Cincinnati Commercial Office Space for Rent

Q4 2025

Cincinnati Commercial Real Estate Market Report

Focus: Q4 2025 Market Trends

Executive Summary

The Cincinnati commercial real estate (CRE) market is demonstrating resilience and adaptability as 2025 concludes. The Office sector is stabilizing, with vacancy rates holding steady and leasing activity showing positive momentum [1, 5]. Industrial fundamentals remain mixed but healthy; while vacancy has ticked up to 6.5% due to new supply, leasing activity is up significantly year-over-year [2]. Retail is following national trends of tight availability and modest growth [2]. Multifamily is absorbing a wave of new deliveries, with occupancy holding firm around 94% and rent growth stabilizing [1, 6].

TenantBase Proprietary Data [7] highlights the distribution of active tenant demand over the last 90 days:

  • Retail/Storefront led market activity with 72.00% of all searches [7].
  • Warehouse was the second most active sector at 23.00% [7].
  • Office accounted for 7.00% of total search volume [7].

Office Market

Market Overview Cincinnati's office market is finding a new equilibrium, with vacancy rates stabilizing and tenant demand focusing on quality and flexibility.

  • Vacancy & Availability: The overall vacancy rate held steady at 20.6% to 22.9% depending on the report, with Class A properties in the CBD seeing positive momentum [1, 5].
  • Net Absorption: Net absorption turned positive in Q3 2025, driven by professional services and healthcare tenants expanding their footprints [1, 5].
  • Rental Rates: Average asking rents have increased slightly to $20.49 - $20.69 per SF, with Class A rates commanding a premium of over $22.60 per SF [1, 5].
  • Market Drivers: Tenant demand is shifting toward mid-sized spaces (20,000–49,999 SF) as companies move away from remote-first models [1]. TenantBase data shows a split preference, with 40.00% of office inquiries seeking leases of Less than one year and 20.00% seeking 2-3 Years [7].

TenantBase Activity [7]

  • Demand Share: Office accounted for 7.00% of total search volume [7].
  • Lease Term Preference: Demand is split between short-term agility and mid-term stability:
    • Less than one year: 40.00% of deals [7].
    • 2-3 Years: 20.00% of deals [7].
    • 3-5 Years: 20.00% of deals [7].
  • Size Requirements: The average lower size requirement for office space is 1,333 SF, with larger requirements for 3-5 Years averaging 2,500 SF [7].

Industrial & Warehouse Market

Market Overview The Cincinnati industrial market remains a logistics powerhouse, though a surge in new supply has pushed vacancy rates higher.

  • Vacancy & Rent: Vacancy rose to 6.5% in Q3 2025, up nearly 700 basis points year-over-year [2]. Despite this, asking rents have remained stable at $6.32 per SF (NNN) [2].
  • Demand & Supply: Net absorption was negative (1.9 million SF) in Q3 due to large move-outs, including a major closure by Levi's [2]. However, leasing activity year-to-date is up 66.0%, totaling 6.9 million SF [2].
  • Construction: The construction pipeline includes 2.6 million SF of active projects, primarily build-to-suit, which will help balance supply dynamics in 2026 [2].
  • Leasing Highlights: TenantBase data shows steady demand for mid-term leases, with 40.00% of warehouse inquiries for 3-5 Year terms [7].

TenantBase Activity [7]

  • Demand Share: Warehouse accounted for 23.00% of total search volume [7].
  • Lease Term Preference: Demand is spread across lease terms:
    • 3-5 Years: 40.00% of deals [7].
    • 5+ Years: 20.00% of deals [7].
    • 2-3 Years: 20.00% of deals [7].
  • Size Requirements: The average lower size requirement for warehouse space is 6,900 SF, with larger requirements for 5+ Years averaging 12,500 SF [7].

Retail Market

Market Overview Cincinnati's retail sector is stable, mirroring national trends of limited new supply and steady consumer demand.

  • Vacancy & Availability: Retail vacancy remains low, supported by a lack of new speculative construction [2].
  • Market Trends: Demand is driven by essential services, quick-service restaurants, and experiential retail [2].
  • Leasing Activity: TenantBase data indicates robust retail interest, accounting for nearly three-quarters of all local searches [7].

TenantBase Activity [7]

  • Demand Share: Retail/Storefront activity dominated with 72.00% of all search volume [7].
  • Lease Term Preference: Retail tenants show a clear preference for longer commitments:
    • 5+ Years: 34.48% of deals [7].
    • 1-2 Years: 27.59% of deals [7].
    • Less than one year: 13.79% of deals [7].
  • Top Locations: Tenant interest is highest in Cincinnati (City) (14 deals), Blue Ash (3 deals), and West Chester (3 deals) [7].

Multifamily Market

Market Overview The multifamily market is stabilizing as it absorbs a significant wave of new supply, with occupancy rates holding firm and rent growth poised to return.

  • Vacancy & Occupancy: Vacancy stabilized at 7.2% to 7.5%, with stabilized occupancy holding strong at 94.0% - 94.1% [1, 6].
  • Rents: Average asking rents rose 1.8% year-over-year to $1,321 per unit, outperforming the national average [1].
  • Construction: The pipeline is receding from its 2024 peak, with 4,600 units currently under construction [1]. Deliveries are expected to slow by 55% in 2025, supporting tighter conditions ahead [6].
  • Investment: Cincinnati remains a top market for rent growth, ranking in the top 10 nationally for year-over-year gains [6].

2026 Outlook

Looking ahead to 2026, the Cincinnati market is positioned for continued stability and gradual growth.

  • Multifamily Balance: As new supply tapers off, multifamily vacancy is projected to compress, supporting rent growth of 3.7% by year-end 2025 and into 2026 [6].
  • Industrial Recovery: The industrial sector is expected to absorb recent vacancies, with leasing activity pointing to a rebound in net absorption [2].
  • Office Resilience: The office market will continue its slow recovery, with Class A assets leading the way as tenants prioritize quality and amenities [5].

Sources

  1. MMG Real Estate Advisors: Cincinnati Q3 2025 Market Report
  2. Cushman & Wakefield: Cincinnati MarketBeat Industrial Q3 2025
  3. CBRE: Cincinnati Industrial Figures Q3 2025
  4. CBRE: Cincinnati Office Figures Q3 2025
  5. Newmark: Cincinnati Office Market Overview Q3 2025
  6. MMG Real Estate Advisors: 2025 Cincinnati Forecast
  7. TenantBase Proprietary Market Data (Cincinnati - Last 90 Days)

Information in this report is aggregated from various third-party sources and synthesized using artificial intelligence and other research tools. While we believe these sources to be reliable, we cannot guarantee the absolute accuracy or completeness of the data. This report is intended for informational purposes to provide market insight and should be independently verified prior to any use in a real estate transaction or legal commitment.