Northeast Ohio's Commercial Real Estate Market Benefiting From Natural Gas Reserves - by Terry Coyne
(appearing on
Ezinearticles.com December, 2011)
It seems that almost daily we hear reports on Utica or Marcellus Shale in the paper or on the news. There is a good reason for all the hype! Utica Shale alone has an estimated worth in the billions of dollars, much of which will go to landowners in Ohio, Pennsylvania, New York and West Virginia.
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CoyneReport - 2011 Year-End Wrap UpWhile looking back at the 2011 commercial real estate market, we first need to look at prior years to spot trends which may have occurred. Utilizing
CoyneReport.com, we have reviewed the past several years in terms of trends and sales and report the following:
The total value of sales over $1,000,000 has increased every year since 2008. Large sales in 2011 topped $700,000,000, for an increase of over $200,000,000 when compared to 2010. The years 2010 and 2009 also recorded an increased value of sales year-over-year. Although past events are not a perfect predictor of the future, it is safe to say that the economic recovery has started in Cleveland’s commercial real estate market. The numbers were boosted by a handful of large transactions, including Rock Ohio Caesars’ purchases of land and the Ritz, Duke Realty’s sale of its North Olmsted office building, and the purchase of the former Chrysler Stamping Plant in Twinsburg. Although these large sales can skew the numbers, their presence does signal that some investors are willing to risk a great deal of capital in Northeast Ohio.
A closer look at the types of properties sold in 2011 reveals some interesting details. Retail properties performed surprisingly well, with over $136 million in sales in 57 transactions > $1,000,000. The only types of buildings that saw more value in transactions were office and industrial properties. A total of 30 office properties sold for just over $137 million, for an average over $4,500,000 per transaction. 52 industrial properties sold for a total of $148,220,661, averaging over $2,800,000 per sale. Owner-users were the primary purchasers of industrial space in 2011, but the strengthening market would suggest that more investment sales could take place in the near future. The amount of money in land sales, more than $120 million, would also suggest that development could increase in 2012.
Many industries are still feeling the effects of the recession, and businesses have been reluctant to hire. The amount of money spent on real estate suggests that some industries, such as manufacturing, are recovering and others, such as apartments, continue to experience success.
Read More >>
CoyneReport - 2011 Year-End Wrap UpWhile looking back at the 2011 commercial real estate market, we first need to look at prior years to spot trends which may have occurred. Utilizing
CoyneReport.com, we have reviewed the past several years in terms of trends and sales and report the following:
The total value of sales over $1,000,000 has increased every year since 2008. Large sales in 2011 topped $700,000,000, for an increase of over $200,000,000 when compared to 2010. The years 2010 and 2009 also recorded an increased value of sales year-over-year. Although past events are not a perfect predictor of the future, it is safe to say that the economic recovery has started in Cleveland’s commercial real estate market. The numbers were boosted by a handful of large transactions, including Rock Ohio Caesars’ purchases of land and the Ritz, Duke Realty’s sale of its North Olmsted office building, and the purchase of the former Chrysler Stamping Plant in Twinsburg. Although these large sales can skew the numbers, their presence does signal that some investors are willing to risk a great deal of capital in Northeast Ohio.
A closer look at the types of properties sold in 2011 reveals some interesting details. Retail properties performed surprisingly well, with over $136 million in sales in 57 transactions > $1,000,000. The only types of buildings that saw more value in transactions were office and industrial properties. A total of 30 office properties sold for just over $137 million, for an average over $4,500,000 per transaction. 52 industrial properties sold for a total of $148,220,661, averaging over $2,800,000 per sale. Owner-users were the primary purchasers of industrial space in 2011, but the strengthening market would suggest that more investment sales could take place in the near future. The amount of money in land sales, more than $120 million, would also suggest that development could increase in 2012.
Many industries are still feeling the effects of the recession, and businesses have been reluctant to hire. The amount of money spent on real estate suggests that some industries, such as manufacturing, are recovering and others, such as apartments, continue to experience success.
Read More >>
