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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Cincinnati’s Economic Report Highlights Major Wins, Future Growth
Cincinnati’s newly released 2016 Economic Development report not only covers the major successes from the past year. It offers a glimpse at the growth expected for the remainder of this year.
The city finished 2016 on a high note with more than $42.5 million invested in major city projects and economic development. Hefty housing and development projects created approximately 2,347 jobs and parking facilities saw a 25% increase in revenue. Some of the best news? The city has continued its growth trend with a number of projects already in the works for this year.
More than $355 million is being invested in Madisonville, including plans for a mixed-use site with office, retail and residential space, as well as an $80 million hotel. The Uptown Consortium is expected to create new jobs, with some even including job training for populations of people already living in the area.
Cleveland Trails and Parks Highlight Importance of Green Space in Cities
Green space—like parks, trails, beaches and more—in cities is beneficial to the environment, especially as cities become inundated with new construction. But, green space also provides a handful of other benefits to downtown employees.
Downtown Cleveland, for example, has more than 100 investment projects completed or planned since 2012. To balance out the construction, the city has also made it a priority to invest in trails, biking paths and enhance its metroparks. Having recreational space available to downtown dwellers encourages physical activity and improves mental health.
Recently, the city began stage three of its Towpath Trail. The trail will combine the best of both worlds—the city skyline and industrial views from a greenway path. The available green space, combined with the excitement of new downtown developments also attracts the likings of millennials and generation Z, both of whom are looking for a live-work-play downtown lifestyle.
Investor Demand for Class A Space Grows in Columbus
Developers in Columbus are striving to meet the growing demand from investors for Class A office space. Class A space is expected to outpace Class B space in the Central Ohio region. In fact, nearly 1.7 million square feet expects to be delivered in the next 10 years.
Columbus’ start-up community has been a key player in leasing new, unique space in the city’s urban core. With funding and investment from larger companies or angel investors, these smaller businesses have the flexibility to position themselves in a highly sought space.
Even as more businesses demand Class A offices, outside investors may reposition some focus to the renovated Class B space in need of tenants. Renovations provide a value-add for both the investor and tenant. Companies can build out new elements to fit the needs of their companies without the heightened construction costs of a new building.
Image Credit: Jere Keys