In the latest edition of our monthly news brief, JLL’s regional team curates the top commercial real estate industry articles impacting Ohio markets to keep you in-the-know.
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Strengthening Economy Sparks Demand and Leasing Activity in Cleveland
Redevelopment projects have introduced new residential space in Cleveland, sparking a population boom in the city over the last five years.
Investors have since taken notice of the improving market conditions. However, with few office development projects in the pipeline, rental rates are expected to rise in the urban core. As a result, developers are shifting focus to the East submarket where several construction projects are currently in the works.
As residents and businesses flock to Cleveland, the city’s strengthening economy will continue to increase demand for office space, lowering vacancy rates in the coming months.
Cincinnati’s Office Market Outlook Remains Positive After a Slow Start to 2017
Leasing activity within Class A buildings stalled at the start of 2017 as large tenants, such as the Cincinnati Enquirer, vacated and consolidated office space in the city’s CBD. Vacancy rates in premier spaces skyrocketed and have just recently begun to fall again. As a result, developers have been hesitant to invest in new speculative development in the area.
Despite a slow beginning to 2017, the newly vacated space has sparked new opportunities to encourage leasing activity for the remainder of the year. Vacancy rates are expected to decline, as a lack of development projects will force companies to occupy existing Class A space.
Logistical Advantages Draw In Investments for Industrial Space in Columbus
With the rise of e-commerce, third-party logistic providers are expanding operations to Midwest markets. As an affordable and centralized location, Columbus provides companies with exceptional logistic capabilities and infrastructure, granting premier access to U.S. markets and helping to drive down transportation costs.
Leasing activity has slowed down considerably since 2016. However, Columbus’ low vacancy rates and speculative development continue to draw in new investment and construction, making it an ideal location for logistics providers.