2010 Global Market Report - NAI Commercial Real Estate

Canton, OhioCincinnati, OhioContactNAI Spring+1 330 966 8800Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage Income401,820388,122212,030$57,514Stark County, including the greater Canton area, is strategicallylocated in Northeastern Ohio at the crossroads of theEastern and Midwestern markets. Its network of interstatehighways and one of the fastest growing airports in thecountry, allows companies easy access to several majorcities. This, coupled with a low cost of living, primarily theresult of very reasonable housing prices, makes StarkCounty a great place for companies and families to locate.A bright spot in the Stark County market has been thegrowth around the airport. The Akron-Canton Airport (CAK)offers the lowest average fare of any airport in Ohio. Industrial,office, retail, and hospitality have all developed alongwith the airport. Located in close proximity to the airport,Rolls Royce just announced a multimillion dollar expansionof their Fuel Cell Prototyping Center at Stark State College.Other areas throughout the county also remain upbeat. Onthe industrial front, Shear's Potato Chip broke ground onOhio's fist Gold LEED-Certified Food Manufacturing Plant inNEOCOM Industrial Park in Massillon. Another major projectis the new Federal Building in Downtown Canton. This$14 million dollar facility is expected to be completed inJuly 2010.The office market remained relatively flat with severaltenants consolidating space. The Schroyer Group, for example,is consolidating their operations and planning to move intoits new state of the art 57,000 SF office in the former HooverBuilding. The industrial market continues to struggle withquite a few large, older manufacturing buildings on themarket for sale or lease. However, distribution space of10,000 to 50,000 SF is somewhat limited around the I-77corridor. Downtown Canton remains a hot spot for retail withseveral new restaurants, a bustling arts district and othershops opening during 2009.Traditionally, the Canton area doesn't experience theextreme highs or lows found in other markets. This held trueas the overall region remained relatively stable compared toother markets around the country.ContactNAI Bergman+1 513 769 1710Metropolitan AreaEconomic Overview2009Population2014 EstimatedPopulationEmploymentPopulationHouseholdAverage Income2,187,2332,317,5321,114,241$68,738The Cincinnati, Ohio regional market has recently beenrecognized for its inclusion on the top 25 list of total personalincome (TPI), (U.S. Bureau of Economic Analysis), for twoof the top 10 hospitals in the nation (Modern Healthcare), andthree of the nation’s top 500 fastest growing businesses (Inc.).Cincinnati has two major areas of growth in an otherwisechallenging year. The Banks project in the CBD is a2.8 million SF mixed-use development on the Cincinnatiriverfront located between Paul Brown Stadium and theGreat American Ballpark. The second major growth area isthe Cincinnati/Dayton Metroplex, specifically the WestChester-Middletown submarket. Located between Daytonand Cincinnati, this market is activity-driven. The area ishome to three new hospitals: Westchester Medical Center,Children’s Medical Center Liberty Campus, and AtriumMedical Center; GE Aviation, a 403,000 SF campus in WestChester; and the Cincinnati Premium Outlets in Monroe, anupscale, 100-store retail mall.While transactions are conservative and the processextended, the commercial real estate market continues to bestable. The office market has produced positive absorption.Vacancy and rental rates remain consistent within historicmargins, and certainly better than has been witnessed inother U.S. office markets in general. At rates approaching8% for warehouse and flex at 10%, Cincinnati industrialwarehouse vacancy is also faring better than the U.S. norm.Though fewer transactions overall, sales prices haveremained steady and rental rates have dropped less than20%. Retail rental rates have increased as the retailinventory is being absorbed. Scheduled projects for Q42010 completion include The Banks Phase I (70,000 SF)and Corryville Crossings (100,000 SF).Cincinnati’s business-friendly environment, affordable housing,well-educated workforce, stability, diverse economy, andeasy access to national and regional markets create a solidenvironment for new business and continued growth.MedianHousehold Income$49,569MedianHousehold Income$57,738Total PopulationMedian Age40Total PopulationMedian Age37Canton At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$$$14.0010.008.0014.5012.008.002.002.5010.008.008.008.0020.00$$$$$$$$$$$$$16.0016.0012.0022.0018.0012.004.003.5014.0016.0016.0016.0030.00$$$$$$$$$$$$$15.0013.0010.0018.2515.0010.003.003.0012.0012.0012.0012.0025.00N/A10.0%16.0%N/A14.0%16.0%14.0%12.0%6.0%10.0%14.0%14.0%10.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBDLand in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-parkRetail/Commercial LandResidential$$$$$$75,000.00100,000.0020,000.0075,000.00200,000.0020,000.00$$$$$$150,000.00250,000.00100,000.00150,000.00850,000.00200,000.00Cincinnati At A Glance(Rent/SF/YR) Low High Effective Avg. VacancyDOWNTOWN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)SUBURBAN OFFICENew Construction (AAA)Class A (Prime)Class B (Secondary)INDUSTRIALBulk WarehouseManufacturingHigh Tech/R&DRETAILDowntownNeighborhood Service CentersCommunity Power CenterRegional Malls$$$$$$$$$$$20.0011.208.00N/A10.503.911.501.45N/A3.173.0011.0215.00$$$$$$$$$$$25.0022.8422.11N/A27.8126.417.957.50N/A18.0021.0015.2530.00$$$$$$$$$$$22.5016.1013.26N/A16.5814.303.302.75N/A14.1811.2114.6521.3123.0%12.0%11.0%N/A15.1%18.0%11.0%3.0%N/A2.0%13.0%7.0%10.0%DEVELOPMENT LAND Low/Acre High/AcreOffice in CBD$ 300,000.00 $ 3,000,000.00Land in Office ParksLand in Industrial ParksOffice/Industrial Land - Non-park$$$125,000.0029,443.0026,000.00$$$350,000.00150,000.00350,000.00Retail/Commercial Land$ 150,000.00 $ 3,809,524.00Residential$ 20,000.00 $ 250,000.002010 Global Market Report ■ www.naiglobal.com 114