REAL ESTATE TRENDS IN CENTRAL OHIO 2016 PROVIDES INSIGHTS ABOUT COMMERCIAL AND RESIDENTIAL DEVELOPMENT IN COMING YEAR

The Columbus District Council of the Urban Land Institute (ULI Columbus) unveiled Real Estate Trends in Central Ohio 2016, its popular annual report offering in-depth insights and timely projections about trends influencing the local real estate market in the coming year on Thursday, December 3 at the Athletic Club of Columbus.

Christopher Herbert, the Director of the highly acclaimed Joint Center for Housing Studies at Harvard University, gave a keynote on the center’s 2015 State of the Nation’s Housing. According to JCHS’s recent study, 2015 State of the Nation’s Housing:

• Homeownership rates continue to decline across all age groups, single-family construction remains at historic lows and existing home sales have cooled.
• Meanwhile, rental household growth experienced its best 10-year period since the late 1980s, the rental vacancy rate is at its lowest point in nearly 20 years and rents have risen by nearly twice the pace of overall inflation.

View Christopher Herbert’s Presentation

The annual report and other works from the Joint Center for Housing Studies provide some of the nation’s leading housing related data that will, just like insight2050, continue to help inform the growing regional discussions about Central Ohio’s future growth and development. insight2050 is collaborative regional initiative among public and private partners in the Columbus Region designed to help communities proactively plan for the future housing needs of very different types of projected population growth for our region over the next 30 years.

Jung Kim, Managing Director, Research and Business at Columbus2020, highlighted key findings from the Real Estate Trends in Central Ohio 2016 report based on surveys and in-person interviews of leading real estate professionals in both the private and public sectors. View the Real Estate Trends in Central Ohio 2016 Presentation

The event also featured a panel discussion with:

• Robert Schottenstein | Chairman and Chief Executive Officer, M/I Homes, Inc.
• Robert Vogt | Partner, Vogt Strategic Insights
• Christopher Herbert | Director, Joint Center on Housing Studies at Harvard University
• Jung Kim | Managing Director of Research and Business, Columbus2020
• Moderator, Terry Foegler | Director of Strategic Initiatives, City of Dublin

REAL ESTATE TRENDS IN CENTRAL OHIO 2016 KEY HIGHLIGHTS

Downtown Takes the Reins

Downtown Columbus ranks number 1 among Central Ohio submarkets for 2016, overtaking Easton and New Albany from previous years. Grandview and Dublin are among the top gainers as development activity becomes increasingly visible. Interest in urban living and work environments is growing, radiating out from the city to suburbs as the suburbs explore denser development possibilities.

Business Prospects Sat Record High

On a scale from 1 (abysmal) to 5 (excellent), survey respondents rate 2016 business prospects at 4.27, the highest score ever in the five years covered by Real Estate Trends in Central Ohio. Several interviewees cite 2015 as among the best years they have seen in their careers, so 2016 has a high bar to jump.

Doing More with Less Space

In contrast to ever-growing building sizes for distribution and warehousing, other sectors are maximizing value with smaller spaces. Retail is beginning to serve double duty as both traditional store and omnichannel. The office sector is emerging but with a focus on urban locations and amenities rather than size. Smaller rental housing product continues to thrive as demand keeps up with supply.

O Skilled Tradesman, Where Art Thou?

Workforce has become a major pain point in real estate development, with shortages in construction and skilled trades. Subcontractors have tremendous leverage, and general contractors and developers are absorbing the costs. Ultimately, as the end user bears the costs, building affordable housing is a growing challenge.

Fed Said Dovish, So Did Our Survey

Nearly 4 out of 5 survey respondents and most interviewees now expect rises in interest rates. Similar to recent signals from the Federal Reserve, many anticipate small and gradual rises. Nevertheless, financing, refinancing and adjustments to portfolio are all in the cards.