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
“Expect continued resilience but on a muted scale for industrial assets in 2024, according to Newmark, which said in a recent report that economic uncertainty continues to exert pressure on consumers, developers, occupiers, and investors.”
“Cap rates have risen 100 basis points among private market industrial since the end of 2022. Cap rate and BBB bond yield measures were 5.4% at the end of 2023. Securitized, debt finance has fallen sharply from its recent peak in 2021 amid a depressed, issuance market while insurance lending has picked up share in 2023. This occurred even more so in the second half of 2023.”
2
“As adaptive reuse of office buildings becomes a more mainstream solution for vacant or underperforming office buildings, experts say there are a number of characteristics that make these kind of projects work. ‘You can't move the building...so you have to evaluate context from a new (occupant) point of view,’ said Alan Scholssberg, principal and regional practice leader at Design Group. ‘Adaptive reuse is part of the solution.’"
“Key characteristics include:
Form: Can a building's shape or ceiling heights work in a conversion to a new use?
Floor plates: How will the size and shape of a building's floor plates work for a potential new use? How can a developer avoid creating unusable space?
Envelope: How conducive are the four exterior walls to meeting current energy codes, adding operable windows or adapting to repositioning interior walls for new use?
Services: Can existing services, such as elevators or HVAC, function for other occupants?”
3
“A pickleball-anchored entertainment venue with food, drinks and other recreational activities is coming to Westerville. Smash Park Entertainment Group, an Iowa-based company with multiple locations in the Midwest, will build its newest facility at the southeast corner of Polaris Parkway and Cleveland Avenue. It will be located within Westerville's Westar Place district, which the city has prioritized for new amenities to serve nearby businesses and activate the area throughout the week.”
“’Westerville is home to a number of corporate headquarters, and this is exactly the type of amenity those businesses have requested and that we’ve envisioned for this prominent site,’ Westerville Economic Development Director Rachel Ray said in a press release. ‘With its event spaces and team-focused games, we’re confident that Smash Park will become a go-to destination for employees of Westar business and visitors from across the region.’”
