By James Flick, Vice President, Research and Marketing
Economic indicators are pointing to a shift in the Cincinnati economy from recovery to expansion. The Consumer Price Index improved 1.5% between June 2013 and May 2014, according to the Bureau of Labor Statistics. The latest Regional Economic Outlook (prepared by the Cincinnati Consensus Forecast Committee, Northern Kentucky Chamber of Commerce and CincinnatiUSA Regional Chamber) projects local GMP to grow by 2.7% this year. Finally, local unemployment is down to 4.7%, an improvement of 1.3% over the last year.
The improving local economy is influencing positive investment activity leading investors to see real estate as a preferred asset class. 2014 was one of the strongest years for investments in Cincinnati as total sales volume topped $2.3 billion.
Retail led with $600 million in total sales volume for 2014, $370 million of which occurred during the fourth quarter.