Downtown office building sold by U.S. Bank

U.S. Bank has made a significant move in Cincinnati by selling its downtown office building at 425 Walnut near Fountain Square to Atlanta-based Crescent Investment Group. This sale is expected to increase vacancy rates in Cincinnati’s central business district, as the bank plans to lease a significant portion of its current space and potentially relocate office jobs to a facility at Lunken Airport.

According to U.S. Bank spokesman Jeff Shelman, there will be no job reductions associated with this transaction. The new owners have agreed to keep the bank’s name on the building and make new investments in the property. Chief Transformation Officer Mark Runkel stated in an email to bank employees that they will work with local leaders to determine the best long-term use of their space in the Cincinnati market.

This downsizing at 425 Walnut adds to a trend in downtown Cincinnati, where there is currently over 1 million square feet of empty office space in six buildings that are less than 70% full. Building owners have been converting buildings to residential or hotel uses in an effort to fill empty space, while office tenants are moving to smaller spaces with amenities that attract remote workers back to the office.

The impact of U.S. Bank’s downsizing and the departure of Taft Law on the vacancy rate of the 562,000-square-foot building remains to be seen. However, a leasing brochure for the property indicates that the building is currently more than 97% full, with only 46,000 square feet available. Stay tuned for more updates on this developing story.