Posts tagged columbus
The Industrial Sector in Central Ohio continues to be on a good path again this quarter. Vacancy rates are continually declining to almost record levels, 7.1%. With fewer spaces on the market, rental rates are on the rise. Developers are paying attention and speculative buildings are coming out of the ground.
The 3rd quarter has brought a strong mix of owner/user and investment sales. Loeb Electric, a Columbus-founded electrical company, has made a move from Grandview to the east side. Loeb Electric is reportedly selling its Grandview warehouses at 915 Williams and 906 Burr Ave to Grandview Yard developer Nationwide Realty Investors. The electrical contractor purchased a 264,000/SF facility at 1800 E Fifth Avenue. The new location at 1800 E Fifth Ave was the former Design Center building at East Fifth and Leonard Avenues in Columbus. (more…)
The 3rd quarter of 2013 saw a continuation of trends that have been developing over the previous quarters in the retail sector in central Ohio. With vacancy rates continuing to fall, prime retail space is becoming more and more difficult to find. With limited availability, lease rates on this prime retail space are as well, indicating a stronger market on the investment side.
In central Ohio, the housing market remains strong and new apartment complexes are springing up all over. With the influx of new houses, condos, and apartments, one of the strongest segments within the retail sector continues to be the restaurant industry. (more…)
The Columbus office market continues to improve. For simple proof of this, try renewing a 2008 lease at the same terms today. It’s just not going to happen. Class A & B direct vacancy rates are down to nearly 14.5% as Columbus’ 30 million SF inventory continues to be absorbed with nearly 360,000 SF of positive absorption in the last 12 months.
As vacancy decreases, we are seeing an uptick of rates in select submarkets. For example, in the CBD, Tenants rolling out of recession-era lease deals can expect some sticker shock as overall rates have gone up about $0.65 cents per SF in the last 12 months alone, primarily in the Class A product. Having said this, we are beginning to see a trickledown effect to some extent as higher end Class B buildings have initiated or will soon initiate a rate hike. Typically, this refers to those who are at occupancy levels of 75% or greater.
Notable new developments recently announced include Daimler’s construction of 250 S. High Street, a 160,000 SF Class A building in the CBD to be anchored by Resource. Daimler will also soon begin construction of Westar V, a 103,000 SF spec office building playing off their original four building development in Polaris.
Notable sale transactions include Romanek Properties Ltd. purchase of Two Miranova for $27 Million and Lawyers Development Corp. purchase of 200 Civic Center Drive (Columbia Gas Building) for $15 million. Notable lease transactions include Century Insurance relocating into 60,000 SF at Westar II in Polaris and Hewlett-Packard consolidating two local office operations into 30,000 SF at Atrium II in Dublin.
One of the most recognizable buildings in Northern Columbus,1105 Schrock Rd has a new owner this morning, due to impressive marketing efforts of Matt Gregory, Phil Bird and Mike Simpson of NAI Ohio Equities. At the time of transfer, the 213,000 SF building was over 85% occupied at the time of sale. The property is recognized by its prominent fountain visible from I-71. “Although the property was taken back by the bank in 2010,” says team lead Matt Gregory, “Our challenge was to present it as a Class A office investment, not a distressed asset.’” After securing lease renewals from the four anchor tenants, the team set about filling vacant space in the property. Combined with ongoing property upgrades, the resulting offering garnered 6 offers – and the property sold to a Canadian investor on July 11th. The selling price of almost $10,000,000 – or almost $45 per square foot – belied its “Distressed asset value.” Sandy Simpson boasts, “We’re very proud of this team and think that this their dramatic success will lead to further assignments of this type.” (more…)
With $17.3 billion in commercial mortgages coming due in 2012, landlords are more motivated than ever to incentivize tenants to renew their existing leases. Landlords are trying to stabilize their buildings and refinance. To do so, they must show a strong rent roll to the bank.
Some incentives such as free rent, reduced rent (blend and extend), upgraded lighting and dock doors have become common concessions offered by landlords to tenants who renew. It’s easier and safer for landlords to provide these concessions and keep their current tenants than try to re-fill the space. (more…)
Just as there were many factors leading to the recent economic recession in the United States, many factors are also leading to the slow economic recovery, none more apparent than the proliferation of online retail stores.
According to a Goldman Sachs research study in 2010, it is estimated that by the year 2019 retailers will see online sales surpass 50% of their dollar growth. As online sales continue to increase, the importance of online stores will only grow. (more…)
Over the past few years you have most likely heard of commercial properties going “into receivership”. This happens usually when a lender initiates foreclosure on a borrower in default of its mortgage agreement. If the Judge determines cause exists to preserve and protect a creditor’s asset, a receiver will be appointed to manage and control the asset during the foreclosure process. (more…)
There’s no question the recent economic recession has had a major impact on the commercial real estate industry all across the country. As banks tightened up on lending and businesses in almost every industry faced cutbacks and profit losses, so too did commercial real estate transactions slow down.
Despite the recession and any subsequent cutbacks, development in Columbus, Ohio has remained strong and continues to thrive to this day. Whether it be new residential communities, hotels, office complexes, or retail centers, Columbus has experienced a multitude of new development projects that have carried through the economic slow times.
One of the longest planned projects is the new boutique hotel, four-story office and retail building, and five-story parking garage development in the short north from Columbus-based developer Pizzuti. Plans for this development were first revealed in 2008, and received final zoning approval in March 2012, with a projected opening in early 2014. The hotel, called “The Joseph”, will be a ten-story, 135 room hotel located at 618 N High Street. (more…)
NAI Global, the largest network of independent commercial real estate firms worldwide, announced today that its previously reported acquisition by C-III Capital Partners LLC (C-III) has been completed. The transaction will help create a leading fully integrated commercial property services company that will operate in markets around the world. Locally based NAI Ohio Equities, LLC is the central Ohio representative of NAI Global.
C-III is a leading commercial real estate services company engaged in a broad range of activities, including primary and special loan servicing, loan origination, fund management, CDO management, principal investment, title services and multifamily property management. C-III is led by CEO Andrew L. Farkas, who founded and was Chairman and CEO of Insignia Financial Group, Inc. (NYSE:IFS). Its principal place of business is located in Irving, TX, and it has additional offices in New York, New York; Greenville, South Carolina; McLean, Virginia; Chicago, Illinois; Dallas, Texas and Nashville, Tennessee.
NAI Global will continue to operate as a separate company under its current management. C-III will accelerate NAI Global’s growth by exploring business development opportunities in strategic locations, including New York, London, Singapore and other primary global business centers. It will also invest in the growth of the corporate solutions and capital markets offering, expanding asset/property management, project/facilities management and valuation services worldwide. (more…)
NAI Ohio Equities, LLC are excited to announce that Rick Stearns and Matt Lasky will be joining the company.
Rick Stearns brings 35 years mortgage banking experience financing commercial real estate developments with institutional lenders. He will be part of the Asset Services Division at NAI Ohio Equities working with financial institutions, law firms, and partnerships dealing with distressed properties and REO.
View Rick Stearns’ bio page here.
Matt Lasky graduated from Miami University’s Farmer School of Business Cum Laude where he received his bachelor’s degree in finance with a concentration in statistical analysis. He will be specializing in the leasing and sales of investment properties at NAI Ohio Equities.
View Matt Lasky’s bio page here.