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

1. JLL Research
Office Outlook
Cincinnati | Q4 2020
An in-depth look at the Cincinnati office
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 Office 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.
Occupancy gains remain stunted as a result of the
COVID-19 pandemic.
• Atlas Air’s new headquarters in Erlanger delivered this quarter,
resulting in just over 100,000s.f. of occupancy gains in the Northern
Kentucky submarket.
• Protective Life Insurance committed to a nearly 67,000 s.f. lease
relocating from the CBD to the NKY Riverfront submarket.
• Vacancy rose year-over-year ending 2020 at 19.4% with several larger
vacancies coming online in the West Chester and Midtown
submarkets.
As the pandemic evolved throughout the majority of 2020, uncertainty
lingered among the office sector. Many companies moved their employees
remote through the last three quarters of the year, leaving an impact on the
need for physical office space. Subleases increased over the latter half of
the year with several large local companies shrinking their footprint in the
market; creating a spike in available space. Despite a slight increase in
vacancy in 2020, tenants have begun reassessing their space needs as we
head into the new year. While leasing velocity is still down compared to
historical levels, the market has begun to see several larger office users
recommitting to their office needs. Protective Life Insurance has decided to
relocate to the Northern Kentucky Riverfront from the CBD, taking nearly
70,000 s.f. off the market. In addition, law firm, Ulmer & Berne, committed to
relocating its offices within the CBD at the beginning of 2022.
The market ended with a net loss in occupancy gains, but Atlas Air’s new
headquarters delivering in the Northern Kentucky submarket provided a
boost to those numbers to round out 2020. In addition, several speculative
construction projects are underway for the first time in several years,
indicating landlords believe space needs will come back strong post
pandemic.
Outlook
Shifting office dynamics in the last nine months has left many users
wondering what purpose office will service in a post pandemic world. As a
light at the end of a tunnel has begun to show, several office-users in
Cincinnati are beginning to commit to long-term leases, likely setting a
trend for other tenants in the market. Heading into 2021, transaction
velocity may remain diminished in the first quarter but as the year
progresses, lease transactions should begin to pick back up as we continue
to gain clarity on the vaccine distribution.
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.
Fundamentals Forecast
YTD net absorption -157,287 s.f. ▶
Under construction 715,506 s.f. ▶
Total vacancy 19.4% ▲
Sublease vacancy 573,011 s.f. ▲
Direct asking rent $20.63 p.s.f. ▶
Sublease asking rent $18.88 p.s.f. ▶
Concessions Stable ▶
-1,000,000
-500,000
0
500,000
1,000,000
1,500,000
2016 2017 2018 2019 2020
Supply and demand (s.f.) Net absorption
Deliveries
14%
16%
18%
20%
22%
2006 2008 2010 2012 2014 2016 2018 2020
Total vacancy (%)
$10
$15
$20
$25
2006 2008 2010 2012 2014 2016 2018 2020
Average asking rent ($ p.s.f.)
Direct Sublease

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 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.)
YTDtotal net
absorption
(s.f.)
YTDtotal 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 -5,754 -63,577 -0.5% 16.5% 17.7% $20.18 0 219,506
CBDPeripheral Totals 1,839,670 5,511 15,911 0.9% 35.4% 35.4% $19.85 0 364,000
Midtown Totals 2,608,767 -32,948 -2,827 -0.1% 3.6% 6.8% $26.79 0 0
Urban Totals 16,172,071 -33,191 -50,493 -0.3% 16.6% 18.0% $20.57 0 583,506
Blue Ash/Montgomery Totals 4,996,248 -29,467 -58,284 -1.2% 20.6% 22.4% $20.85 0 0
East Totals 1,138,534 -14,196 -20,363 -1.8% 11.9% 11.9% $15.94 0 0
Fields Ertel / Mason Totals 2,604,342 50,172 -127,413 -4.9% 15.7% 21.5% $21.10 0 0
Kenwood Totals 1,411,516 -7,550 40,334 2.9% 8.7% 9.0% $30.29 0 132,000
Northern Kentucky Totals 2,959,207 122,857 155,217 5.2% 19.9% 23.4% $19.70 100,083 0
Northern Kentucky Riverfront Totals 1,155,268 48 19,899 1.7% 13.9% 13.9% $22.90 0 0
Tri-County Totals 3,287,828 -30,215 -1,284 0.0% 27.2% 27.2% $16.79 0 0
West Totals 156,329 0 -7,025 -4.5% 10.0% 10.0% $15.95 0 0
West Chester Totals 1,541,789 -137,774 -107,875 -7.0% 17.1% 17.1% $22.85 0 0
Suburbs Totals 19,251,061 -46,125 -106,794 -0.6% 18.8% 20.6% $20.66 100,083 132,000
Cincinnati Totals 35,423,132 -79,316 -157,287 -0.4% 17.8% 19.4% $20.63 100,083 715,506
CBD A 6,905,746 13,520 18,240 0.3% 12.6% 14.2% $21.64 0 219,506
CBDPeripheral A 1,007,476 5,511 32,160 3.2% 43.7% 43.7% $24.93 0 364,000
Midtown A 1,556,903 -7,339 -1,442 -0.1% 3.8% 6.4% $29.28 0 0
Urban A 9,470,125 11,692 48,958 0.5% 14.5% 16.1% $22.66 0 583,506
Blue Ash/Montgomery A 2,752,319 -14,580 14,078 0.5% 18.2% 19.5% $24.18 0 0
East A 741,078 -7,762 -12,248 -1.7% 3.2% 3.2% $20.35 0 0
Fields Ertel / Mason A 1,630,862 50,823 -104,885 -6.4% 18.1% 27.1% $21.89 0 0
Kenwood A 996,823 2,525 54,230 5.4% 3.7% 4.1% $32.88 0 132,000
Northern Kentucky A 1,628,393 111,014 98,335 6.0% 27.7% 34.1% $20.15 100,083 0
Northern Kentucky Riverfront A 1,029,768 48 24,680 2.4% 9.4% 9.4% $22.90 0 0
Tri-County A 1,001,196 0 -32,225 -3.2% 14.0% 14.0% $21.48 0 0
West A 22,472 0 0 0.0% 0.0% 0.0% $0.00 0 0
West Chester A 1,329,626 -136,456 -115,717 -8.7% 17.5% 17.5% $23.43 0 0
Suburbs A 11,132,537 5,612 -73,752 -0.7% 16.0% 18.6% $23.52 100,083 132,000
Cincinnati A 20,602,662 17,304 -24,794 -0.1% 15.3% 17.4% $23.23 100,083 715,506
CBD B 4,817,888 -19,274 -81,817 -1.7% 22.2% 22.7% $18.30 0 0
CBDPeripheral B 832,194 0 -16,249 -2.0% 25.5% 25.5% $16.40 0 0
Midtown B 1,051,864 -25,609 -1,385 -0.1% 3.4% 7.4% $20.72 0 0
Urban B 6,701,946 -44,883 -99,451 -1.5% 19.7% 20.6% $18.02 0 0
Blue Ash/Montgomery B 2,243,929 -14,887 -72,362 -3.2% 23.5% 26.1% $17.31 0 0
East B 397,456 -6,434 -8,115 -2.0% 28.1% 28.1% $14.22 0 0
Fields Ertel / Mason B 973,480 -651 -22,528 -2.3% 11.7% 12.2% $17.73 0 0
Kenwood B 414,693 -10,075 -13,896 -3.4% 20.8% 20.8% $20.50 0 0
Northern Kentucky B 1,330,814 11,843 56,882 4.3% 10.3% 10.3% $18.69 0 0
Northern Kentucky Riverfront B 125,500 0 -4,781 -3.8% 50.5% 50.5% $0.00 0 0
Tri-County B 2,286,632 -30,215 30,941 1.4% 33.0% 33.0% $15.62 0 0
West B 133,857 0 -7,025 -5.2% 11.6% 11.6% $15.95 0 0
West Chester B 212,163 -1,318 7,842 3.7% 14.7% 14.7% $17.44 0 0
Suburbs B 8,118,524 -51,737 -33,042 -0.4% 22.7% 23.4% $16.81 0 0
Cincinnati B 14,820,470 -96,620 -132,493 -0.9% 21.3% 22.2% $17.25 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
Q4 2020
Cincinnati Office Outlook
New lease
This dashboard analyzes a partial list of office leasing activity in the Cincinnati market in Q4 2020.
3
Building : 312 Elm St
Tenant: Robbins, Kelly, Patterson &
Tucker
Square Feet: 15,044
1
Building: Rivercenter I
Tenant: Protective Life
Square Feet: 67,000
5
Building: Kenwood Commons
Tenant: Home Healthcare Solutions
Square Feet: 8,057
1
4
3
5
2
Building: Kenwood Commons I
Tenant: Interact for Health
Square Feet: 15,099
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: Scripps Center
Tenant: Ulmer & Berne
Square Feet: 38,533

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
Q4 2020
Cincinnati Office Outlook
This dashboard analyzes office sales activity in the Cincinnati market ≥30,000 square feet since January 1, 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.
$185,697,066
18
$134
8.0%
31.5%
68.5%
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 class
At 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
$119,647,678
$64,874,388
$1,175,000
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
A B C
RBA (s.f.) $ p.s.f. Sale date
537,400 $68 Mar-20
132,929 $192 Oct-20
386,300 $53 Aug-20
38,515 $379 Nov-20
178,917 $74 Feb-20
Zamir Equities Highbrook Investors $36,387,354
Building Buyer Seller Sale price ($)
4350 Malsbary Rd
302 W 3rd St
8805 Governors Hill Drive
Former IRS Processing
Center
Columbia Plaza
$24,800,000
$20,500,000
$14,600,000
$13,250,000
Time Equities
Lincoln Property Group
City of Covington
Union Savings Bank Acabay Inc.
United States of America
The Sanders Trust
Highbrook Investors
Top sellers (s.f.)
Top buyers (s.f.)
Sales volume $ by submarket
20%
18%
14%
10%
7%
6%
5%
4%
13%
Zamir Equities
Group RMC
City of Covington
IMC Real Estate
Management
Time Equities
HJH Investments
Union Savings Bank
Excelsior Capital
Bethesda Hospital Inc
Other
26%
19%
14%
6%
6%
5%
5%
4%
4%
Highbrook Investors
Hines
United States of America
Hudson Advisors
Lone Star Funds
Acabay Inc.
Hemmer Management
Group
Smith/Hallemann
Partners
Wells Real Estate
Other
$1,600,000
$10,211,000
$12,750,000
$20,500,000
$21,104,324
$28,525,000
$34,144,388
$56,862,354
Midtown
Northern Kentucky
Tri-County
Northern Kentucky
Riverfront
East
Blue Ash/Montgomery
Fields Ertel/Mason
CBD

6. Q4 2020
Employment
Cincinnati Office 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
-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
* 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*
-40
-30
-20
-10
0
10
20
30
40
201
4
201
5
201
6
201
7
201
8
201
9
202
0
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 November 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
About JLL
JLL (NYSE: JLL) is a leading professional services firm that
specializes in real estate and investment management.
Our vision is to reimagine the world of real estate, creating
rewarding opportunities and amazing spaces where
people can achieve their ambitions. In doing so, we will
build a better tomorrow for our clients, our people and
our communities. JLL is a Fortune 500 company with
annual revenue of $16.3 billion, operations in over 80
countries and a global workforce of more than 93,000 as
of September 30, 2019. JLL is the brand name, and a
registered trademark, of Jones Lang LaSalle Incorporated.
For further information, visit jll.com.
About JLL Research
JLL’s research team delivers intelligence, analysis and
insight through market-leading reports and services that
illuminate today’s commercial real estate dynamics and
identify tomorrow’s challenges and opportunities. Our
more than 400 global research professionals track and
analyze economic and property trends and forecast
future conditions in over 60 countries, producing
unrivalled local and global perspectives. Our research and
expertise, fueled by real-time information and innovative
thinking around the world, creates a competitive
advantage for our clients and drives successful strategies
and optimal real estate decisions.
Contact
Abby Armbruster
Senior Research Analyst
+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.