A yearly survey on local real estate developers, construction company operators, architectural firms, and other related experts is being conducted by the Urban Land Institute, Columbus chapter. This annual activity is aimed to predict the possibilities for the local real estate market in the coming year. Last Thursday, the 2015 report was presented and it shows significant changes from the responses in the past years, Walker Evans of Columbus Underground reports.
After evaluating the different submarkets in the region, local experts see Downtown Columbus taking over the top spots from Easton and New Albany for being the best location for development and investment for the incoming year of 2016. Also taking over a higher spot are Upper Arlington and Grandview Heights submarkets in second place. Respondents identify the increasing desire for urban living and working environments and see a continuous grow in demand in these inner-ring suburbs.
According to the Urban Land Institute report, respondents are highly optimistic with their 2016 business prospects, giving an average score of 4.27 (out of maximum 5), the highest score recorded of the survey since its launch in 2010; a good indication of where the local Real Estate market is currently at. In the report, a number of respondents have claimed 2015 as being one of the best years for their industries and that they are looking forward to a steady increasing growth in the coming year.
In ULI's full report, "Columbus is healthy and doing well compared to its peers." "Columbus across the board is good. For industrial, we are top 5 in second tier markets in rent growth, absorption, and delivery." It also adds how Central Ohio compares "very, very favorably, especially with the technology industry."
The construction side of the local market, on the other hand, is dealing with shortage problems across all skilled-trade categories. This shortage in the construction workforce is expected to affect developers in terms of finishing projects on time, project limitations, and a possible rise in labor costs in 2016.
