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When it comes to investing in commercial real estate, Columbus is one of the most attractive second tier markets in the country for a number of reasons.
Our economy is incredibly diverse in Columbus. We have many segments represented, including government, education, R&D, finance, services, manufacturing, and transportation/logistics to name just a few. On top of that, businesses are expanding. Home prices and sales are rising, and the population continues to grow in the largest city in Ohio and 14th largest in the U.S. Additionally, pricing of commercial real estate assets in a highly desirable, second tier national market like Columbus is much more reasonable than a tier one market like NYC, LA, or Chicago, so an investor’s dollar will go much further.
Here are some other reasons Columbus makes perfect sense for your next commercial real estate investment.
With 2018 underway, the question on many real estate professionals’ minds is: What is the market going to do this year?
Here are the trends our agents think will carry through over the next year.
Housing Market Will Continue to Perform
One item many experts agree on is that housing prices will continue to increase. Some are even projecting increases of 5 percent.
Low availability and high demand will make mid-market homes a hot commodity. Agents should have no problem selling mid-market homes in any locations, but are sitting on potential goldmines if they sell homes in ideal locations with high-end amenities.
In regards to multifamily, rents will continue to rise. With development focus on class A properties, the imbalance of supply and demand in the class B and C product will continue to generate rent increases in these property types as well, potentially causing a shortage of affordable housing in many markets.
DRK and Company is proud to announce it was ranked as the 8th Commercial Brokerage and the 8th Commercial Property Management Company in the area by Columbus Business First. The publication conducted its annual surveyed all commercial real estate companies in the Columbus, Ohio area and published a list of the top 25 organizations in each category.
The rankings highlight DRK’s growth in the marketplace as well as its growth as a company. Since last year’s rankings, DRK has increased the amount of property it leases and manages by more than 30 percent.
In the 2016 rankings, DRK came in 16th in the brokerage category, but was able to move up to 8th due to the increasing the number of agents they have available to clients and the efficiency with which the team executes leasing assignments thanks to their extensive knowledge of the central Ohio real estate market.
As more millennials enter the workforce, their impact on commercial real estate is becoming more prevalent.
According to an article by Forbes, nearly 75% of the workforce will consist of Millennials by 2025. Here are some things to keep in mind if you’re looking to attract this growing sector of the population in the upcoming years.
Space Design and Layout
The days of private offices for all are quickly disappearing as more Millennials enter the workforce. These young people are looking for open layouts that allow them to clearly see and talk to one another and collaborate on a constant basis. Instead of putting private offices and meeting rooms on the outside walls, new design trends have shifted these to the core of the space, allowing the natural light and views to flow into the open work areas.
In September, Agent Paul Schadek sold a 189 unit multifamily asset on the southeast side of central Ohio for $19,000,000.
Paul listed the asset in May, and put it in contract within 30 days of taking it to market after receiving multiple offers. This was our largest transaction in the third quarter. Paul has been with DRK & Company for 7 years. He’s consistently one of our top performers, specializing in apartment sales and buyer representation. His market knowledge, work ethic and attention to detail have allowed him to be one of our most successful commercial sales agents on a consistent basis. Congratulations Paul on another successful transaction!
The central Ohio multifamily market is incredibly solid right now and all research points to a continued trend in the performance and valuation of these assets.
Considering an investment in the central Ohio multifamily market? Or considering the sale of your multifamily assets? Contact Paul Schadek today to discuss your options.