Central Ohio Real Estate Market Projected to Continue Upswing in 2013
The Columbus chapter of The Urban Land Institute (ULI) just released a report on real estate trends in Central Ohio for 2013 to complement the national ULI Emerging Trends report. The findings of the report are based on feedback from local real estate leaders across a variety of sectors, and what it finds is that in general, the market will continue to grow next year in Central Ohio.
“It varies by sector,” explained Jung Kim, Programs Committee Co-Chair at ULI Columbus. “Multifamily, especially on the rental side, is going to continue to do well. Medical office is another area of opportunity. For most other sectors, it won’t be a great market, but there are opportunities and deals for smart businesses and investors.”
One clear trend on the demand side is the recent increased interest in urban living in Central Ohio. Findings in the report reenforce the idea that Millennials are looking to live closer to the urban core seeking amenities within walking distance from home. Over 5,000 new residential units have been announced or are currently under construction in the central part of Columbus, and few real estate leaders show strong concern about overbuilding.
“Some of the real estate experts we talked to believe that if you have good product in a good location, things will be fine,” said Kim. “It’s the marginal supply that will be affected most if there is a market correction.”
Of the eight real estate sectors detailed in the report, new commercial development has the lowest prospects for 2013. That means slow retail growth, mostly concentrated in existing areas that are already performing well. Survey respondents feel that community shopping centers are the strongest performers in the region, even more so that power centers or regional malls.
“A mall that fosters a strong social experience can be very successful,” added Kim. “This means restaurants and bars, movies and the arts, as well as investment and attention to detail in the streetscape and common areas. All these things can help distinguish bricks and mortar retail from shopping on the Internet.”
Most of the stronger communities within Central Ohio projected to perform well in 2013 ring the northern outerbelt, or are close to the core of the city. New Albany, Easton, Dublin, Polaris and Powell are near the top of the list, along with Downtown Columbus, Grandview Heights and Upper Arlington.
Survey respondents were also asked about up and coming areas, which strongly favored urban areas, including Downtown Columbus, East Franklinton, The University District and The Short North, as well as the Bridge Street Corridor area in Dublin.
“The top four up and coming areas are urban and number five on the list is striving for more urban, dense development to appeal to young professionals and entrepreneurs,” noted Kim.
2013 marks the first year that ULI Columbus has produced this Real Estate Trends report, but hopes that it can provide a more detailed look at the Central Ohio market compared to other regional reports.
“The local analysis better pinpoints where the region’s opportunities and challenges are and what our real estate leaders, many of who are active here and on a national level, are seeing for 2013 and beyond,” said Kim.
CLICK HERE to download a full copy of the report (PDF).
More information can be found online at columbus.uli.org.