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.
Keep up with Spaces’ monthly recaps—subscribe today.
The Need for Industrial Space on the Rise in Cincinnati and Columbus
It’s been a big year thus far for both Cincinnati and Columbus industrial markets. Cincinnati has experienced record-breaking activity since the start of the year, and total industrial vacancy sits at just 3.1%. Meanwhile, industrial vacancy in Columbus hovers near 4.4%.
To accommodate the rising demand, both cities are ramping up construction. Nearly 2 million square feet is currently being added to Cincinnati’s market, causing a much-needed uptick in vacancy.
Though Columbus is set to deliver 1.6 million square feet of space by the end of 2017, vacancy is expected to remain low. In fact, there is more than 9.5 million square feet of user demand in the market.
Cleveland Office Market Pulls in Out-of-State Investors
With a healthy and improved office market, more out-of-state investors are setting their sights on Cleveland. What’s the draw? Aside from a growing downtown resident population and development in the pipeline, annual sales volumes are approaching pre-recession levels. In two years, more than $550 million in office assets were traded in Cleveland—much of this investment coming from outside Ohio.
With the recent investments, tenants should expect higher rental rates in the near future. Out-of-state investors have signaled their intent to upgrade existing properties, including upgraded common areas, operating systems and improved amenities.