Economic Overview
As of Q3 2026, the unemployment rate in Greater Cincinnati decreased significantly on a year-over-year (YOY) basis to 3.5%, which was lower than the national rate of 4.2%. In J.D. Power’s 2026 airport customer satisfaction study, Cincinnati/Northern Kentucky International Airport ranked seventh among North American airports in the medium-sized category (4.5 million to 9.9 million annual passengers), ahead of peers in Pittsburgh, Columbus and Cleveland.
Supply and Demand
The overall office vacancy rate in Greater Cincinnati has been trending upward for the past six quarters to reach a recent record-high of 26.1% in Q3 2026. While overall vacancy was up 130 basis points (bps) YOY, much of the increase was due to vacancy in the Central Business District (CBD), which grew 450 bps YOY to 28.1%. Suburban vacancy was flat YOY, and construction recently started on the third office building at the Montgomery Quarter development in the Kenwood submarket. ClarkDietrich Building Systems pre-leased the top two floors of this 47,000-square foot (sf) complex.
Overall net absorption has been negative for five consecutive quarters. However, Q3 2026 net absorption of negative 17,000 sf was the smallest amount of negative absorption during this period. Year-to-date (YTD) 2026 net absorption was negative 275,000 sf, which was lower than the 350,000 sf in 2025 but similar to the negative 210,000 sf in 2024.
In Q3 2026, the largest drivers of net absorption were Class A leases in northern suburban submarkets. Siemens moved into 55,000 sf on two floors at 4605 Duke Drive in Mason. Nearby, BSI Engineering subleased 27,000 sf at Deerfield Crossing – Tower B. At Kenwood Collection along I-71, Chamberlain University and FloodID occupied a combined 44,000 sf, which pushed the building to 86.0% occupied. Apart from absorption, YTD 2026 leasing activity totaled 731,000 sf, which was on pace with the same period one year ago. Leasing activity is an indicator of future quarterly net absorption.
Pricing
Across all categories, the overall gross average asking rental rate was $21.33 per square foot (psf) in Q3 2026, a 2.8% YOY increase. Class A average rates increased 2.1% YOY to $23.43 psf in Q3 2026.
