March 31, 2021.
© 2021 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
$454,104,841
54
$95
5.5%
90.1%
6.5%
5.25-5.75%
7.0-7.5%
Top sales transactions
Size (s.f.) $ p.s.f. Sale date
1,070,157 $74 Mar-21
630,368 $82 Dec-20
479,512 $70 Jun-20
103,500 $280 Dec-20
580,166 $42 Jun-20
374,160 $65 Jun-20
533,720 $46 Apr-20
400,296 $49 May-20
160,984 $100 Oct-20
142,021 $99 Oct-20
Core5 Industrial Partners
Link Logistics Real Estate
Neyer Properties
Hubert Company
$51,631,882
$33,650,000
$29,000,000
$24,600,000
1365 Aviation Blvd Black Creek Group Molto Properties $14,105,549
11511 Reed Hartman Hwy 90 North Real Estate Partners RER Financial Group LLC $19,500,000
1370 Aviation Blvd Black Creek Group Molto Properties $16,094,451
Link Logistics Real Estate $24,500,000
10900 Kenwood Rd Hillwood Citimark Management Company Inc. $24,294,430
8779 Le Saint Dr Granite REIT
3191 River Rd Exan Capital
9555 Dry Fork Rd Lightstone Group
950 Wenstrup Ln Dollar General
8754 Trade Port Dr Granite REIT
4805 Aero Pkwy Crane Logistics Al Neyer, Hillwood $79,459,157
Building address Buyer company Seller company Sales price $
Sales volume $ by submarket
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
Top sellers (s.f.)
Top buyers (s.f.)
7,281,545 s.f.
113,440 s.f.
$447,989,841
$6,115,000 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
$500,000,000
Warehouse / Distribution Manufacturing
Sum of Price ($) Sum of RBA (SF)
14%
12%
9%
8%
8%
7%
5%
4%
33%
Crane Logistics
Granite REIT
Dollar General
Lightstone Group
TradeLane Properties
Hillwood
90 North Real Estate
Partners
Black Creek Group
Other
14%
12%
9%
8%
8%
7%
6%
5%
31%
Al Neyer, Hillwood
Link Logistics Real
Estate
Core5 Industrial
Partners
Hubert Company
Dalfen Industrial
Citimark Management
Company Inc.
Prologis
RER Financial Group LLC
Other
$144,216,987
$131,136,850
$80,331,882
$43,794,430
$32,015,493
$15,730,000
$3,954,199
$2,650,000
$275,000
Airport
Tri County
Florence/Richwood
Blue Ash
Central/Midtown
East
I-71 Corridor
Covington
Hamilton

8. 6.2%
U.S. unemployment
-6.0%
U.S. 12-month job growth
5.3%
Cincinnati unemployment
-5.4%
Cincinnati 12-month job growth
5.0%
Ohio unemployment
-5.8%
Ohio 12-month job growth
Job growth*
Job growth by sector*
Historical employment
Industrial employment*
Employment by industry
*Represents 12-month change in employment. All charts represent the latest economic data available from the Bureau of Labor Statistics as of March 2021.
© 2021 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.
Economy
21%
16%
15%
12%
11%
9%
7%
Trade, Transportation & Utilities
Educational & Health Services
Professional & Business Services
Government
Manufacturing
Leisure & Hospitality
Financial Activities
Mining, Logging & Construction
Other Services
Information
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
2016 2017 2018 2019 2020 2021
Cincinnati U.S.
0%
4%
8%
12%
16%
900,000
1,000,000
1,100,000
2016 2017 2018 2019 2020 2021
Employment Unemployment
-24,300
-12,000
-9,100
-5,900
-5,800
-2,600
-2,300
-1,700
-400
1,100
-40,000-35,000-30,000-25,000-20,000-15,000-10,000-5,000 0 5,000
Leisure & Hospitality
Professional & Business Services
Manufacturing
Government
Educational & Health Services
Other Services
Trade, Transportation & Utilities
Mining, Logging & Construction
Information
Financial Activities
-80
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
2016 2017 2018 2019 2020 2021
Trade,Transportation & Utilities Manufacturing
Mining, Logging & Construction Other Services

9. Abby Armbruster
Senior Research Analyst
+1 513 252 2148
abby.armbruster@am.jll.com
Andrew Batson
Senior Vice President, Research
+1 216 937 4374
andrew.batson@am.jll.com
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© 2021 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.
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