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Top 10 Drivers of Industrial Real Estate Development: Rising Land Prices

  
  
  
Cincinnati Dayton Land Prices

By Jarrett Hicks, Senior Research Analyst, and James Flick, Vice President, Research and Marketing

Recently National Real Estate Investor’s Susan Piperato came up with a list of 10 drivers of Industrial Real Estate Development. They include:

  1. Obsolete buildings
  2. E-Commerce
  3. Panamax
  4. Improved Metroplex Economy
  5. Rising Land Prices and Higher Tax Rates
  6. Digital Manufacturing
  7. Increased Imports
  8. Federal Policy
  9. Weather Wildcard
  10. Economic Circumstances

(The full online article from National Real Estate Investor can be found here: http://nreionline.com/industrial/top-10-drivers-industrial-real-estate-development)

This series will explore how each of these 10 items can be found in the Cincinnati and Dayton regions. Additionally, when they are each combined with the near record lows in vacancies, they create an environment that is ripe for an explosion of industrial development.

In the fifth part we examine rising land prices and higher tax rates.

Top 10 Drivers of Industrial Real Estate Development Part 4: Improved Metroplex Economy

  
  
  
Cincinnati OH Map Optimized

By James Flick, Vice President, Research and Marketing

Recently National Real Estate Investor’s Susan Piperato came up with a list of 10 drivers of Industrial Real Estate Development. They include:

  1. Obsolete buildings
  2. E-Commerce
  3. Panamax
  4. Improved Metroplex Economy
  5. Rising Land Prices and Higher Tax Rates
  6. Digital Manufacturing
  7. Increased Imports
  8. Federal Policy
  9. Weather Wildcard
  10. Economic Circumstances

Another Thought about the Panama Canal

  
  
  
CargoShip Optimized

By Zach Smith, Research Intern and James Flick, Vice President, Research and Marketing

Shortly after the Top 10 Drivers of Industrial Real Estate Development: Panamax article was posted, I stumbled across an appropriate article in the Real Estate Issues, published by the Counselors of Real Estate. The article, submitted by K.C. Conway, covers the major issues and opportunities facing the Panama Canal’s expansion and its effect on real estate in the U.S. In particular, Conway writes about the key information being given to select markets, including Cincinnati.

In July 2012, the Department of Agriculture first started producing the Ocean Shipping Container Availability Report (OSCAR). This report gives detailed statistics for distributors and logistics companies to better handle valuable information associated with container movement across the United States. The OSCAR provides future data of containers for an advanced three week period, giving logistics companies an idea of freight moving across the particular cities at any given time, as well as future movement. This will allow them to better prepare for peak seasons and keep their product moving effectively from the ports to the inland. There are 18 cities selected to receive these reports; the criteria to be selected as an OSCAR city include:

Top 10 Drivers of Industrial Real Estate Development: Panamax

  
  
  
CargoShip Optimized

By Zach Smith, Research Intern and James Flick, Vice President, Research and Marketing

Recently National Real Estate Investor’s Susan Piperato came up with a list of 10 drivers of Industrial Real Estate Development. They include:

  1. Obsolete buildings
  2. E-Commerce
  3. Panamax
  4. Improved Metroplex Economy
  5. Rising Land Prices and Higher Tax Rates
  6. Digital Manufacturing
  7. Increased Imports
  8. Federal Policy
  9. Weather Wildcard
  10. Economic Circumstances

Top 10 Drivers of Industrial Real Estate Development: eCommerce

  
  
  
InsideWarehouse optimized

By Zach Smith, Research Intern and James Flick, Vice President, Research and Marketing

Recently National Real Estate Investor’s Susan Piperato came up with a list of 10 drivers of Industrial Real Estate Development. They include:


Dayton Industrial Market Overview

  
  
  
Download

By Jarrett Hicks, Senior Research Analyst

With the delivery of the 1.8 million SF Procter & Gamble distribution warehouse in Union, fourth quarter industrial net absorption in Greater Dayton was 2.36 million SF.  Two leases of over 100,000 SF took place during the quarter, which supplemented the net absorption figure.  For full-year 2014, net absorption was an impressive 4.44 million SF, compared to 2.6 million SF in 2013.

Dayton Office Market Stays Hot in 2014

  
  
  
Download

By James Flick, Vice President, Research and Marketing

According to the Fourth Quarter 2014 Dayton Office Market Report, the local unemployment rate sits at 5.0%, which is a 260 basis point reduction over the last 12 months. The lowering unemployment rate is a reflection of the Dayton region adding 6,000 jobs over that same time period.

Cincinnati Industrial Market Overview

  
  
  
Q4 2014 CIN Industrial Snapshot Report2

By Jarrett Hicks, Senior Research Analyst

2014 ended in a strong fashion for the industrial market, with quarterly net absorption of 704,877 SF.  Greater Cincinnati has now experienced 14 consecutive quarters of positive net absorption.

Full-year net absorption was 4.91 million SF, which was just shy of the previous year mark of 5.025 million SF.  This net absorption level is even more impressive when overall vacancy has been below 6.0% for the entire year.

Cincinnati Office Market See’s Another Positive Year

  
  
  
Q4 14 CN Office Snapshot Report

By James Flick, Vice President, Research and Marketing

According to our latest Cincinnati Office Market Snapshot, 59,876 square feet was positively absorbed by office users in the fourth quarter of 2014. This pushed the total for the year to 23,630 square feet. It was the fourth straight year Cincinnati’s office market has seen positive absorption. At 21.9%, overall vacancy was down 60 basis points quarter to quarter.

Downtown isn’t the only place seeing development activity

  
  
  
Economic growth Optimized

By James Flick, Vice President, Research and Marketing

Recently, I have written and talked a lot about development happening in Cincinnati’s Central Business District submarket. I have not been wrong to do so as there is plenty of activity occurring downtown including the Banks Phase II, new multi-family developments happening on 6th Street, 7th Street, OTR and other places, and dunnhumbyUSA’s new headquarters taking shape (just to name a few things).

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