2012 Global Market report - NAI Global
2012 Global Market report - NAI Global
2012 Global Market report - NAI Global
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
Columbus, Ohio<br />
Dayton, Ohio<br />
Contact<br />
<strong>NAI</strong> Ohio Equities<br />
+1 614 224 2400<br />
Metropolitan Area<br />
Economic Overview<br />
2011<br />
Population<br />
2016 Estimated<br />
Population<br />
Employment<br />
Population<br />
Household<br />
Average Income<br />
1,950,778<br />
2,094,016<br />
1,038,444<br />
$71,754<br />
Columbus continues to lead the state in job growth,<br />
population growth and new development, due in large part<br />
to Columbus being the state capital and home to the Ohio<br />
State University, Battelle Memorial Research Institute, health<br />
industry leader Cardinal Health, Nationwide Insurance and<br />
the Limited Brand family of stores. Major hospital systems<br />
Ohio Health, University Hospitals and Mount Carmel Health<br />
Systems continue to compete for market share with new<br />
physician sourced medical office development.<br />
Downtown, Class A and Class B office product showed<br />
positive net absorption. The same was true in the suburbs,<br />
with Class B buildings out performing Class A product.<br />
Rental rates fell slightly in all office markets as a result of<br />
landlords aggressively chasing tenant renewals. Many office<br />
leases had rates reduced and terms extended, as tenants<br />
took advantage of landlords hoping to stabilize assets that<br />
would need refinancing in the next few years. Landlords<br />
offering gross leases continue to see the most leasing<br />
activity.<br />
Tepid absorption in all segments of the warehouse market<br />
is the good news, with vacancy decreasing slightly in bulk<br />
and manufacturing space. Interest from national retailers for<br />
new development has slowed substantially. The fast, casual<br />
restaurant category is the only segment of the retail market<br />
with new store growth. Retail rates remain stagnate with the<br />
exception of some newly announced boutique centers that<br />
are asking and getting net rates in the mid $20’s.<br />
Residential development of all kinds is virtually non-existent<br />
with the exception of a few urban based, for rent development<br />
projects Single family developers continue to pick up<br />
undeveloped blanks from lenders and competitors who hope<br />
to resume building once the existing inventory starts to be<br />
absorbed. Cap rates for all investment products seem to<br />
have stabilized. Properties that had been trading at 7%<br />
capitalization now hover around 9%.<br />
The central Ohio economy continues to chug along with the<br />
bulk of activity being generated by local operators not pulled<br />
down by economies outside our region.<br />
Contact<br />
<strong>NAI</strong> Dayton<br />
+1 937 294 7777<br />
Metropolitan Area<br />
Economic Overview<br />
2011<br />
Population<br />
2016 Estimated<br />
Population<br />
Employment<br />
Population<br />
Household<br />
Average Income<br />
979,855<br />
978,802<br />
496,219<br />
$62,806<br />
The national capital markets have been selectively increasing<br />
credit for trophy and single tenant net leased properties. The<br />
recession has ended and vacancy rates in the industrial sector<br />
are finally leveling off. However, the office sector and retail<br />
sector have been subject to downsizing in addition to significant<br />
rent renegotiations.<br />
The Dayton office sector ended Q3 2011 with a vacancy rate<br />
of 14.3%, unchanged from the previous quarter, but an<br />
increase over 2010’s rate of 12.8%. There was positive<br />
absorption of 30.490 SF. Rental rates ended Q3 2011 at<br />
$14.30/SF an increase over the previous quarter, but a<br />
decrease over 2010’s rate of $14.42/SF. There were 52,507<br />
SF delivered in Q3 2011. The largest lease signing was for<br />
30,000 SF by a medical group at 10500 Innovation Drive. The<br />
strongest submarkets remain the south market.<br />
The Dayton industrial sector ended Q3 2011 with a vacancy<br />
rate of 13.6%, a reduction from the previous quarter, and a<br />
reduction over 2010’s rate of 14.1%. There was positive<br />
absorption of 1,474,211 SF for Q3 2011. Rental rates ended<br />
Q3 2011 at $3.28/SF, a decrease over the previous quarter<br />
and 2010’s rate of $3.48/SF. A total of 1,500,000 SF were<br />
delivered in Q3 2011 with no sites under construction. The<br />
largest lease signing was for 84,200 SF by Macy’s at IWC East<br />
Extension. The strongest submarkets remain the south market.<br />
The Dayton retail sector ended Q3 2011 with a vacancy rate<br />
of 8.9%, a reduction from the previous quarter and 2010’s rate<br />
of 9.2%. There was negative net absorption of 42,360 SF for<br />
the Q3 2011. Rental rates ended Q3 2011 at $9.23/SF, an<br />
increase over the previous quarter, but a decrease over 2010’s<br />
rate of $9.34/SF. A total of 8,320 SF were delivered in Q3 2011<br />
with no sites under construction. The stronger submarkets<br />
remain the south and northeast markets.<br />
Median<br />
Household Income<br />
$58,502<br />
Median<br />
Household Income<br />
$50,890<br />
Total Population<br />
Median Age<br />
37<br />
Total Population<br />
Median Age<br />
38<br />
Columbus At A Glance<br />
(Rent/SF/YR) low High effective avg. Vacancy<br />
doWntoWn offIce<br />
New Construction (AAA)<br />
Class A (Prime)<br />
$<br />
N/A<br />
9.00 $<br />
N/A<br />
20.00<br />
N/A<br />
$ 14.00<br />
N/A<br />
14.20%<br />
Class B (Secondary)<br />
suburban offIce<br />
$ 6.00 $ 16.95 $ 8.00 17.60%<br />
New Construction (AAA)<br />
Class A (Prime)<br />
$<br />
$<br />
15.00<br />
10.00<br />
$<br />
$<br />
18.50<br />
16.50<br />
$ 15.00<br />
$ 11.00<br />
50.00%<br />
15.80%<br />
Class B (Secondary)<br />
IndustrIal<br />
Bulk Warehouse<br />
Manufacturing<br />
High Tech/R&D<br />
retaIl<br />
$<br />
$<br />
$<br />
$<br />
5.00<br />
1.00<br />
1.00<br />
3.50<br />
$<br />
$<br />
$<br />
$<br />
12.95<br />
3.25<br />
3.95<br />
7.95<br />
$<br />
$<br />
$<br />
$<br />
7.00<br />
2.20<br />
1.75<br />
5.75<br />
15.70%<br />
15.20%<br />
5.20%<br />
17.10%<br />
Downtown<br />
Neighborhood Service Centers<br />
Community Power Center<br />
Regional Malls<br />
$<br />
$<br />
$<br />
10.00<br />
8.00<br />
9.00<br />
N/A<br />
$<br />
$<br />
$<br />
16.50<br />
35.00<br />
15.50<br />
N/A<br />
$ 12.50<br />
$ 12.00<br />
$ 11.50<br />
N/A<br />
35.00%<br />
11.50%<br />
10.00%<br />
N/A<br />
deVeloPment land Low/Acre High/Acre<br />
Office in CBD<br />
$ 650,000.00 $ 1,100,000.00<br />
Land in Office Parks<br />
Land in Industrial Parks<br />
Office/Industrial Land - Non-park<br />
Retail/Commercial Land<br />
Residential<br />
$<br />
$<br />
$<br />
$<br />
$<br />
125,000.00<br />
45,000.00<br />
35,000.00<br />
50,000.00<br />
34,000.00<br />
$<br />
$<br />
$<br />
$<br />
$<br />
175,000.00<br />
75,000.00<br />
150,000.00<br />
500,000.00<br />
50,000.00<br />
Dayton At A Glance<br />
(Rent/SF/YR) low High effective avg. Vacancy<br />
doWntoWn offIce<br />
Premium (AAA)<br />
Class A (Prime)<br />
Class B (Secondary)<br />
suburban offIce<br />
New Construction (AAA)<br />
Class A (Prime)<br />
$<br />
$<br />
$<br />
$<br />
$<br />
15.50<br />
12.00<br />
6.00<br />
15.00<br />
12.50<br />
$<br />
$<br />
$<br />
$<br />
$<br />
21.00<br />
18.25<br />
12.50<br />
20.00<br />
18.00<br />
$ 17.25<br />
$ 15.25<br />
$ 10.45<br />
$ 17.25<br />
$ 14.25<br />
22.50%<br />
18.00%<br />
12.00%<br />
15.50%<br />
16.30%<br />
Class B (Secondary)<br />
IndustrIal<br />
Bulk Warehouse<br />
Manufacturing<br />
High Tech/R&D<br />
retaIl<br />
Downtown<br />
Neighborhood Service Centers<br />
$<br />
$<br />
$<br />
$<br />
$<br />
5.00<br />
1.65<br />
N/A<br />
4.50<br />
5.00<br />
4.50<br />
$<br />
$<br />
$<br />
$<br />
$<br />
10.00<br />
4.50<br />
N/A<br />
12.00<br />
12.00<br />
14.00<br />
$<br />
$<br />
$<br />
$<br />
$<br />
7.25<br />
3.55<br />
N/A<br />
9.75<br />
7.50<br />
9.65<br />
10.50%<br />
12.50%<br />
N/A<br />
21.50%<br />
9.00%<br />
19.30%<br />
Community Power Center<br />
Regional Malls<br />
$<br />
$<br />
11.00<br />
15.00<br />
$<br />
$<br />
14.00<br />
32.00<br />
$ 11.75<br />
$ 21.00<br />
6.40%<br />
7.20%<br />
deVeloPment land Low/Acre High/Acre<br />
Office in CBD<br />
Land in Office Parks<br />
Land in Industrial Parks<br />
Office/Industrial Land - Non-park<br />
$<br />
$<br />
$<br />
$<br />
182,500.00<br />
20,000.00<br />
22,200.00<br />
14,000.00<br />
$<br />
$<br />
$<br />
$<br />
478,000.00<br />
165,000.00<br />
54,550.00<br />
42,500.00<br />
Retail/Commercial Land<br />
$ 50,000.00 $ 1,150,000.00<br />
Residential<br />
$ 2,500.00 $ 135,000.00<br />
<strong>2012</strong> <strong>Global</strong> <strong>Market</strong> Report n www.naiglobal.com 125