The amount of empty industrial space in the Dayton area continues to grow. Millions of square feet of bulk warehouse and manufacturing spaces sit empty in cities from West Carrollton to Sidney. Nearly every section of Dayton experienced a bump up in empty industrial space last year, except for the eastern part of the Dayton area, which includes Beavercreek.

The closure of the General Motors Assembly Plant in Moraine, and the ensuing shockwaves it sent throughout the region, have played a role in the emptying of industrial space.

However, real estate experts look at the numbers with optimism. Activity for many brokers is higher than it has been for the past two years. Hopefully, they said, this is the bottom. Or close to it.

The overall industrial vacancy rate for the Dayton area increased to 24.2 percent in 2009, a nearly 30 percent increase since 2008, according to the most recent study from Dayton-based Gem Real Estate Group Inc.

The regional breakdown shows:

• The south market was hit hardest, with its vacancy rate increasing from 17.2 percent in 2008 to 26.7 percent last year.;
• The far north — or Upper Valley — market saw large increases, with vacancy rates flirting with 30 percent.
• The north market increased a little more than one percentage point, from 17.6 percent to 18.9 percent;
• The west market rose from 22.7 percent to 25.7 percent; and
• The east market was the best performing with a positive absorption of 24,000 square feet, lowering the industrial vacancy rate to 20.3 percent from 21.5 percent.

Last year, the region had 3.45 million square feet of vacant space, out of 18.3 million square feet surveyed. This year, the total square footage surveyed increased to 19.3 million square feet, but the amount of vacant space jumped to nearly 4.7 million square feet.

Dave Dickerson, president of Gem Real Estate Group, said the increased industrial vacancy rates are the ripples of the closure of the GM plant and Delphi’s departure. Local auto parts suppliers have shrunk their businesses or shut their doors, leaving millions of square feet unoccupied.

However, the 4.4 million-square-foot GM plant — which closed in December 2008 — was not included in the survey.

“It will take some time. We lost a major employer, and we’re feeling that impact,” Dickerson said.

However, the empty space, along with Dayton’s geographic location, leave the area ripe with opportunity, he said.

“The question is, have we hit bottom?,” said Mark Dlott, vice president and principal with the Dayton office of Colliers Turley Martin Tucker. “I like to think that we have.”

The problem with refilling the GM Moraine plant is being able to do so without playing musical chairs locally.

Gerry Smith, vice president of Dayton-based Miller-Valentine Realty Inc., said relocating area businesses to the plant would just empty out other buildings.

Despite the vacancy rates, Dayton is seeing its fair share of new industrial buildings. The most recent is Caterpillar Logistics Services, which is building a 1 million-square-foot-plus distribution center in Clayton expected to open in 2011. The Illinois-based company had specific needs for its distribution center, which is why it didn’t fill in existing space.

Clear height is one of the most important features in warehouse space. Today’s users are looking for 28 to 36-foot clear height. Many of the vacant buildings in Dayton offer 19 or 20-foot clear height.

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