The industrial market in Dayton should continue to improve due to a recent increase in transactions. People are still being cautious with transactions but there is a hint of optimism coming about. The biggest concern regarding the industrial market is that there is little industrial space in the Dayton market. Because most of Dayton’s industrial stock is 25-50 years old, Dayton facilities could fall behind when it comes to meeting businesses’ needs. Currently, industrial users are looking for more product distribution than we have seen in the last three or four years. Previously, manufacturing users were looking for things like open space to accommodate modular manufacturing and access to a skilled labor pool; manufacturing was the strong market segment. Now, we see more users looking at distribution related features such as highway access, high capacity sprinkler systems, high ceilings, and other things emphasizing distribution.
Several recent notable deals in the Dayton area include Process Equipment’s recent purchase of McCall’s Printing Plant and Heidelberg Distributing’s purchase of the 800,000 square foot Cooper Tire Building. Both purchases were made in order to consolidate several buildings and maintain room for growth. Trending locations for warehouse and industrial markets in Dayton include Dixie highway and old national road, which are hotspots for distribution. Also Interstate 75 from Franklin to Troy continues to be a strong location for manufacturing. Most deals around the Dayton area are occurring due to needs of growing firms that may want to consolidate, maintain room for expected growth, and to take advantage of favorable conditions in Dayton while they last.
The low interest rates in Dayton are an attractive decision making tool for buyers in the area. The feeling that these low rates won’t last for long is the one of the important driving forces in the increase in purchasing and renting around Dayton. Another attractive attribute leading buyers to the Dayton area is the recent increase in car sales. Since Dayton is home to a quite a few car part manufacturers, buyers have a viable reason to purchase here. The expectation for this year is continued improvement with 2013 transactions passing those in 2012.