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.
Booming apartment environment
There is a rapidly expanding amount of renters across the country, but especially in Columbus. The city’s vast number of millennials are largely renters by choice and continue to put off the purchase of their first homes. Alongside them in the continued demand increase for rental property are the baby boomers, who continue to downsize into rental communities so that they can live maintenance-free, enjoy amenities, socialization, and worry-free travel. Columbus also continues to see solid demand from those that rent by necessity. With apartments in high demand, reports show rent averages have risen four percent annually for the past several years and this trend continues in the future forecasts.
Thriving retail market
By doing research on the Columbus MSA, investors can minimize the risk of investing in the sometimes unpredictable world of retail real estate. There is significant infrastructure investment and redevelopment occurring all over the Columbus area. Columbus continues to attract new presence from major national retailers and is a hotbed for the development of new local retail ventures. The Columbus MSA is also home to some of the wealthiest suburbs in the state and the nation. Consider your ideal tenants and their products and services. Study the market demographics for population, disposable income, and consumer spending. Look for longer leases with rent increases built in to reduce periods of vacancy and maximize return in your retail property as well as considering the selection of opportune location.
The rise of online shopping has brought with it the growing need for warehouse space to hold all of the products being purchased on the internet that are distributed to consumers. The Urban Land Institute reports industrial warehouses are among the hottest commercial real estate investments, with building sizes growing exponentially from 10 years ago. The Columbus MSA is also home to one the largest inland intermodal sites in the country, centered around the Rickenbacker International Airport. With direct access to I-70 on both the east and west sides of Columbus, and accessibility by truck to most of the U.S. and Canada with a relatively short over-the-road travel time, there are many reasons distribution centers and transportation and logistics providers continue to choose to locate in the Columbus MSA.
Columbus and the surrounding cities in the MSA offer job creation tax credits and incentives for job growth and expansions. Property tax abatements, enterprise zone incentive packages, community reinvestment areas continue to grow in the region. The Columbus 2020 organization, the Mid-Ohio Regional Planning Commission, and countless other organizations continue to work tirelessly to build and strengthen public-private partnerships in the name of growth for the area, and they have seen great success. For more information on these incentives and organizations, visit their websites.
Ready to invest? Contact the experts at DRK & Company to learn more about commercial real estate opportunities in Columbus. We have the knowledge, expertise and resources to help you make the best choice in the Columbus market.