Economic Overview
As of Q3 2026, the unemployment rate in the combined Cincinnati / Dayton region fell significantly on a year-over-year (YOY) basis to 3.4%, 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
Following steady increases in 2024 and 2025, shopping center vacancy in the combined Cincinnati / Dayton market returned to less than 6.0%. As of Q3 2026, vacancy was 5.9%, a 30-basis point (bps) decrease on a YOY basis. Among the two primary markets, the vacancy rate in Greater Cincinnati decreased YOY to 4.7%, while vacancy in Greater Dayton grew slightly to 8.3%. Between the four types of shopping centers in the region, Q3 2026 vacancy rates ranged between 3.4% (Lifestyle) and 6.6% (Neighborhood/Community). Outside of Unanchored Strip Centers (+80 bps), the three remaining shopping center types reported YOY vacancy decreases.
Net absorption in the Cincinnati / Dayton region was negative 50,000 square feet (sf) in Q3 2026. However, year-to-date (YTD) 2026 net absorption was 264,000 sf, a dramatic increase from negative 534,000 sf in the same period one year ago. In both the quarterly (63,000 sf) and YTD 2026 (187,000 sf) figures, net absorption in Lifestyle Center category was higher than the other three center categories combined. Between the two metro markets, YTD 2026 net absorption was significantly higher in Cincinnati, at 318,000 sf, than in Dayton, at negative 54,000 sf.
Pricing
Asking rental rates averaged $13.00 triple net per square foot (psf) per year across all categories, a 3.9% increase on a YOY basis. It should be noted that these figures are used for benchmarking and include all classes and availability sizes.
