Commercial Real Estate News Brief: January 2015

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Commercial real estate is a dynamic industry. Keep up with Spaces’ monthly recaps of the most valuable industry articles we’ve recently come across, focused on news in Ohio, Michigan and Pennsylvania.  

Global CRE Investment Volumes Signal Continued Uptick for 2015  

In the final quarter of last year, global commercial real estate capital markets reached new heights “at near-record levels,” according to JLL.

JLL CRE News Brief

Newspaper image via NS Newsflash.

  • Investment Volumes: +9% YOY
  • Office Vacancy Rates: 12.7%
  • Capital Value Growth: +8.3% YOY

In addition to movement in capital markets, occupier demand continues at a healthy pace, with more activity expected from traditional markets in 2015. Thanks to higher levels of demand and a shortage of supply, experts foresee new development.

Another trend: investors are noticing secondary markets. In fact, JLL experts say, “There is a notable growing interest in higher-yielding assets in smaller and second-tier locations, particularly in the U.S. and Europe…”

Introducing the 3D-Printed Apartment

A construction firm in China unveiled the world’s tallest 3D-printed apartment building, along with an 11,840-square-foot “neoclassical” mansion. A greener option, the buildings are printed with recycled construction materials.

Could this be a long-term alternative to traditional construction? 3D-printed buildings are known for quick construction and affordability. The mansion, for example, was developed in three days and cost just $161,000 to produce.

This novel construction method has potential to make a lasting impact on the commercial real estate industry, especially in countries like China that are facing rapid urbanization.

Duke Realty Selects JLL to Lease Largest Office Portfolio in Cincinnati

Duke Realty Corp., an Indianapolis-based real estate investment trust, selected JLL as exclusive leasing agent for its 2.2 million-square-foot portfolio in Cincinnati. Executive Vice President at JLL, Bill Poffenberger, told the Cincinnati Business Courier that the transaction was “the biggest third-party leasing assignment ever won by a company in the history of Cincinnati.”

The portfolio includes 19 buildings (mostly suburban) in four submarkets. Long-time Duke representative, Jay Morey, joined the JLL team to continue representing Duke.

Visit JLL’s full release for details.

News Wrap-Up in Our Region  

Cincinnati

  • Greater Cincinnati’s largest private company, Total Quality Logistics, moved more than 100 employees from a Milford office to its newest location in Batavia.
  • Exeter Property Group, one of the largest U.S. industrial real estate owners, acquired the 299,000-square-foot Interstate Commerce Center I for $12.6 million. The company continues to shop the market for other opportunities.

Columbus

  • The Joseph, located in Short North, is now at full occupancy with its latest tenant, an e-commerce payments provider called Klarna Group. Up to 40 office suites, however, will be available at the Joseph after Memorial Day.
  • Fuyao Group invested in the former General Motors plant in Moraine. The new facility is expected to create 1,550 jobs.

Cleveland

  • An $18 million project, called Creswell Apartments, will transform an office building in Cleveland’s downtown theater district. Construction is already underway at 1220 Huron Road, which will eventually offer 80 new apartment units.
  • Beachwood-based ORG Holdings LLC has plans for a 200,000-square-foot warehouse in Solon. According to Crain’s Cleveland, this is “another sign the Northeast Ohio industrial property development market is heating up…”

Detroit

  • General Development Co. and Friedman Integrated Real Estate Solutions purchased 25 vacant acres from RACER Trust. The Detroit land will be home to a large logistics center, creating more than 200 jobs.
  • The Crain Communications Inc. building in downtown Detroit will be the new home to law firm Garan Lucow Miller PC this June. The firm will leave its Rivertown district offices of more than 30 years to occupy about 33,000 square feet in the Crain building.

Pittsburgh

  • Popular local companies American Beverage Corp. and Genco recently made moves in the Papercraft building, one of the largest in the region. American Beverage reduced its office size, while Genco decided to expand its facility with a 144,000-square-foot addition.
  • In the process of selling 525 William Penn Place, the Bank of New York Mellon will vacate the building in phases. After moving 1,500 employees out of the building, the bank could potentially leave 650,000 square feet vacant.

What major commercial real estate moves in the Midwest caught your attention last month? Share in the comments below!

Newspaper image via NS Newsflash.

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