Keeping up with CRE trends is as easy as 1-2-3 with our weekly piece! The Weekly Review is a new blog series that will be released every Friday. The market is constantly growing and adapting to new ventures and ideas, and our goal is to provide up-to-date information into what is happening in both the Columbus and U.S. markets, as well as the commercial real estate industry as a whole. As stories evolve, the Weekly Review will continue to follow along and update our clients and community.
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1
Intel announced on Monday that Bechtel will be the lead construction company for the New Albany project. It is one of the biggest engineering, construction and project management companies. Intel was fascinated by Bechtel’s “discipline and a highly professional approach” to working with the company. Catherine Hunt Ryan, Bechtel’s manufacturing and technology business president, said, "this is a monumental opportunity for the region. We are very humbled and incredibly excited to partner with Intel and the community to deliver on this ambitious project."
“Intel plans to build two factories, called fabs, in New Albany that will produce the tiny devices that power everything from cell phones to medical equipment to cars. Intel has said the site in Licking County could one day host as many as eight fabs, a $100 billion investment.”
2
Last month, retail sales, not including auto and gas, moved at an all-time high over $500 billion despite recession concerns. In one month, retail sales reached half of a trillion dollars. By the end of the holiday season, sales are projected to total over $1.1 trillion, which is the best holiday total ever. John Chang from Marcus & Millichap’s said that increased spending is good news. Last quarter’s vacancy rate was back to the same statistic that is was in Q3 2019, 4.8%.
“A diversified tenant mix will be key going forward for retail centers, especially as consumers are spending more on services than goods and sales at restaurants and bars pick back up post-COVID. Chang says the fluctuations in consumer preferences illustrate the value of having a diverse tenant mix, especially given the uncertain economic road ahead in 2023.”
3
This week, Honda announced it will make “a new hydrogen fuel cell electric CR-V” in the Marysville facility. Production is projected to start at the beginning of 2024, but production numbers have not yet been announced.
“That 200,000-square-foot Marysville facility opened in 2016 and was designed for production of the Acura NSX supercar as well as some other limited-edition vehicles. The last NSX was produced there last month, but the company hadn’t yet said what was next for that building and its associates.”