Akron Industrial Real Estate Market: A Snapshot
As a local real estate appraiser, I’ve been closely monitoring the industrial real estate market in Akron. Recent data from CoStar Analytics provides valuable insights into our market’s performance as of June 2024. Here are the key trends:
Inventory and Construction:
The total industrial inventory in Akron stands at 35.1 million square feet, showing a slight decrease of 0.1% from the prior period. Currently, there’s 123,000 square feet under construction, unchanged from the previous period.
Absorption and Vacancy:
The market has experienced negative absorption over the past 12 months, with -76,337 square feet absorbed. This represents a significant shift from the positive absorption of 643,000 square feet in the prior period. Consequently, the vacancy rate has increased to 3.3%, up 0.2% from 3.1% previously.
Rental Rates:
Despite the increased vacancy, market asking rents have risen. The current average asking rent is $6.07 per square foot, up 4.2% from $5.82 in the prior period. This suggests continued demand for quality industrial space.
Sales Metrics:
The market sale price per square foot has seen a modest increase to $42, up 0.8% from $41 previously. The market capitalization rate has risen to 10.6%, up 0.5% from 10.1%, indicating a slight increase in perceived risk or expected returns for investors.
Availability:
The total available space is 1.3 million square feet, with an availability rate of 3.8%. This includes 1.1 million square feet of vacant space and 120,000 square feet of sublet space.
Sales Activity:
Over the past year, there have been 33 properties sold, with a total sales volume of $24 million. The average time on market for these properties was 6.3 months.
Historical Trends:
Looking at the 3-year averages (2021-2024), we see:
- Average vacancy rate: 2.98%
- Average net absorption: -140,045 square feet annually
- Average market asking rent: $5.94 per square foot
- Average market sale price: $42 per square foot
Future Outlook:
While current absorption is negative, historical data shows cyclical patterns. The continued rise in asking rents and sale prices suggests underlying strength in the market, despite short-term challenges.
For property owners and investors, this data indicates a market in transition. The rising cap rates and negative absorption suggest caution, but increasing rents and sale prices point to ongoing demand for industrial space in Akron.
As always, individual properties may perform differently based on their specific characteristics and locations. For personalized valuation or investment advice, it’s recommended to consult with a local real estate professional.
(Note: All data sourced from CoStar Analytics report, June 2024)
