The Cincinnati market area experienced a significant decrease in industrial sales activity in 2013, compared to 2012. According to our analysis, using the CoStar Group database with outliers removed, 122 industrial properties transferred in 2012, which included a total of approximately 5.5 million square feet of building area. In 2013, 86 sales were recorded, which included approximately 3.5 million square feet. The average price per square foot also fell from $27 in 2012 to $25 in 2013.
The decrease in sales activity is possibly attributed to an anomalously high activity rate in 2012, which significantly reduced the number of available properties in 2013. According to several market participants, the 2012 activity is attributed to sellers that were finally willing to sell at prices that were below historical levels, due to the significantly weakened economy starting at the end of 2008.
The 2013 sales activity is still strong compared to 2009, which was a historically low year that saw 59 recorded sales for a total of 2.7 million square feet. Except for the spike in 2012, industrial sales activity has been relatively consistent in the Cincinnati market since 2010. The consistent sales activity in the Cincinnati market is expected to continue based on economic outlook and available properties. There are currently over 180 industrial properties listed for sale within the market in the $20 to $50 per square foot price range. These properties create a total of approximately 7.3 million square feet of industrial property available for sale, which calculates to an inventory of 25 months based on the 2013 monthly absorption average (292,000 SF/month).