THE WEEKLY REVIEW | SEPTEMBER 22, 2023
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
Industrial - Amazon to Spend $3.5B on More Data Centers in New Albany
“The New Albany City Council approved an agreement Tuesday with Amazon Web Services that calls for the tech company to spend $3.5 billion to expand its data center operations in the city. Under the agreement, Amazon will build five data centers and related buildings totaling 1.25 million square feet on 85 of 439 acres the company bought along Beech and Miller roads early this year. Construction would begin in 2025 and be completed by Dec. 31, 2030, according to the Community Reinvestment Area Agreement unanimously approved by the council.”
“According to the agreement, Amazon will spend $1.8 billion on buildings and $1.7 billion on equipment. The data centers would create approximately 105 full-time jobs with an annual payroll of $9 million, or an average of $85,000 per position.”
2
Development – Historic Downtown Columbus Building Changes Hands, Gets Upgrades
“Columbus-based Braun Donnell Development is reimagining a historic downtown building. The firm bought the Lilley Building at 77-83 S. 4th St. for $2 million in June, according to Franklin County Auditor records. It plans to redesign two of the four office suites inside as well as common areas, said Dustin Braun, president of Braun Donnell. Braun Donnell is a real estate developer and property management company based in Olde Towne East. The firm redeveloped Engine House No. 12 on Oak Street, now the home of Gemut Biergarten.”
“‘We have a passion for old, historic buildings and downtown,’ Braun told me. ‘We have a passion for bringing buildings back to creating value for the community.’ The 4th Street building had been occupied before the firm bought it, but Braun described it as underutilized.”
3
Retail - Retailers Have Little Appetite to Shrink
“More retailers are seeking increased geographical reach and market saturation. Nearly half (49%) of retailers plan to expand their footprint over the next five years versus 28.5% looking to reduce space, according to Colliers’ Fall 2023 Retail Report. Compare that to 2016, where the planned expanders edged their reducer counterparts by less than a percentage point, 40.5% to 39.7%. Expansion also boosts retailers’ omnichannel strategy. Colliers found that opening a physical store led to an average 37% increase in online sales in the respective geographic area.
“’Retailers that combine the convenience of online shopping with the personal touch of in-store experiences provide customers with a more comprehensive and engaging shopping experience,’ says Nicole Larson, national manager of retail research at Colliers. ‘Furthermore, one-third of customers do not trust retailers that only operate on one channel, whether online or offline.’”
